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Carbon emissions reporting

Shift to mandatory reporting
In the UK, scope 3 GHG emissions include the supply chains and are estimated to be between 80-95% of the GHG total value chain (Dept of Energy Report, 2023). Most Scope 3 disclosures are currently voluntary under the government’s SECR framework, but it is expected to become mandatory by 2026. The 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) as defined by the International Organization for Standards (ISO) 14025 as a Type III declaration.  This will force the import, export, transport, and distribution of goods to produce detailed LCA for many goods and products imported, manufactured, and exported. 

The EU Carbon Border Adjustment Mechanism (CBAM) will 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.


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 reporting 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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