Methodology Alignment
Last Updated: 2025-10-10
Critical global initiatives focus on the academic and theoretical foundations of avoided emissions. We make these frameworks actionable. Koi is scalable, production-ready software used by enterprises, investors, and innovators making real-world decisions.
Since 2018, Rho Impact has helped shape some of the world's most trusted tools and methodologies for forecasting the climate impact of emerging technologies. Avoided emissions (also known as emissions reduction potential) are quickly becoming the most consistent and robust way to evaluate how investments and technologies will reduce emissions.
As this field evolves, it is important to understand the distinctions among the various frameworks, methodologies, industry perspectives, and issued guidance. Below is a summary of the key approaches we are most closely tracking, integrating, and aligning with. We are proud to contribute to many of them. Koi is the only product available to implement these at scale.
Major Methodology Alignment
Koi aligns the critical elements of these methodologies, providing a unified approach for use at scale.
| Emissions Intensities | Per Unit Reduction | Industry Application Selection | Market Definition | Adoption Rate | |
|---|---|---|---|---|---|
| Koi | |||||
Koi natively handles these critical elements of Avoided Emissions modeling standards. | |||||
| Methodologies & Standards | Koi Compatible |
|---|---|
| WBCSD | |
| Project Frame | |
| Mission Innovation | |
| GFANZ | |
| CDP ECT | |
| Mirova/Robeco AEFDi AEP | |
| Climate Dividends | |
| Carbon Trust | |
| GIC-Schroder | |
| Goldman Sachs Carbonomics | |
| ICE | |
| PCAF | |
Koi is aligned to essential elements of these major Avoided Emissions standards, frameworks, & best practices. | |
The landscape for avoided emissions methodologies is still evolving, with standards and best practices from major actors such GHG Protocol under active development. Some of the most widely used methodologies—Project Frame and WBCSD—are generally methodologically aligned, but differ primarily due to the maturity of solutions they target and their intended audiences. For a detailed comparison, see their Guide for Investors and Businesses.
Notably, Project Frame and WBCSD's different target audiences result in differences in their approach to market sizing and solution categorization + eligibility. Koi is agnostic to these distinctions: market data can accommodate both backward-looking product deployment records and forward-looking market forecasts, supporting a wide range of use cases and reporting needs. Koi solutions are classified by intervention mechanism (e.g., direct vs. facilitating) for the purposes of automated modeling and appropriate baseline identification. All solutions with defined mechanisms of impact and measurable physical changes to systems are eligible for Koi modeling, regardless of their classification.
Koi provides a unified approach that harmonizes these methodologies and others listed below. By offering templated calculations that are agnostic to solution classification and technology maturity, Koi enables interoperability between different audiences and use cases. The platform delivers unparalleled data breadth, while also allowing users to customize calculations with their own data when available. This makes Koi suitable for solutions as they progress through various stages of maturity, supporting both early-stage innovation and large-scale corporate adoption.
WBCSD
Last Reviewed: 2025-07-15
-Avoided emissions refer to the "positive" impact on society when comparing the GHG impact of a solution to an alternative reference scenario. An avoided emission is thus the difference between GHG emissions that occur or will occur (the "solution") and GHG emissions that would have occurred without the solution (that of the reference scenario). GHG emissions of both the solution and the reference shall be assessed throughout their entire life cycle. Unlike GHG inventory assessments, which focus on the variation of a company's inventory emissions between two points over time, avoided emissions focus on the difference in emissions between two scenarios - one associated with the solution (the one that will be taking place), and one associated with the reference scenario, calculated for a specified time interval.
Koi is highly compatible with WBCSD's guidance and reflects the recommended practices around boundary setting, baseline selection, and transparency in assumptions. We see WBCSD's work as particularly relevant for enterprises seeking to quantify product-level climate contributions in credible, investment-grade ways. WBCSD's standardized avoided emissions reporting template (linked in their Implementation Hub) can be readily populated with data and results from a Koi model.
Koi users seeking to follow WBCSD's framework set the solution scale to represent deployed climate solution units and their expected lifetime. The eligbility and classification criteria from WBCSD must also be considered during reporting; Koi is currently agnostic to these considerations and allows for modeling of any intervention.
