Why is Greenhouse Gas Accounting Necessary?

This page has been prepared to provide objective information about greenhouse gas (GHG) accounting and the ISO 14064 and ISO 14067 standards. Consistent, transparent, and comparable measurement and reporting of greenhouse gas emissions are becoming increasingly crucial for exports, corporate sustainability reporting, and regulatory compliance.

Service note: AES Innovation carries out the EU compliance work described on this page (PPWR, digital product passport, CBAM, etc.) in collaboration with expert solution partners; it does not provide these services directly. These activities are outside the scope of our accreditation (EU-0631-M).

For Turkish manufacturers exporting product groups such as iron and steel, cement, and aluminum to the European Union, the EU Border Carbon Adjustment Mechanism (CBAM) provides a direct justification. In addition, investor expectations, supply chain demands, and corporate climate goals also lead organizations to monitor their emissions.

  • Access to export markets: Embedded emissions reporting obligation for exports to the EU.
  • Corporate reporting: data-driven sustainability and climate declarations.
  • Supply chain pressure: customer demand for carbon data on a product basis.
  • Risk management: forecasting carbon costs and identifying reduction opportunities.

ISO 14064 Family: Scope of Three Parts

The ISO 14064 standard consists of three parts that provide a framework for quantifying, reporting, and verifying greenhouse gas emissions. Each part addresses a different level and complements the others.

  • ISO 14064-1: Defines the principles and requirements for the design, development, and reporting of greenhouse gas inventories at the organizational level; forms the basis for an organization's carbon footprint.
  • ISO 14064-2 covers the requirements for quantifying, monitoring, and reporting emission reductions and removals at the project level.
  • ISO 14064-3: Defines the principles, requirements, and guidance for the validation and verification of greenhouse gas declarations; used by independent organizations.

ISO 14067: Product Carbon Footprint

ISO 14067 sets out the principles and requirements for quantifying and reporting a product's carbon footprint. Unlike ISO 14064-1 at the enterprise level, ISO 14067 focuses on a single product and is based on the life cycle assessment (LCA) method; it is compatible with ISO 14040 and ISO 14044.

The scope of a product carbon footprint study is determined by the study's objective. Common approaches include cradle-to-gate, covering raw materials to factory output, and cradle-to-grave, encompassing the product's use and disposal phases. In the context of CBAM, embodied emissions accounting, focusing primarily on the production phase, is often emphasized.

Scope 1, 2 and 3 Emissions

Emissions are classified into three categories based on their source. This classification is also consistent with the GHG Protocol (Greenhouse Gas Protocol) and is commonly used in ISO 14064-1 reporting.

  • Scope 1 (direct): Direct emissions from sources owned or controlled by the organization (e.g., fuel combustion, process emissions).
  • Scope 2 (indirect – energy): Indirect emissions resulting from the production of purchased electricity, heat or steam.
  • Scope 3 (other indirect): Other indirect emissions in the value chain, such as supply chain, purchased goods and services, transportation, and product use.

Relationship with GHG Protocol

The GHG Protocol is the most widely used international reporting framework for greenhouse gas accounting and has popularized the Scope 1/2/3 concept. ISO 14064-1 and the GHG Protocol are compatible and largely complementary tools; many organizations prepare their inventories considering both frameworks together.

This content is for informational purposes only; determining the appropriate reporting framework, scope, and calculation methodology for your organization requires evaluating project-specific conditions.

CBAM: EU Border Carbon Adjustment Mechanism

The CBAM (EU Border Carbon Adjustment Mechanism) was established by Regulation (EU) 2023/956. The mechanism requires the calculation and reporting of embedded emissions for products imported into the EU. This makes it a practical necessity for Turkish manufacturers exporting to the EU to produce reliable emission data on a product-by-product basis.

