Account for emissions from project establishment and end-of-life phases that are amortized to removals using various amortization rules
While most emissions relate to a project’s operational phase, project proponents must also account for emissions arising from the Project establishment and end-of-life phases.
ExampleA component could be created for a steel embodied emission and the amortization rule Estimated Project Tonnage selected. The emission is calculated based on datapoints provided and automatically amortized to removals each verification based on the gross CO₂e removed within that reporting period, proportional to the expected gross CO₂e removed over the project lifetime.
Project emissions should be added by adding components to the Project establishment & End of life section of the LCA builder.Relevant components may be those outlined in the Embodied Emissions Accounting module.
2
Enter input values
Enter the input values for the emission calculation required by the component.
3
Upload sources
Upload files to evidence the datapoints provided.
4
Select an amortization rule
Click the ... menu and select Change amortization rule to select how the project emission will be amortized and amortized to removals. Enable additional rules by updating your project settings in the General page.Supported options are:
Estimated project tonnage
Estimated project lifetime
Specified target date
Manual
New project emissions are only amortized to removals on unverified GHG statements. Verified GHG statements are immutable and cannot be further updated.
Selecting the Estimated project tonnage amortization rule means that the emission will be split across all GHG statements in the Project based on the proportion of the gross sequestration that each GHG statement represents. When you create a Project component, its emissions will automatically be split across any unverified GHG statements in that Project.The calculation used to split an emission is as follows:Amortization=ProjectGrossSequestrationEstimateGHGStatementGrossSequestration
ExampleProject A has the expected lifetime gross sequestration of 10,000 tCO₂e. The Supplier creates a GHG statement which has a total gross sequestration of 5,000 tCO₂e. The Project emission being amortized is 1,000 tCO₂e.Our system would then automatically compute the following proportion of the Project emission to be applied to the GHG statement:5000 tCO₂e / 10000 tCO₂e = 0.5This means that (1,000 tCO₂e * 0.5 = 500 tCO₂e) of the Project emission would be applied to the created GHG statement. Each Removal within the GHG statement would receive an even split of this portion of the emission, as documented in the section above.
Selecting the Estimated project lifetime amortization rule means that the emission will be split across all GHG statements in the Project based on the proportion of the total project lifetime, or over 20 years (whichever is shorter), that each GHG statement represents. The 20 year amortization cap is mandated by the GHG Accounting Module. This rule uses the project start and project end dates to determine the Project lifetime. When you create a Project emission, it will automatically be split across any unverified GHG statements in that Project.
Project start and end dates must be configured manually by Isometric’s product team. Contact us if this amortization rule is not visible to you in Certify.
The function used to split an emission is as follows:Amortization=min(ProjectLifetimeDuration,20years)ReportingPeriodDuration
ExampleProject B has an expected lifetime of 2 years. The Supplier creates a GHG statement which has a total duration of 6 months which has a total size of 5,000 tCO₂e before any Project-level emissions are applied to it. The Project emission being amortized is 1,000 tCO₂e.Our system would then automatically compute the following proportion of the Project emission to be applied to the GHG statement:0.5 years / 2 years = 0.25This means that (1000 tCO₂e * 0.25 = 250 tCO₂e) of the Project emission would be applied to the created GHG statement. Each Removal within the GHG statement would receive an even split of this portion of the emission, as documented in the section above.
Selecting the Specified target date amortization rule means that the emission will be split across all GHG statements in the Project by the specified target date. When you create a Project component, its emissions will automatically be split across any unverified GHG statements based on the proportion of the Custom Time Period Duration—the time between the start of the earliest reporting period and the Specified target date—that the GHG Statement represents.The function used to split an emission is as follows:Amortization=CustomTimePeriodDurationReportingPeriodDuration
Selecting the Manual amortization rule allows you to choose the fraction of the emission that is assigned to each of the removals in your GHG statements. After choosing this setting on your project emission, attribute emissions to each removal by clicking the + Allocate button at the bottom of the Removal.
The Manual option must be selected if you wish to only allocate specific project emissions to specific removals, for example emissions linked to project areas or facilities.
Manual amortization may also be managed via the Certify API for bulk updates to emission allocations.
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