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Greenhouse gases (GHGs) are heat-trapping gases in the Earth’s atmosphere that play a crucial role in regulating our planet's temperature. Similar to a greenhouse, the atmosphere allows sunlight to enter and warm the Earth’s surface. At night, the surface cools and releases heat back into the atmosphere. GHGs like carbon dioxide, methane, nitrous oxide, and fluorinated gases trap some of this heat, maintaining a temperature suitable for life.
While this process occurs naturally, it requires a delicate balance. Excessive emissions of GHGs disrupt this balance, causing the atmosphere to retain more heat than necessary. This leads to global warming, which drives climate change, impacting ecosystems, weather patterns, and our way of life. Understanding and mitigating these emissions is vital to preserving our environment for future generations.
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Globally, carbon dioxide (CO2) is the primary greenhouse gas driving climate change. It is predominantly released through the burning of fossil fuels such as oil, natural gas, and coal that power industries, transportation, and buildings. Additionally, activities like burning solid waste, trees, and wood products contribute significantly to CO2 emissions. Deforestation and soil degradation further exacerbate the issue by reducing the planet's capacity to absorb and store carbon.
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Methane (CH4) ranks as the second most-emitted greenhouse gas worldwide. It is released during the production and transportation of coal, natural gas, and oil. Additionally, significant amounts of methane are generated from livestock, agricultural activities, and the decomposition of organic waste in landfills.
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Nitrous oxide (N2O) accounts for approximately 4% of global greenhouse gas emissions. It is primarily released through industrial processes, agricultural practices such as fertilizer application and animal waste management, fossil fuel combustion, and wastewater treatment.
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Fluorinated gases (F-gases) are powerful greenhouse gases with a significant impact on global warming. These include hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3), commonly emitted from household, commercial, and industrial activities such as heating, ventilation, and air conditioning (HVAC) systems. Known as high global warming potential (GWP) gases, F-gases trap considerably more heat than carbon dioxide (CO2) on a per-mass basis, making their regulation critical to climate mitigation efforts.
Rising greenhouse gas levels are altering climate patterns, warming oceans, and accelerating ocean acidification—cascading effects that threaten our environment, public health, and the global economy, demanding urgent action.
Sectoral greenhouse gas (GHG) emissions differ by country, yet the largest contributors worldwide include the energy supply sector, industry, transportation, buildings, and agriculture, forestry, and other land use. According to the IPCC, the energy supply sector accounts for 34% of global direct emissions. However, when indirect emissions from electricity and heat production are factored in, the industry sector emerges as the primary emitter—illustrating how these sectors are interlinked in driving global emissions.
The energy supply sector powers key end-use industries—including industry, transportation, buildings, and agriculture—by relying on both fossil fuels (coal, oil, and natural gas) and renewable energy sources (wind, solar, bioenergy, and hydro). Although it currently stands as the largest contributor to global direct greenhouse gas (GHG) emissions, the energy supply sector is also well-positioned to be among the first to achieve net-zero CO₂ emissions, driven by rapid renewable adoption and robust decarbonization initiatives.
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The industry sector relies heavily on fossil fuels for activities such as food processing, mining, and manufacturing materials—textiles, cement, iron, steel, and plastics. This dependence makes it a major source of greenhouse gas (GHG) emissions. When indirect emissions from electricity are included, the industry sector becomes the world’s largest emitter.Rising energy costs over the past few decades have spurred improvements in efficiency and production processes across the sector. Yet, industry-related GHG emissions continue to climb, underscoring the need for more comprehensive strategies to decarbonize this critical sector.
The land is crucial for agriculture, which underpins the livelihoods of our growing population. Beyond providing food and employment, it also hosts diverse ecosystems that support countless plant and animal species. However, deforestation, fires (both deliberate and accidental), and emissions from livestock, soil, and nutrient management make the Agriculture, Forestry, and Other Land Use (AFOLU) sector responsible for nearly a quarter of global greenhouse gas emissions. Thankfully, various mitigation strategies—such as reforestation, improved crop and grazing land management, and the restoration of organic soils and degraded areas—offer pathways to reduce these emissions.
