Column 2024.11.05

What is GHG (Greenhouse Gas)? Explanation of the meaning of GHG and how to calculate it

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Businesses are legally obligated to calculate their GHG emission amount and report them to the government. This article provides a detailed explanation of the basic calculation method for GHG emission amount and the types of gases that are subject to calculation.

What are GHGs (greenhouse gases)? *1

GHG stands for "Greenhouse Gas." Greenhouse gases have the property of absorbing heat and raising temperatures, which is why they cause global warming.

Therefore, businesses that emit a certain amount of greenhouse gases or more are required to calculate their own emission amount and report them to the government. GHG emissions can be calculated by adding up the direct emission amount of businesses in the supply chain (Scope 1), indirect emissions due to the use of Energy supplied by others (Scope 2), and emission amount of others related to the business's activity , such as the procurement and sale of raw materials and waste emission amount(Scope 3).

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How to calculate GHG emission amount

GHG emission amount can be calculated using the following formula. GHG emission amount for the entire organization can be calculated by calculating GHG emission amount for each scope individually and then adding them up.

Greenhouse gas emission amount= activity amount x Emission factor*2

Here, activity levels are specific data such as fuel consumption and electricity usage, and Emission factor are numbers that indicate the amount of GHG generated from those activity.

List of greenhouse gases to be reduced

All of the greenhouse gases listed below are included in the calculation, and the conditions for calculation vary depending on the type of gas.

1. Energy derived carbon dioxide (CO2)
② Non- Energy-derived carbon dioxide (CO2)
3) Methane (CH4)
④ Nitrous oxide (N2O)
⑤Hydrofluorocarbons (HFCs)
⑥Perfluorocarbons (PFCs)
⑦Sulfur hexafluoride (SF6)
8. Sulfur trifluoride (NF3)

Conditions for businesses that are required to report on GHG emissions

Energy derived carbon dioxide

・For specified business operators

Businesses whose total Energy consumption at all business locations is 1,500 kl/year or more and that fall under any of the following categories:

(1) Specified businesses under the Energy Conservation Law

(2) Specified chain business operators under the Energy Conservation Law

(3) A business that is a certified management control business or management-related business under the Energy Conservation Law and whose total Energy consumption at all business locations is 1,500 kl/year or more.

(4) Businesses other than those listed above whose Energy consumption at all business locations is 1,500 kl/year or more.

- In the case of a specific transport emitter

(1) Specified freight transport business under the Energy Conservation Act

(2) Specified passenger transport operators under the Energy Conservation Act

(3) Specified air transport operators under the Energy Conservation Act

(4) Specified shippers under the Energy Conservation Law

(5) A shipper who is either a certified management-controlled shipper or a management-related shipper under the Energy Conservation Act and who has a freight transport volume of 30 million ton-kilometers or more per year transported by a freight transport business operator.

(6) A cargo and passenger transport business operator that is either a certified management integrated cargo and passenger transport business operator or a management-related cargo and passenger transport business operator under the Energy Conservation Act and has a total transport capacity of 300 cars or more.

② Non- Energy derived carbon dioxide, ③ Methane, ④ Nitrous oxide, ⑤ Hydrofluorocarbons, ⑥ Perfluorocarbons, ⑦ Sulfur hexafluoride, ⑧ Sulfur trifluoride

・For specified business operators

Business operators that meet the following requirements (1) and (2)

(1) activity involving the emission of greenhouse gases (emission activity ) specified for each type of greenhouse gas are carried out, and the total amount of emission amount associated with the emission activity is 3,000 tons or more in CO2 equivalent for each type of greenhouse gas.

(2) The number of regular employees employed by the business as a whole is 21 or more.

＊3

The table below lists the businesses and the greenhouse gases they cover.

Classification	Specified business operators	Specified transport emitter
Energy derived carbon dioxide	・Businesses whose total Energy consumption at all business locations is 1,500 kl/year or more (1) Specified business under the Energy Conservation Act (2) Specified chain business under the Energy Conservation Act (3) Certified management general business or management-related business under the Energy Conservation Act (4) Businesses other than those listed above whose Energy consumption exceeds the standard	(1) Specified freight transport operators under the Energy Conservation Act (2) Specified passenger transport operators under the Energy Conservation Act (3) Specified air transport operators under the Energy Conservation Act (4) Specified shippers under the Energy Conservation Act (5) Certified management general shippers or management-related shippers with a transport volume of 30 million ton-kilometers or more (6) Certified management general cargo and passenger transport operators or management-related cargo and passenger transport operators with a total transport capacity of 300 cars or more
② Non- Energy derived carbon dioxide	Emissions of 3,000 tons or more of CO2 equivalent due to greenhouse gas emissions activity Businesses with 21 or more employees	-
3) Methane
④Nisothodontic oxide
⑤Hydrofluorocarbons
⑥Perfluorocarbons

summary

Businesses that emit a certain amount of greenhouse gases or more are required to calculate their emission amount and report them to the government. It is essential to deepen your knowledge of GHG emission amount calculations in order to minimize the impact on the environment.

Understanding GHG emission amount throughout the supply chain enables efficient resource management and cost reduction, which in turn helps comply with environmental regulations and improves corporate image.

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＜Reference source＞
＊1：https://www.env.go.jp/earth/ondanka/ghg-mrv/overview.html
＊2：https://gurilabo.igrid.co.jp/article/3297/
＊3：https://ghg-santeikohyo.env.go.jp/about