After an organization knows how much GHG emissions it generates, the next question is:

“How much emissions have we successfully reduced through an action or project?”

This question takes us from emissions management at the organizational level to managing emission reductions at the project or mitigation action level.

This is where ISO 14064-2 plays an important role. ISO 14064-1 focuses on the inventory and reporting of emissions and removals at the organizational level. In contrast, ISO 14064-2 focuses on the quantification, monitoring, and reporting of GHG emission reductions or increased removals at the project level.

According to ISO, ISO 14064-2:2019 remains the current edition and was confirmed in 2024.

What Is ISO 14064-2?

ISO 14064-2:2019 provides principles, requirements, and guidance at the project level. It covers GHG project planning, identification of sources, sinks, and reservoirs (SSR), establishment of a baseline scenario, monitoring, quantification of emission reductions or increased removals, documentation, reporting, and data quality management.

In other words, ISO 14064-2 helps answer the following question:

“If a mitigation action is implemented, how much GHG emission reduction can the project achieve compared with the condition without the project?”

ISO 14064-1 vs ISO 14064-2

Both standards belong to the ISO 14064 family. However, they focus on different levels of GHG management.

ISO 14064-1

ISO 14064-1 focuses on: ORGANIZATION

Examples include companies, factories, offices, institutions, and corporate groups.

Its purpose is to prepare and report an organizational GHG inventory.

ISO 14064-2

ISO 14064-2 focuses on: PROJECT / MITIGATION ACTION

Examples include renewable energy projects, energy efficiency projects, technology replacement, methane capture, waste-to-energy, reforestation, carbon capture, and other actions that result in emission reductions or increased removals.

In addition, ISO provides examples such as anaerobic digestion facilities for methane capture, reforestation projects, and carbon capture and storage as projects that organizations can assess using ISO 14064-2.

Why Is the Baseline So Important?

One of the key concepts in ISO 14064-2 is the baseline scenario.

Organizations cannot calculate emission reductions simply by comparing:

Emissions Before the Project vs Emissions After the Project

Instead, the key question is:

“How much emissions would likely occur if the mitigation project were not implemented?”

This condition provides the basis for establishing the baseline.

In simple terms:

Baseline Emissions − Project Emissions = GHG Emission Reduction

For example, a company replaces its boiler technology with a lower-emission technology.

Without the project:

Baseline = 100,000 tCO₂e/year

After the project:

Project Emissions = 70,000 tCO₂e/year

Therefore, the simplified calculation is:

Emission Reduction = 30,000 tCO₂e/year

However, the company cannot automatically claim the 30,000 tCO₂e figure as a certifiable emission reduction.

The baseline, project boundary, data, methodology, monitoring, and calculations must first meet the applicable requirements.

Project Boundary and Emission Sources

For a mitigation project, the organization needs to clearly define which activities are included in the project, which emission sources are relevant, which sinks or reservoirs are relevant, which emission sources are outside the project boundary, which data must be monitored, and how changes in emissions will be calculated.

This approach helps ensure that the emission reduction calculation is neither too broad nor too narrow.

As a result, a clearly defined project boundary allows the party conducting validation or verification to understand what the project actually claims.

Monitoring: Emission Reductions Cannot Be Based on Estimates Alone

Once the project starts, the organization needs to monitor actual data.

For example, an energy efficiency project may monitor fuel consumption, production, operating hours, electricity consumption, equipment capacity, operating parameters, and emission factors.

The organization can then use these data to calculate the project’s actual performance.

Therefore, a monitoring plan is an important part of project development.

Without effective monitoring, a company may find it difficult to demonstrate whether the claimed emission reductions actually occurred.

From ISO 14064-2 to Carbon Projects

ISO 14064-2 is also highly relevant when a company wants to develop a GHG mitigation project and have its emission reductions assessed or certified under a particular program.

However, ISO 14064-2 itself is a programme-neutral standard.

Therefore, when a project follows a specific GHG program or scheme, the organization must also meet that program’s requirements in addition to the requirements of ISO 14064-2.

In other words:

ISO 14064-2 ≠ A Specific Carbon Credit Scheme

ISO 14064-2 provides a technical framework for project-level GHG quantification, monitoring, and reporting.

Meanwhile, specific programs may have additional requirements related to eligibility, methodology, validation, verification, issuance, and registry.

Relationship Between ISO 14064-2 and ISO 14064-3

If ISO 14064-2 helps answer:

“How does a project quantify and report its emission reductions?”

Then ISO 14064-3 helps answer:

“Can the emission reduction claim be trusted?”

ISO 14064-3 provides principles and requirements for the validation and verification of GHG assertions.

In simple terms:

ISO 14064-2: Project design → Baseline → Monitoring → Quantification → Reporting

↓

ISO 14064-3: Validation / Verification

↓

Credible GHG Assertion

ISO 14064-2 and Mitigation Actions in Indonesia

The concept of ISO 14064-2 is also highly relevant to the development of mitigation actions in Indonesia.

For example, under the Indonesian GHG Emission Reduction Certification Scheme (SPEI), the scheme is stated to align with the latest version of SNI ISO 14064-2.

The SPEI process includes DRAM preparation, DRAM validation, implementation and monitoring of mitigation actions, LCAM preparation, LCAM verification, and SPE-GRK issuance.

Therefore, the project-level GHG quantification concept in ISO 14064-2 is highly relevant to mitigation actions and emission reduction certification in Indonesia.

What Needs to Be Prepared?

For companies planning to develop a mitigation action, several important aspects need to be prepared:

1. Project Description: Describes the activities and technologies used.

2. Project Boundary: Defines the activity boundaries and relevant emission sources.

3. Baseline Scenario: Defines the condition used as the reference.

4. Quantification Methodology: Defines how the organization will calculate emission reductions.

5. Monitoring Plan: Defines the parameters to monitor and the monitoring frequency.

6. Data Management: Ensures data quality, consistency, and traceability.

7. Reporting: Documents project implementation results and emission reductions.

8. Validation & Verification: Prepares the project for assessment by an independent party according to the applicable scheme.

From “Taking Action” to “Proving Emission Reductions”

Implementing an environmentally friendly project does not automatically mean that the organization can prove its emission reductions.

For example, companies may take actions such as installing solar panels, replacing boilers, improving energy efficiency, using lower-emission fuels, capturing methane, or carrying out reforestation.

However, the next question remains:

How much emissions have actually been reduced?

More importantly:

Can the organization measure, monitor, report, and verify the reduction?

This is where the ISO 14064-2 approach becomes important.

Conclusion

ISO 14064-2 takes GHG management from the question:

“How much emissions does the company generate?”

to:

“How much emissions have been reduced through a specific action?”

Through an approach based on baseline, project boundary, monitoring, quantification, reporting, and data quality, an organization can develop a mitigation action into a measurable and accountable GHG project.

Ultimately:

Measure the Project, Quantify the Reduction, Monitor the Performance, Verify the Result.

In carbon management, taking mitigation action is the first step.

Proving the results of the emission reduction is the next step.

Strengthen Your Mitigation Actions and Emission Reduction

Ensure that emission reductions from your project are measurable, documented, and verifiable in accordance with applicable standards.

CBQA Global provides GHG Project Validation & Verification services to support the credibility of your mitigation projects.

Contact CBQA Global:

Email: info@cbqaglobal.com
Marketing Email: marketing.cbqaglobal@gmail.com
WhatsApp: 08118468777
Phone: +62 21 2781 4200

CBQA Global. We Inspire in Trust.
Certification | Audit | Training | Sustainability