On Wednesday, the International Group of Liquefied Natural Gas Importers (GIIGNL) launched a carbon-neutral framework for the liquefied natural gas (LNG) industry.
The framework outlines several steps for global LNG traders to be able to be ruled as carbon neutral.
Firms would be required to monitor and verify their greenhouse gas emissions intensity. To be able to declare that its shipment is carbon neutral, the company has to show transparent emissions data, cut emissions at its operations.
Companies have to also use offsets for any remaining emissions for the cargo's lifecycle, including scope 3 emissions, or those generated when the customer uses the fuel. The framework did not specify which type of offset but they should meet criteria, such as being independently verified and retired from circulation once they have been used.
The aim of the framework is to encourage emission cuts primarily at a company's own operations.
At the moment, only about 30 cargoes, or less than 1% of global LNG trades have been declared carbon-neutral but not all of them include scope 3 emissions and therefore would not have been able to make that claim under the GIIGNL framework.
Looking forward, the number of trades declared carbon-neutral would grow as business entities would try to differentiate themselves through their environmental credentials.
