PCAF Expands GHG Accounting and Reporting Framework

• PCAF invites ideas and suggestions from financial experts and stakeholders on its newly developed methods for measuring GHG emissions.
• The consultation, which began on 3 December 2024, will run until 28 February 2025, during which parties can submit their responses online.

The Partnership for Carbon Accounting Financials (PCAF), an international collaboration of financial organisations to measure and report greenhouse gas (GHG) from their investments, seeks inputs from financial experts and other key stakeholders.

The coalition has developed new methods for measuring and reporting GHG emissions from its investments, loans, and insurance activities; the public consultation is open until 28 February 2025. These methods are part of the Global GHG Accounting and Reporting Standard.

Caspar Noach, Technical Director of PCAF, said: "This consultation is the culmination of eight months’ dedicated efforts by the working groups addressing the respective areas for methodology development identified by PCAF’s 530+ signatories a year ago. It represents an important step forward in refining global standards that promote credible and consistent data reporting across the financial sector.

"We invite all stakeholders to contribute their insights so that we can continue to strengthen our capacity to collectively drive impactful, sustainable change. Your input will be instrumental in refining PCAF’s methods and ensuring they are aligned with the changing needs of our community and sector.”

Part A of the Standard

Which are the new methods?

• Use of Proceeds Accounting: Measures emissions from funds allocated to specific activities.
• Securitised and Structured Products: Accounts for emissions related to complex financial instruments, such as asset-backed securities.
• Sub-Sovereign Debt: Tracks emissions associated with loans issued by local governments.

Part A also involves emissions reduction guidance, inventory fluctuation discussions paper, and undrawn loan commitments.

For Part A consultation, click here.

Part C of the Standard

This focuses on insurance and introduces methods for:

• Project Insurance: Emissions tied to specific insured projects.
• Treaty Reinsurance: Emissions associated with reinsurance agreements that cover various projects or risks.

For Part C consultation, click here.

Why are they important?

These methods help financial organisations measure and report the environmental impact of their projects and proceeds. They also improve transparency and accountability, supporting the sector in working towards its climate goals.

Stakeholders can submit their feedaback and ideas for bettering these methods online or via email to info@carbonaccountingfinancials.com.

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Source: PCAF