In the global energy industry, natural gas is considered the “bridge fuel” to a low-carbon future. Industry participants and some policymakers have touted the benefits of natural gas as a climate-friendly substitute for more carbon-intensive fuels, such as coal. However, this has been increasingly challenged, as the natural gas industry faces growing pressure from investors, regulators, and customers to do more to help meet climate change objectives and ESG goals.
Decarbonizing
LNG Cargoes
Carbon-neutral LNG
involves offsetting the carbon emissions from the LNG supply chain through the
purchase of carbon offsets. Carbon neutrality can only be achieved through the
offsetting of product lifecycle emissions, or all the emissions associated with
the production, transportation, and use of a specific product.
Based on the
Greenhouse Gas Protocol, which is the most widely used accounting standard,
lifecycle GHG emissions can be divided and measured according to three ‘scopes’
(Scope 1, 2 and 3):
Scope 1 emissions are direct emissions from owned or controlled sources.
Scope 2 emissions are indirect emissions from the generation of purchased energy.