Methodologies Relevant to Koi
Last Updated: 2025-02-28
The concept of avoided emissions is still evolving, with no universally accepted definition. However, significant efforts are underway to standardize it (indeed, we are core contributors to several including Project Frame). In the meantime, we are tracking the most credible and relevant methodologies as they develop.
Project Frame
Link to Project Frame Methodology
Last Reviewed: 2025-02-21
Avoided 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.
GFANZ
Last Reviewed: 2025-02-18
Referred 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 "solution"s 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.
Carbon Trust
Link to Carbon Trust Methodology
Last Reviewed: 2025-02-18
Avoided 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.