GIIGNL held its 2nd workshop on carbon-neutral LNG recently, focusing on carbon offset mechanisms and standards.
The key takeaways included:
Independently verified carbon credits can offset CO2 emissions when emissions are not possible to abate
Proper detection and quantification of emissions combining top-down and bottom-up approaches is needed
Carbon intensity can vary by a factor of at least 3 between different supply projects
Carbon cost increases the delivered cost of LNG but does not necessarily change the merit-order of different LNG supply sources
Natural climate solutions/nature-based offsetting solutions are gaining ground but carbon credits can be generated from a wide-range of projects (in renewables, energy efficiency, methane capture…)
Carbon removal projects contribute to several of the UN SDGs, beyond the simple carbon footprint reduction (biodiversity, water, communities…) and can be linked to broader CSR/ESG themes
Not all carbon offsets have the same environmental or social value (nor price)
Buyers and suppliers should work together to develop certification and enhance confidence in carbon-neutrality claims
Source: GIIGNL
