Counting Carbon Molecules in Products: Disentangling the Growing Web of Carbon Intensity Methods
This paper extends the analysis to the evolving debate on carbon accounting, its differences from greenhouse gas reporting, and how carbon intensity metrics for climate-trade policies connect to established practices in environmental product declarations and life-cycle accounting.
Abstract
This is the second Resources for the Future (RFF) working paper on interoperability of carbon intensity quantification methods. To read our first RFF paper on interoperability, see https://www.rff.org/publications/working-papers/trade-friendly-climate-policies-the-promise-of-interoperability/. This paper connects the ongoing debate on carbon accounting methods with existing practices in lifecycle accounting and environmental product declarations. A case study compares carbon intensity quantification methods across the EU carbon border adjustment mechanisms, the US Environmental Protection Agency’s labeling program, and an International Trade Commission study on steel and aluminum carbon intensities. This paper finds that there may be legitimate areas where product-level carbon intensity accounting choices may differ. Nevertheless, improved interoperability could still be possible by discussing and recognizing trade-offs between physical properties and policy incentives.
