Carbon Trail Glossary

Your resource for carbon accounting terminology

Greenhouse Gases

January 2, 2025Shantanu Singh

What are Greenhouse Gases?

Greenhouse gases (GHG) are gases in the earth’s atmosphere, which transmit heat towards the surface of the earth as well as back to space. These gases play critical roles in moderating the climate on our planet so that life is possible. They give a rise to conditions known as the greenhouse effect, which involves trapping heat from the sun by the surface of the earth before it is reflected into the atmosphere. Some of it is retained through greenhouse gases that exclude it from escaping out of the earth’s atmosphere to space. However, excessive concentrations of greenhouse gases accelerated through human activity result in global warming and climate change.

Importance of Greenhouse Gases 

In carbon accounting, greenhouse gases have the main function of calculating the total carbon emissions of any business, country, or region. Carbon reporting is carried out on the emission of carbon from activities, and gases are known to contribute to carbon footprints. To implement the sustainability goals, key objectives of emission control, managing and minimizing GHG emissions are significant as per the local and international standards and policies inclusive of the Paris Agreement. Carbon budgets, in essence, measure and classify emissions, enabling someone to gauge the levels of CO2, CH4, N2O, and other GHGs being discharged into the air. Such records are useful in determining the extent of damage done by industries, governments, and persons to the environment.

Categories of Greenhouse Gases 

  1. Carbon Dioxide (CO2): The most commonly emitted gas in the largest quantity, mainly from the use of coal, oil, and natural gas, and from clearing tropical forests. The measurement and management of carbon is known as carbon accounting, where CO2 gets the most attention.
  2. Methane (CH4): A very effective greenhouse gas that is released during the generation and distribution of coal and oil, as well transport of natural gas. It also originates from agriculture and livestock farming, and poor disposal of wastes.
  3. Nitrous Oxide (N2O): This gas is chiefly released through such activities as farming, using machinery and equipment, transport, and burning of fuels.
  4. Fluorinated Gases: A collective of gaseous compounds synthesized by man and employed in manufacturing and related processes such as refrigeration and air conditioning. These include hydrofluorocarbons, (HFCs), Perfluorocarbons (PFCs), and Sulfur hexafluoride (SF6). They are found in small concentrations, but when present, they are dangerous, contributing to global warming.

Aspects of Greenhouse Gas Emissions in Carbon Accounts

  • Scope 1 (Direct Emissions): Emissions from sources owned or controlled by an entity, such as company-owned vehicles or factories.
  • Scope 2 (Indirect Emissions): Emissions from the generation of purchased electricity consumed by the entity.
  • Scope 3 (Other Indirect Emissions): Emissions from the value chain, including upstream and downstream activities like product transportation, waste disposal, and employee travel. .

(FAQs) on Greenhouse Gases

Q1: How do greenhouse gases affect the environment? 

A1: Greenhouse gases trap heat in the Earth's atmosphere, leading to global warming. This can cause rising sea levels, extreme weather events, and changes in ecosystems.

Q2: How are greenhouse gases measured in carbon accounts? 

A2: Greenhouse gases are measured in terms of CO2-equivalent emissions. This method converts the warming potential of other gases (like methane and nitrous oxide) into CO2 equivalents, allowing for a standardized measurement across all GHGs.

Q3: Why is carbon accounting important for businesses? 

A3: Carbon accounting helps businesses track their GHG emissions, identify reduction opportunities, and comply with environmental regulations. It also enhances their sustainability credentials and meets growing consumer demand for environmentally responsible companies.