Greenhouse Gas Inventory

The Key to Low-Carbon Development

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Climate change is the greatest global challenge of this century, and the Greenhouse Gas (GHG) inventory serves as a crucial first step in addressing it. While these gases are naturally essential for maintaining the Earth’s stable temperature, rising levels resulting from human activity have triggered various environmental crises, ranging from global warming to extreme weather events. By understanding the volume of emissions generated by a country, region, or sector, policymakers and environmental practitioners can design targeted mitigation strategies. GHG inventories have become key instruments in national and global strategies to combat climate change, including Nationally Determined Contributions (NDCs), carbon schemes, and national energy policies. Today, GHG inventories serve not only to meet Net Zero Emissions targets but also to demonstrate the environmental credibility and responsibility of both corporations and governments.

So, what is that? Greenhouse Gases?

Greenhouse gases are a group of gases capable of trapping heat in the Earth’s atmosphere. This process is known as the greenhouse effect—a vital natural mechanism that keeps the Earth warm and sustains life as we know it. Without the greenhouse effect, the Earth’s temperature would be too cold to support human, animal, and plant life. However, in recent decades, human activities have accelerated the rise in greenhouse gas concentrations in the atmosphere. This is primarily driven by:
  • Burning fossil fuels (such as coal, oil, and natural gas) for energy and transportation
  • Industrial and manufacturing activities that generate emissions
  • Intensive agriculture and livestock farming, which produce methane and nitrous oxide
  • Deforestation, which reduces nature’s capacity to absorb carbon
As a result of this increase, the Earth is experiencing abnormal warming, known as global warming. The Earth’s average surface temperature continues to rise, leading to various serious environmental impacts, including:
  • Melting of polar ice and glaciers
  • Rising sea levels
  • Changes in extreme weather patterns (floods, droughts, storms)
  • Disruption of ecosystems and biodiversity

Major Types of Greenhouse Gases

According to the IPCC AR5, the greenhouse gases most frequently measured and reported are:
Gas Type Primary Sources Global Warming Potential (GWP)
Carbon dioxide (CO₂) Fossil fuel combustion, deforestation 1x
Methane (CH₄) Agriculture (livestock), landfills, mining 25–28 times stronger than CO₂
Nitrous oxide (N₂O) Agricultural fertilization, biomass burning 265–298 times stronger than CO₂
Fluorinated gases (HFCs, PFCs, SF₆) Refrigeration industry, semiconductors, high-voltage electricity Thousands of times stronger than CO₂
Each type of greenhouse gas has a different level of global warming potential. This measure is known as Global Warming Potential (GWP), a method used to compare a gas’s ability to trap heat in the atmosphere relative to carbon dioxide (CO₂). GWP is calculated based on the amount of heat energy absorbed by one tonne of the gas over a specific period—typically 100 years. The higher a gas’s GWP value, the greater its impact on global warming. This means that even if the quantity of a gas is relatively small, if it has a high GWP value, it still contributes significantly to global warming.
Understanding greenhouse gases (GHGs) is crucial, especially given the increasingly evident reality of climate change. Measuring and managing GHG emissions serves as a starting point for:
  • Designing climate change adaptation and mitigation strategies
By calculating GHG emissions, we can devise more effective strategies to reduce them—such as improving energy efficiency, utilizing renewable energy, and protecting forest ecosystems. Without accurate emission data, implementing these strategies effectively and sustainably is difficult.
  • Meeting corporate environmental reporting obligations
GHG calculations are also a vital component in fulfilling various environmental reporting requirements. Programs and frameworks such as PROPER, ESG, ISO 14064, and sustainability reporting encourage companies to calculate and disclose their carbon footprints. These practices not only enhance corporate transparency and reputation but also aid in corporate decision-making.
  • Supporting national and global targets, such as Net Zero Emissions by 2060
GHG calculations support the achievement of national and global climate change targets. Indonesia, for instance, has committed to achieving Net Zero Emissions by 2060—a state where the GHG emissions produced are balanced by the amount absorbed back by nature. This commitment aligns with international agreements such as the Paris Agreement and the Sustainable Development Goals (SDGs).
The GHG inventory is conducted using an approach based on emission source scopes, as follows:
  • Scope 1: Direct emissions from activities controlled by the organization, such as fuel use in operational vehicles or combustion processes in factories.
  • Scope 2: Indirect emissions from the use of purchased energy, primarily electricity and heat.
  • Scope 3: Other indirect emissions from the entire supply chain, such as emissions from goods transportation, employee activities, or products used by customers.
By understanding this classification, companies can more comprehensively identify opportunities for efficiency and emission reductions. Simple Example For instance, calculating Scope 2 emissions for a sugarcane factory that sources electricity from PLN:
  • Electricity consumption: 500,000 kWh per year
  • PLN (Indonesia) electricity emission factor: 0.829 kg CO₂e/kWh (Source: Ministry of Environment and Forestry, National Grid Emission Factor 2022)
CO₂e Emissions     = Electricity consumption (kWh) × Emission factor (kg CO₂e/kWh) = 500,000 kWh × 0.829 kg CO₂e/kWh = 414,500 kg CO₂e or equivalent to 414.5 tonnes of CO₂e per year.

Why Choose Actia

We have experience in calculating Scope 1, 2, and 3 GHG emissions using an approach based on IPCC Guidelines.

We understand international frameworks such as REDD+ and NDCs, and their relationship with GHG inventories and climate change mitigation and adaptation strategies.

We have assisted various small and medium-sized enterprises in preparing reports on GHG emissions, waste, and water that align with global standards such as the GHG Protocol and CSRD/ESRS.

We specialize in translating complex regulatory language into simple, practical, and easy-to-understand guidelines for use at both the headquarters (HQ) and operational (site) levels.

Want to know your company's carbon footprint?
Contact us for technical consultation and training on standard-compliant GHG inventorying. We provide GHG emission calculation and reporting services for Scopes 1, 2, and 3 in accordance with international guidelines such as the GHG Protocol and IPCC Guidelines. Free consultation! Please do not hesitate to contact us.