Net-Zero and Scope 3 Emissions: Increasing Life-Cycle Thinking, Including CO₂ Absorption

Abstract

Japan and many other countries, as well as many non-state actors, such as corporations, investors, local governments, have committed that they aim to achieve net zero emissions before 2050. For corporations in particular, the net-zero target includes Scope 3, and there is an urgent need to measure and reduce GHG emissions throughout the life cycle. In addition, calculation and reporting standards are being formulated for land sector and CO₂ removal, and these standards also includes scope 3. This paper outlines the issues that need to be addressed in order for companies to set net-zero targets and ensure their reduction, and the latest trends regarding these issues. In particular, the treatment of scope 3 in net zero criteria, practical calculation methods of scope 3 which enables reduction of upstream scope 3 emissions, and potential reporting guidance for land use and CO₂ removal are introduced.