Climate impact is now a crucial issue in project development. Whether building a business park, setting up a photovoltaic plant, or renovating a major road, project developers are increasingly required to assess and reduce their greenhouse gas (GHG) emissions. This process involves carrying out a project carbon impact assessment.
While some regulations such as the Environmental Impact Assessment (EIA) Directive 2014/52/EU of the European Union list the project concerned by such assessments, this article focuses on what a carbon impact assessment is, what it is used for, and how to carry it out effectively.
What is a project carbon impact assessment ?
A project carbon impact assessment is a methodological process aimed at quantifying, from the design stage, the GHG emissions generated by a project throughout its life cycle, as well as any potential emissions reductions enabled by its implementation. It is part of the broader framework of environmental impact assessments and supports decision-making by integrating climate considerations.
Why is it important to include carbon impact in the environmental study of your project ?
Integrating carbon impact from the design phase helps guide technical choices, promote low-emission options, and anticipate regulatory requirements (such as the European Climate Law 2021/1119/EU, CSRD, etc.). It also improves the project’s social acceptability and can streamline its administrative review.
Appropriate methodological frameworks for a carbon assessment
At the international level, the ISO 14064-2:2019 international standard provides specifications and guidance for quantifying and reporting GHG emissions and reductions at the project level.
Some countries have developed specific methodological frameworks, like France with its ADEME methodological guide (2022) which outlines how to include GHG emissions in environmental impact studies in France.
Key principles to follow
- Project boundaries: Clearly define the physical, temporal, and functional limits of the project.
- Comparative scenarios: Compare the project’s emissions with one or more reference scenarios (“do nothing” and alternative solutions).
- Life cycle approach: Consider all project stages, including manufacturing, distribution, equipment installation, operation, and end of life.
- Traceability and transparency: Document all assumptions, data sources, and calculation methods.
How to conduct a project carbon impact assessment ?
In line with ISO 14064-2:2019, a project GHG assessment is structured around the following key steps:
Step 1: Define the project and its objectives
- Describe the project and its expected impact on GHG emissions.
- Clarify the GHG objectives (avoidance, reduction, sequestration).
- Identify relevant stakeholders and reporting needs.
Step 2: Establish the baseline scenario
- Define a credible baseline scenario representing what would likely happen in the absence of the project.
- Ensure the scenario reflects realistic technological, economic, and regulatory conditions.
- Use this as a reference point to quantify the project’s additional GHG impact.
Step 3: Define the boundaries and quantification methodology
- Determine organisational, operational, and temporal boundaries.
- Identify relevant gases, sources, and sinks.
- Select a quantification approach: project-specific data, default emission factors, or modeling.
- Use recognised databases such as Ecoinvent.
Step 4: Quantify GHG emissions and removals
- Collect activity data for both the project and baseline scenarios.
- Apply appropriate emission or removal factors.
- Calculate gross and net GHG changes over the defined period.
Step 5: Assess uncertainty and risks
- Identify key assumptions and data limitations.
- Evaluate the level of uncertainty in the estimates.
- Document any mitigation strategies for uncertainties.
Step 6: Document and report results
- Prepare a transparent report detailing the methodology, data sources, assumptions, and results.
- Include estimates of reductions or removals achieved by the project.
- Ensure consistency with ISO 14064-2 reporting requirements.
Step 7: Verification and validation (optional but recommended)
- Consider having the project assessment independently verified by a qualified third party.
- This enhances credibility and may be required for participation in carbon markets or funding mechanisms.
What are the expected benefits of a project carbon impact assessment ?
Improved environmental performance
By identifying the main action levers, a carbon impact assessment enables significant emission reductions for the project.
A decision-making tool
It helps project owners make informed choices to reduce GHG emissions. Other environmental, technical, or financial constraints should also be considered.
A contribution to local planning
Carbon assessments support local authorities in integrating climate impact into their development strategies, aligned with carbon neutrality goals.
Key points to bear in mind when carrying out a project carbon impact assessment
A project carbon impact assessment is a strategic analysis tool. Beyond regulatory compliance, it enables stakeholders to design projects that are aligned with planetary boundaries and international climate targets.
Do you want to assess the carbon impact of your project ?
With dozens of project carbon footprint studies carried out, PINK Strategy’s experts are here to guide you through the process !