FAQ

Carbon Measures is a global coalition representing major businesses from diverse industries and geographies establishing a more accurate carbon accounting framework and driving market-based solutions to reduce emissions at the lowest cost.

Carbon Measures is calling for new policy that unlocks innovation, competition and the power of the market. Product-level carbon intensity standards, based on verifiable data informed by an enhanced emissions accounting framework, can create markets in which businesses are rewarded for investing in low-carbon production.

A full list is included on our Membership page

A product-level carbon intensity standard sets a maximum level of emissions allowed per unit of a product – for example, CO₂ per tonne of steel or per watt of electricity. It’s a mandatory standard that all producers selling into a market must meet. 

Governments can make the standard stricter as technology improves, contributing to systematic decreases in allowed carbon emissions per unit of a product – and by proxy, carbon emissions at large, while meeting demand.

Product-level carbon intensity standards level the playing field, reward innovation, and ensure progress is real and measurable. 

Carbon accounting moves beyond reporting and disclosure of enterprise-level actions, to a verified system for calculating carbon emissions associated with products, companies, and countries. Similar to financial principles, it tracks where emissions come from by entity and how much is produced as they create their products.

Like financial principles that require an asset or liability to be only held by one organization at a time, a good carbon emissions framework ensures every tonne of carbon is counted once, accurately, and attributed to the right place. 

A ledger system enables companies and suppliers to accurately calculate and track carbon emissions of their product at each step of its lifecycle. Just as a standard accounting practice assigns the cost of materials and overhead to a finished product, carbon ledgers assign and keep track of the emissions of various outputs to the correct product. This allows for the associated carbon to follow the asset through the product lifecycle.

For example, the total emissions to make and transport each part of a car are transferred to the emissions value of the finished car – avoiding double counting and gaps in emissions.

We should apply a consistent carbon accounting framework globally to ensure a common understanding of emissions. Countries or regions would set their own product-level carbon intensity standards for products sold there—creating a level playing field for many different kinds of innovation for those who choose to sell in that market.

An important first step is being global from the onset. Carbon Measures will be purposeful in bringing on members from around the world, to engage through global policymaking processes like COP to ensure global support is built alongside the development of the framework.

We believe a globally consistent carbon accounting framework will ensure a common understanding of emissions. With that underpinning, each jurisdiction would set its own product-level carbon intensity standards for products sold within its borders.

Starting with key industrial products that collectively account for the majority of global emissions - such as electricity, fuel, steel, concrete and chemicals - will enable real progress.

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Affordability is a critical factor in the adoption of lower-carbon solutions, because many of these solutions are more expensive than what’s currently available. However, affordability improves over time as technology advances reduce costs. Markets need a way to quantify both the emissions and costs of alternatives to drive the lowest-cost transition pathway for society.