The transportation sector is the largest direct source of GHG emissions in the United States, surpassing even the energy supply sector. Fossil fuel combustion—primarily gasoline and diesel—for passenger vehicles, highway travel, air transport, marine shipping, and rail accounts for about 27% of total U.S. greenhouse gas emissions.However, global momentum is shifting. New policies designed to reduce transportation emissions, such as Canada’s carbon tax, have already led to lower gasoline demand and overall emissions, illustrating the impact of strategic climate initiatives on the transportation sector.
Private and commercial buildings account for nearly 40% of global energy-related CO₂ emissions. These emissions arise from two primary sources:
Operational Carbon: The day-to-day energy consumed for lighting, heating, cooling, and other functions, which makes up 27% of all annual carbon emissions worldwide.
Embodied Carbon: The emissions generated during a building’s construction, maintenance, and eventual demolition—responsible for about 10% of annual emissions, depending on the building type.
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A handful of countries—China, the United States, India, Russia, and Japan—emit the majority of the world’s greenhouse gases (GHGs). Notably, on a per capita basis, the U.S. produces 5.48 megatons more CO₂ annually than China, surpassing Uganda’s total 2020 emissions. This demonstrates that countries do not contribute equally to GHG emissions.
Over the last three decades, the poorest half of the global population has been responsible for just 16% of emissions growth, while the richest 1% has accounted for 23%. Compounding this disparity, low-income nations are more susceptible to climate impacts due to their economic vulnerability, further highlighting the inequity in global emissions and climate change consequences.
Whether or not a GHG inventory is mandatory for your organization, tracking emissions sources and associated costs is invaluable. It enables you to pinpoint opportunities for reduction, monitor trends over time, and shape corporate strategies—ultimately guiding your emissions reduction priorities.
Greenhouse gas reporting, otherwise known as carbon reporting or carbon footprinting, is about measuring your organization’s GHG emissions and its contribution to climate change. Thanks to the Kyoto Protocol requiring countries to adopt policies that mitigate GHGs, many organizations around the globe are required to report their emissions. Organizations are also increasingly expected by shareholders to declare their annual emissions and goals for the sake of transparency and accountability.
To get you started, the GHG Protocol has compiled a simple sample reporting template to help outline reporting requirements.
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Greenhouse gas reporting—also called carbon reporting or carbon footprinting—involves measuring an organization’s GHG emissions and its impact on climate change.
Under the Kyoto Protocol, many organizations worldwide must report their emissions, and shareholders increasingly expect disclosure of annual emissions and reduction targets for greater transparency. To help you get started, the GHG Protocol provides a basic reporting template outlining the core requirements.
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Creating an emissions report can be challenging, but it’s an essential step in effectively measuring and tracking your organization’s greenhouse gas emissions. This information forms the foundation for broader sustainability or ESG reporting, as it details emissions by both scope and activity.
Additionally, it informs accurate emission estimates and can help organizations meet regulatory requirements—such as Canada’s mandate for facilities emitting over 10,000 tons of GHGs per year to report annually. If you’re unsure how to begin building an inventory, reviewing sample reports is a helpful way to learn what data to include and how to structure it.
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A Corporate Social Responsibility (CSR) report details how an organization addresses its social and environmental responsibilities.
Typically, it covers sustainability initiatives, community engagement, and ethical business practices.
While some companies publish standalone CSR reports each year, others choose to include CSR information within broader sustainability or ESG reports.
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t’s generally recommended—and sometimes mandatory—for organizations to use an accredited third-party verification service (aligned with ISO 14064-1) to ensure their reports meet relevant regulatory or program requirements.
In North America, the two main accreditation bodies are ANSI (American National Standards Institute) and SCC (Standards Council of Canada)—lists of accredited verification bodies are available on their respective websites. In the United Kingdom, UKAS (United Kingdom Accreditation Service) serves as the National Accreditation Body, offering assessments and accreditations for verification providers.
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