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Carbon emissions reporting

Shift to mandatory reporting

In the UK, scope 3 GHG emissions, which include supply chains, are estimated to account for between 80-95% of the total GHG emissions in the value chain (Dept of Energy Report, 2023). Currently, most Scope 3 disclosures are voluntary under the government’s SECR framework, but mandatory reporting is expected to enforced by 2026. This shift to mandatory reporting is also happening internationally.


In the UK, EU, USA, and Japan, there is a shift towards mandatory Environmental Product Declaration (EPD) defined by the International Organization for Standards (ISO) 14025 as Type III declarations.  This will require detailed Life Cycle Assessments (LCAs) for many imported, manufactured, and exported goods and products, impacting import, export, transport, and distribution.  

The EU Carbon Border Adjustment Mechanism (CBAM) will also require mandatory carbon reporting. The carbon levy/tax will begin with a transition period between 2023 to 2026. Under the CBAM, in the absence of a third-party verifying the emissions data, the default value will be based on the 10% worst-performing EU producers.
Thus, accurate CO2e data would result in a lower Levy/tax. The USA CBAM ‘Clean Competition Act’ will have a similar effect to the EU CBAM.
 

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This would create a huge challenge for Small and Medium Size Enterprises (SMEs) that are not equipped, skilled, or knowledgeable about the complexity of reporting GHG emissions.

 

Naxxar’s platform will generate accurate emissions reports with a simple click, and external reporting is easily done via APIs. This makes the difficult task of carbon emissions reporting simple and easy for SMEs.

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