Insights 2024.08.08

Trends surrounding CFP (Carbon Footprint) ①

table of contents

Mayumi Isobe, Senior Fellow , Zeroboard Research Institute

Introduction

There are various developments surrounding LCA (Life Cycle Assessment), especially CFP (Carbon Footprint of Products), which shows the climate change impact of products. Some countries, mainly in Europe, are paying attention to the regulatory movement to require the submission of GHG emission amount of products, but other places are also moving forward.

Movements centered on Europe

Two types of regulations are attracting attention in Europe: the EU Battery Regulation*1 and the Carbon Border Adjustment Mechanism *2 .

Under the EU Battery Regulation, performance requirements for storage batteries will need to be compiled and CFP calculations will be required by February 2025 ^* , and preparations for data collection are currently underway (however, due to delays in issuing detailed regulations, it is currently believed that the regulations will be applied from autumn 2025 onwards). The regulation aims to ensure that all storage batteries, which have a significant impact on the mobility and Energy sectors, are Manufacturing in a safe, circular, and sustainable value chain. Furthermore, consideration is being given to allowing the concept of a circular economy to be evaluated in CFP calculations based on the flow of environmental footprints.

Additionally, the Carbon Border Adjustment Mechanism *2 is seeing movement in Japan for steel and aluminum products, which are currently subject to the mechanism and are exported in large quantities from Japan. The transition period (2023-2025) has already begun, and preparations are underway for the actual data collection required from October 2024 onward. This is a measure to prevent Manufacturing plants from moving overseas (carbon leakage) due to the reduction in free allocations under the European emission amount Trading Scheme (EU ETS). It also promotes fair competition by requiring products imported from outside Europe to bear the same carbon costs as those within Europe. However, this calculation is based on the apportionment of GHG emission amount at factories rather than CFP, which differs from the Contents of the previous ISO 14040/44.

Either way, Europe is developing Industry while changing the rules to place the environment at its core, and is moving toward a green economic society in which low-carbon products are in demand.

China's Move

Outside of Europe, the most impressive example is the carbon footprint disclosure information for automobiles in China (see figure below). This has been promoted by the Ministry of Ecology and Environment of the People's Republic of China. This method of calculating automobile CFP has been decided upon through the collection and calculation of a large amount of data, involving the relevant Industry. Furthermore, a Carbon emission amount Platform *3 has been established as a platform for collecting and disclosing this data, and in the future, automobile manufacturers and related Company will disclose CFP information through this platform. China has also signed an agreement *4 with the British Standards Institution (BSI) and has stated that it will work to make this a reliable database in Europe as well.

Furthermore, China has set a goal of tackling climate change by peaking carbon dioxide emission amount in 2030 and achieving carbon neutrality by 2060 *5 , and is aiming to raise awareness of reducing carbon dioxide emission amount in China's domestic automotive supply chain and disclose information that will be trusted internationally.

Developments in Japan

In Japan, the construction sector is seeing active activity, with efforts to calculate the CFP of buildings. The Act on Improvement of Energy Consumption Performance of Buildings was revised*6 with the aim of reducing GHG emission amount from buildings, which contribute significantly to emission amount from the commercial and residential sectors that account for the majority of Japan's carbon dioxide emission amount . In conjunction with this, the Tokyo Metropolitan Government is recommending the use of eco-materials during construction. *7 In line with these efforts, the Architectural Institute of Japan and the Zero Carbon Building ( _LCCO2 Net Zero) Promotion Council have updated and Create a database and calculation tool (J-CAT *8 ), and have released a trial version. The tool allows the use of the Environmental Products Declaration (EPD) of individual building materials.

Towards carbon-free products

As mentioned above, there is strong momentum in other countries to make efforts to calculate GHG emission amount from products, and as a result, there are individual movements such as requests from European business partners to calculate the GHG emission amount of their own products.

In the past, we have submitted the results of CFP calculations to our customers. However, we rarely made the results public or compared them with similar products from other companies. LCA/CFP is a result of calculations based on certain assumptions, and is not an absolute value. If it was expected that we would compare our results with those of other companies, we would usually consult with the relevant parties. On the other hand, as stated in the Ministry of Industry, Trade and Industry's Carbon Footprint Guidelines, individual companies are now allowed to present their own CFP figures. Although it may be an Issue for those who look at the figures, it would be counterproductive to pursue smaller figures. In addition, blindly asking upstream suppliers to provide data would also increase the burden. CFP is also a quality factor, such as performance, design, and price, but as someone who has been involved in the practical aspects, I would like you to know the reality that CFP is not calculated as accurately as other factors.

It is important to speed up efforts toward carbon-free products, but we want to avoid hastily announcing figures that will end up being a temporary movement. From now on, in addition to releasing the results of calculations such as CFP and LCA, we need to think about ways to communicate the figures so that they can be judged as figures for long-term indicators from the perspective of how to reduce emissions in the future and whether they are actually being reduced, for example by showing the current level against the base year value and reduction target value, and providing details separately.

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＜Reference source＞
*1) https://environment.ec.europa.eu/topics/waste-and-recycling/batteries_en#overview
*2) https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en
*3) http://en.auto-cpp.com/
*4) http://en.auto-cpp.com/News/Read/4
*5) https://unfccc.int/sites/default/files/NDC/2022-06/China Fallen State Voluntary Contribution Formation Effects New Title New Adoption Measures.pdf
*6) Revised Building Energy Conservation Act https://elaws.e-gov.go.jp/document?lawid=354AC0000000049
*7) https://www.kankyo1.metro.tokyo.lg.jp/dbook/202210/master_plan/2022-10_tokyo_kankyo/index.html#page=73
*8) Ministry of Land, Infrastructure, Transport and Tourism press release: Trial version of building life cycle carbon calculation tool released (J-CAT) https://www.mlit.go.jp/report/press/house04_hh_001226.html

Article author

Mayumi Isobe(Senior Fellow, Zeroboard)
He has been involved in LCA work for approximately 20 years in the Manufacturing/research and development department. He established product LCA calculation methods and was involved in obtaining third-party certification and LCA calculations at the research stage. He also has experience in a wide range of activity, including public relations and academic association work. As an LCA/CFP expert, he is responsible for supporting LCA calculations for products and Service. He is a former director of the Japan Institute of Life Cycle Assessment (LCA). He graduated from the Graduate School of Environmental Science at the University of Tsukuba with a Master's degree in Environmental Science.