EPA GHG Reporting Rule Now Final - Significant Implications for U.S. Businesses
Now that the EPA has finalized the first-ever mandatory greenhouse gas (GHG) reporting rules (see Pace's Summary of the EPA Rule) within the U.S., it is clear that organizations must re-think their carbon accounting programs by looking to the future today. The complex GHG data and calculation requirements established by this GHG reporting regulation commence in January 2010 and current approaches implemented by most organizations are out of alignment with this rule. Here, I discuss two specific reasons to modify your current GHG accounting and energy management practices.
- Spreadsheet-based reporting will no longer be adequate: Many organizations currently track carbon and sustainability data within Excel-based spreadsheets managed by internal resources. EPA will not accept these files for annual GHG inventory reports. Rather, reporters will need to transmit GHG inventory reports, supporting data, and unit and facility information electronically via an XML format. Alternatively, reporters can manually enter completed inventory records into the EPA system, but this approach will result in duplicative efforts and is prone to error. Pace's ecolink® solution (click here: ecolink), provides the data management, GHG emission calculation, and electronic submittal capabilities organizations require to comply with the EPA GHG reporting rule.
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EPA builds an exit ramp: Facilities that reduce GHG emission through operational or energy efficiency improvements or organizational changes can avoid future reporting obligations. If a facility can prove it has reduced emissions below the 25,000 metric tonne threshold for five consecutive years or below 15,000 tonnes for three years, the owner/operator can apply to remove that facility from the program. Successful organizations will have the ability to identify, implement, and track efficiency opportunities at the rapid pace dictated by modern business conditions. Pace's ecolink® solution puts these capabilities at your fingertips in a web-enabled environment, that allows for sharing of best practices across all your facilities.
The age of regulated greenhouse gas emissions and scrutinized environmental performance is here, creating a wide range of challenges for businesses today. As organizations begin to prepare for compliance, top decision makers will quickly need to decide how best to manage these direct compliance risks along with much broader business requirements. While compliance regulation may get management's immediate attention with the advent of the EPA rule, there are strong business requirements at play from customers, investors and supply chain partners that impact every aspect of business operations. The answer: Be proactive and get a handle on your GHG emissions performance by developing an integrated carbon and energy management program that allows your organization to tie energy and carbon liabilities and opportunities to strategic business initiatives - the evolving market dynamics will demand it.