Target group: Large corporates
Project Frame
Last Reviewed: 2025-07-15
Project Frame MethodologyAvoided emissions are defined as the "positive" impact on society when comparing the GHG impact of a solution to an alternative reference scenario where the solution would not be used. They are sometimes referred to as Scope 4 Emissions, but Project Frame does not recommend the use of this term to avoid conflation with Scope 1, Scope 2, and Scope 3 used in carbon accounting.
Koi also quantifies impact relative to an alternative reference scenario.
Project Frame's approach to quantifying GHG impact is anchored in a core equation; unit impact is multiplied by volume to produce GHG impact, which can then be multiplied by optional adjustment factors to produce adjusted GHG impact. This equation is used for each of our three types of analyses: potential impact, planned impact, and realized impact. Each serves a distinct purpose and requires a different amount of information, often depending on a solution or company's stage and the availability of a detailed sales forecast or historical data.
Koi employs the same core equation to determine impact, and is flexible to accommodate all three types of analyses.
Target group: Early-stage investors
Mission Innovation
Last Reviewed: 2025-10-06
Towards >60 Gigatonnes of Climate Innovations, Module 2Published in 2020 and led by Research Institutes of Sweden (RISE), the Swedish Energy Authority, and the Carbon Trust, this methodology provides a way of assessing avoided emissions focused on enabling solutions.
Key Metrics: Total carbon abatement (carbon abatement factor × volumes). Also attempts to have the avoided emissions account for uncertainty using the probability of success and adoption.
The methodology uses the core formula: Total Carbon Abatement = Σ (Volumes × Carbon Abatement Factor), where net avoided emissions = enabling avoided emissions - direction solution emissions - rebound emissions. Note the synonymous use of "carbon abatement factor" with "avoided emissions factor".
This is a strong methodology that has many parallels to Project Frame, with the unique addition of consideration of success and adoption probabilities. All solutions are termed "enabling solutions" in this methodology. The framework also references a WWF Climate Solver Tool for assessing reduction potential of technologies (no longer appears to be online).
Target group: Government and research institutions
GFANZ
Last Reviewed: 2025-02-18
GFANZ MethodologyReferred to as Expected Emission Reductions (EER) this metric expresses the expected "emissions return" on a transition finance decision. Transition finance, as defined by GFANZ, includes three categories of decarbonization: climate solutions, aligned/aligning entities, and managed phaseout. The difference in emissions is calculated between two scenarios, an emissions benchmark (baseline) and a projection of the decarbonization entity's expected future emissions. Where appropriate, allocation methods are then performed to attribute a portion of an entity's EER to a financial institution.
Notes Regarding Koi Compatibility- Koi can be compatible with the allocation setting in Collections, however, we do not currently provide other allocation methods.
- We refer to everything as "avoided emissions" and "solutions" whereas GFANZ draws a distinction between climate solutions (e.g., wind power) vs. aligned/aligning entities (e.g., use of predictive maintenance robots in O&G) vs. managed phaseout (e.g., elimination of peaker plants). They then recommend different metrics for the "solution" GHG intensity in each case. The mathematical transformations are nearly the same, however, we cannot automatically model phase outs right now because of differences in how you model the "market capture" for these cases.
Target group: Medium to large financial institutions
CDP ECT
Last Reviewed: 2025-10-06
Emerging Climate Technology Initiative (ECT)Developed in collaboration with Breakthrough Energy, this framework applies to project finance investors aiming to accelerate the deployment of emerging climate technologies. Notable for its inclusion of techno-economic factors.
Key Metrics: Focused on additionality of avoided emissions and market diffusion due to catalytic capital. Included in this are reductions in green premium and catalyzed emissions reductions. Also in the framework is ERP, direct Paris-aligned finance and catalyzed Paris-aligned finance.
A true methodology in that it can be adopted and applied, the ECT framework is specifically designed for investors seeking to understand and quantify the catalytic impact of their investments in emerging climate technologies.
Target group: Project finance investors
AEP
Last Reviewed: 2025-02-21
Mirova/Robeco AEFDi Avoided Emissions PlatformAvoided emissions (AE) is used to determine a project's contribution to the low-carbon transition. It represents the delta of CO2e between the induced emission of a project and a reference scenario representing what would have happened without the project.