The six sectors covered by CBAM are iron and steel, cement, aluminum, fertilizers, hydrogen, and electricity. Producing accurate, traceable, and verifiable emission data for exporters is fundamental to compliance with the mechanism. For specific obligations and current rates, the applicable EU legislation and implementing principles should be followed; no numerical emission values or rates are given on this page.

  • Covered sectors: iron and steel, cement, aluminum, fertilizers, hydrogen, electricity.
  • Focus: Calculation and reporting of embodied emissions of imported products.
  • Basis: EU Regulation (EU) 2023/956 and related implementing regulations.

The Difference Between Verification and Validation

ISO 14064-3 defines two different types of independent assessments. Verification focuses on historical data; it is the confirmation of a realized greenhouse gas declaration at a certain level of assurance. Validation, on the other hand, is the assessment of whether forward-looking forecasts, plans, and projections are reasonable.

Independent verification of greenhouse gas declarations is carried out by verification bodies accredited according to ISO 14065 by accreditation bodies such as TÜRKAK. ISO 14065 defines the competence and impartiality requirements of these organizations. Verification and carbon footprint analysis are separate activities carried out by parties with different areas of expertise.

Steps the Organization Must Follow

The following steps are for general informational purposes only; each organization should adapt them to its product range, processes, and target market.

  • Defining the purpose and scope: it is clarified whether the target is an organizational inventory (ISO 14064-1) or a product carbon footprint (ISO 14067).
  • Boundary definition: Scope 1/2/3 boundaries or lifecycle boundaries (cradle to door/grave) are defined for the product.
  • Data collection and calculation: activity data is collected and quantified using appropriate emission factors.
  • Internal quality control: data consistency, traceability, and documentation are ensured.
  • Independent verification: If necessary, a verification/validation process is planned with a verification body accredited according to ISO 14065.
  • Improvement: opportunities for reduction are identified and reporting is updated regularly.

Information Note

AES is NOT a greenhouse gas verification or certification body; it does not issue ISO 14064/14067 verification or carbon footprint certificates. Greenhouse gas verification is carried out by TURKAK accredited ISO 14065 verification bodies.

AES is accredited by TÜRKAK only as a Type A inspection body and in the field of '6.1 Electrical Installation'; the content on this page is not limited to this accreditation and provides general information only.

This content is for informational purposes only and is based on authorized engineer technical assessment. For obligations specific to your organization, applicable legislation and accredited verification bodies should be followed.

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Frequently Asked Questions

What is the main difference between ISO 14064 and ISO 14067?

ISO 14064-1 addresses greenhouse gas inventory at the organizational level; ISO 14067 quantifies the carbon footprint based on the life cycle of a single product. One focuses on the entire organization, the other on a specific product. This is an informational summary.

What do Scope 1, 2, and 3 emissions mean?

Scope 1 refers to the organization's direct emissions, Scope 2 to indirect emissions from purchased energy, and Scope 3 to other indirect emissions in the supply chain and value chain. This distinction is consistent with the GHG Protocol.

Which sectors does CBAM cover?

The EU Border Carbon Adjustment Mechanism (CBAM), under Regulation (EU) 2023/956, covers the iron and steel, cement, aluminum, fertilizer, hydrogen, and electricity sectors. Current obligations should be monitored in accordance with applicable EU legislation.

What is the difference between verification and validation?

Verification is the confirmation of greenhouse gas declarations based on past, actual data; validation is the assessment of the reasonableness of future forecasts and plans. Both are defined in ISO 14064-3.

Does AES issue greenhouse gas verification or carbon footprint certificates?

No. AES is not a greenhouse gas verification or certification body and does not issue ISO 14064/14067 verification or carbon footprint certificates. Greenhouse gas verification is carried out by TÜRKAK accredited ISO 14065 verification bodies. This page is for informational purposes only.

Where should a Turkish exporter start for CBAM?

In general, the process involves defining limits for target products, collecting operational data, calculating embodied emissions using appropriate methods, and, where necessary, working with an accredited verification body. Site-specific assessments should be conducted within the framework of a qualified engineer's technical assessment.