Circular Economy Challenges in the Context of Greenhouse Gas Protocol

In the pursuit of reducing greenhouse gas (GHG) emissions, the measurement protocols for GHGs serve as a crucial foundation for many organizations. However, recent research has shed light on a potential drawback, suggesting that a carbon-centric focus may inadvertently lead to resource wastage, particularly when considering the principles of a circular economy.

The primary protocol used for the "scientific" measurement of GHGs is the GHG Protocol, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). Despite its widespread use, the protocol has shortcomings, notably its inability to address emissions embedded in products and services and its inadequate consideration of circular economy principles.

Presented at the 2023 Life Cycle Management Conference, a paper emphasized that the GHG Protocol tends to promote environmentally unfriendly "take-make-dispose" supply chain practices. Authors Astrid Wynne of TechBuyer and Rich Kenny of Interact highlighted the protocols failure to appropriately account for carbon content and circular economy considerations.

"While there is a strong foundation of scientifically based methodology to demonstrate costs and carbon reductions through the GHG Protocol, adopted by legislators mandating companies to report their carbon footprint, it falls short in recognizing the value of the circular economy," stated Wynne and Kenny. They underscored the absence of a globally equivalent metric to measure circular economy progress.

The protocols failure to acknowledge the value of the circular economy may incentivize companies to adhere to "take-make-dispose" practices without encouragement to adopt circular economy principles. The authors even suggested that the gap in the GHG Protocol could impede societal shifts towards a circular economy as a means to reduce carbon emissions.

As a temporary solution, Kenny proposed that carbon should be attributed to the fixed lifespan of an asset and proportionally reduced each year. This could encourage companies to extend the lifespan of servers and support circular economy practices. Additionally, the authors recommended that specific industries, such as plastics, electronics, and fashion, collaborate to establish standardized reporting methodologies that recognize the value of extending product lifespans and recycling.

While there are challenges in streamlining the GHG Protocol, Kenny remains optimistic that the system "just needs a few refinements for people to more easily see the benefits of the circular economy." Meanwhile, companies striving to prolong the life of their products for environmental benefits may have to face a decline in their official net-zero progress, but ultimately, they contribute to becoming better global citizens.