Definition 1
GHG Reductions means the amount by which the [GHG Emissions OR Scope 1, 2 and 3 Emissions] [have been OR are to be] reduced during [time period] relative to a specified base year.
Drafting notes and guidance
Please note that GHG Reductions should not be confused with Avoided Emissions which represent a change relative to a counterfactual scenario in which a specific action has not been implemented. See TCLP’s glossary term Avoided Emissions.
GHG reductions can be calculated for an entire company, a contract, or a specific activity.
One way to specify whether the GHG reductions addressed by your contract relate to organisational, contract-related or activity-specific emissions is to adapt your definition of GHG Emissions so that emissions are defined as organisation, contract-related or activity-specific emissions. See TCLP’s glossary term GHG Emissions for sample wording.
Examples of GHG reductions methods include:
- replacing power generated by fossil fuels with renewable energy;
- reducing consumption of emissions-intensive products or inputs;
- avoiding damage to carbon sinks; and
- carbon capture and storage (CCS).
If the parties to a contract want to specify the technologies, practices or processes to be adopted to achieve the GHG reductions, they can include an additional definition ‘GHG Reduction Methods’.
Calculating GHG reductions
GHG reductions are calculated by comparing changes in an organisation’s actual emissions inventory over time relative to a Base Year. Organisations can establish a base year to track emissions performance consistently over the target period.