Measuring environmental factors

Measuring environmental factors LCA is a technique for analyzing and evaluating the comprehensive environmental impacts throughout the entire life cycle of a product or service, raw material extraction to production, then use, recycling, or disposal (meaning: birth to death).

Currently, environmental issues are a hot topic of concern, especially for businesses in the cement, iron and steel, and electricity industries. The government is implementing regulations and policies related to greenhouse gas inventory and emission reduction.

Additionally, international markets are gradually adopting carbon emission taxation regulations, such as the CBAM for the European market. For these reasons, greenhouse gas inventory is a crucial task for businesses to determine their emission levels and develop appropriate and effective emission reduction strategies.

Regarding the greenhouse gas test method, there are currently two main methods: the company-wide emission calculation method and the first product-based emission calculation method Compared with the second method, LCA Currently, it is an analytical technique using the international standard ISO 14040: 2006 that many companies choose to apply to calculate the carbon footprint of a product.

In essence, products that start at the source of raw materials until they are used up, or recycled, or disposed of produce the best quantifiable emissions, so LCA is the best measure of emissions. measures environmental factors, such as energy consumption, greenhouse gas emissions, air pollution, natural resource use and waste generation....

This allows regulators, governments and businesses as well as potential customers to have a holistic view of the impact of their products or services on the environment.

For management levels, the data they know, they can issue decrees and mechanisms to guide and require businesses to minimize negative impacts on the environment. For manufacturers, capturing product emissions is an essential element for research and development of new products, optimization of production processes, and waste reduction, cut emissions in the value chain of products. In addition, capturing the carbon footprint in each product is also one of the factors that influence customers' purchasing decisions.

Optimal and Efficient Emission Quantification Method

Currently, the market trend favors environmentally friendly products/companies, leading to an increasing demand for carbon footprint information both consumers and investors. Worldwide, many businesses are inclined to disclose the carbon footprint figures on product packaging to enhance transparency, improve market competitiveness, and help consumers make informed choices by selecting products with low environmental impact.

Alongside market and commercial factors, Life Cycle Assessment (LCA) serves as evidence for businesses to obtain various certifications and eco-labels, such as Environmental Product Declaration (EPD), or to calculate emission taxes when exporting products to certain markets like Europe (under the CBAM - Carbon Border Adjustment Mechanism).

LCA is currently an optimal and efficient method for quantifying emissions per unit of product. Manufacturing businesses, especially those exporting goods like cement, iron, steel, electricity, and fertilizers to Europe, should consider calculating integrated emissions for each commodity. This is because the deadline for submitting the CBAM report for the first time is at the end of January 2024, and the report should include: (i) Quantities of each type of commodity per unit of MW/h or ton; (ii) Total integrated emissions for each commodity type; (iii) Any carbon pricing/taxes payable in the exporting ry for the integrated emissions in imported goods, taking into ac any refundable amounts and other compensatory forms (if applicable).