Koi's forecasting methodology is aligned with the AEFDi framework where applicable, and our team is represented on their Scientific Advisory Committee, contributing to ecosystem dialogue around avoided emissions adoption and implementation. The AEFDi is primarily focused on pre-calculated Avoided Emissions Factors (i.e., Unit Impacts), which Koi also provides within each complete analysis alongside the market data to calculate total avoided emissions.
Target group: Medium to large financial institutions and companies
Climate Dividends
Last Reviewed: 2025-10-06
-Climate Dividends is a standardized indicator of companies' positive contribution to global decarbonisation, corresponding to the removed or avoided emissions measured outside of a company's activity perimeter. The framework converts one ton of CO2e avoided (or removed) into extra-financial information.
Key Metrics: Avoided or removed CO2e emissions, Climate Dividends (extra-financial metric distributed to shareholders)
The Climate Dividends Protocol is the reference document to assess avoided/removed CO2e emissions and issue Climate Dividends. The initiative aims to accelerate the ecological transition by distributing a Climate Dividend to shareholders for each ton of CO2e avoided or sequestered by the company. Climate Dividends were invented to complete current climate metrics, leverage avoided emissions from a financial perspective, and truly integrate climate considerations into investment decisions.
Target group: Companies, investors, and financial institutions
Carbon Trust
Last Reviewed: 2025-02-18
Carbon Trust MethodologyAvoided emissions refer to the greenhouse gas emissions that have been 'avoided' by using a specific product or service, comparing it to a situation had the product or service not been used.
Like the above methodologies, the key to this approach is comparing emissions between a low-carbon scenario and a counterfactual scenario without intervention.
GIC-Schroder
Last Reviewed: 2025-10-06
A framework for avoided emissions analysisAvoided emissions framework from Schroders' sustainable investment team in collaboration with Singapore's sovereign wealth fund GIC. Baseline is the low carbon future in which technologies were not deployed. Based on a proprietary systematic value chain approach and built for direct application to investment analysis.
Key Metrics: Absolute avoided emissions, avoided emissions per $ spent on product, "adjusted scope 1 + 2 + 3" using the avoided emissions activities.
The framework examined 19 carbon-avoiding activities and industries, and quantified the emission savings for each dollar of revenue (tCO2e/US$m). Schroders' proprietary tool SustainEx has incorporated this Avoided Emissions framework which, alongside Scope 1, 2 and 3 emissions, enables an integrated, measurable view of investments and portfolios' overall environmental impact.
Goldman Sachs Carbonomics
Last Reviewed: 2025-10-06
Carbonomics: Affordability, Security and InnovationCarbonomics provides analysis of investments in different climate technologies, showing that some of the carbon-intensive industries are under-invested in (e.g., marine shipping, mining and metals, oil and gas producers).
Key Metrics: Focused on top-down capital flows into green innovation. Carbon abatement cost at the sector and technology group level.
GC Sustain is also mentioned in GFANZ, which is an ESG framework used to identify companies with strong ESG positioning to manage risks.
ICE
Last Reviewed: 2025-10-06
From Climate Risk to Climate Opportunity: The Concept of Avoided EmissionsTo raise awareness and understanding of the Avoided Emissions concept, ICE and Ecofin Advisors Limited published a whitepaper explaining the concept and detailing a framework to quantify Avoided Emissions for individual companies within investment portfolios.
PCAF
Last Reviewed: 2025-10-06
New guidance and methods for public consultationPrimarily focused on financed emissions tracking and reporting in alignment with the GHG Protocol, with its Standard formally recognized by the Protocol. Recent guidance expands to include financed avoided emissions and forward-looking metrics such as Expected Emissions Reductions (EER).
Key Metrics: Financed emissions (across seven asset classes), financed avoided emissions (optional, across all asset classes), forward-looking metrics (e.g., EER)
The seven asset classes are: listed equity and corporate bonds, business loans and unlisted equity, project finance, commercial real estate, mortgages, motor vehicle loans, and sovereign debt. Facilitated and insurance-associated emissions remain outside current scope but may be included in future updates.
For a comprehensive list of avoided emissions assessment frameworks and methodologies, see the appendix of Avoided Emissions & Climate Investing: A Guide for Investors and Businesses.