case study: scope 3 category 11 emissions assessment
Assessment of Scope 3 Category 11 (use of sold product) emissions for an oil & gas development in light of the Finch Supreme Court Ruling.
at a glance
challenges
lack of regulatory clarity
The Finch ruling highlighted the necessity of assessing Scope 3 emissions for regulatory approvals, but specific guidance had not yet been finalised, leading to uncertainties in methodology and reporting expectations.
uncertainties in end-use estimation
Capturing a reasonable range of uncertainty across various inputs, including forecast oil and gas production for the planned development, potential end use of the hydrocarbons and utilising relevant emissions factors.
stakeholder expectations
Investors, regulators, and environmental groups are demanding greater transparency and justification for emissions disclosures in project approvals.
outcomes
sensible results
Provision of a realistic and defendable end-use emissions scenarios that fits with the fluid type and likely destination of the product.
An upstream oil and gas operator was required to assess the Scope 3 Category 11 (Use of Sold Products) emissions associated with a field development project in the UK.
This was driven by increasing regulatory scrutiny following the Finch Supreme Court ruling, which reinforced the need for oil and gas projects to disclose end-use emissions in environmental impact assessments (EIAs).
The client wanted to develop a robust, transparent emissions inventory to align with best practice, support regulatory engagement, and field development strategies.
objectives
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Develop a robust Scope 3 Category 11 emissions inventory: aligned with the GHG Protocol, and CDP and IPIECA guidance.
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Evaluate alternative scenarios: including carbon capture, energy transition pathways, and potential displacement of higher-carbon fuels.
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Compliance: Supported regulatory engagement and stakeholder communication by ensuring compliance with environmental assessments and justifications in decision-making.
steps taken
regulatory and stakeholder review
To understand the current planning applications and the client’s requirements for their planning process. Assessed the implications of the Finch ruling on EIA requirements.
data collection and emissions calculation
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Compiled and reviewed production data -past production and future forecasts - including implications of power requirements for the future development on available sales volumes.
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Analysed government data published on refining products and volumes to develop scenarios for use of sold product.
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Applied emission factors specific to the produced hydrocarbons at the client’s field, and from recognised sources (e.g., UK DEFRA, EEMS, API) to estimate total use of sold product combustion emissions.
developed multiple scenarios to assess emissions under different conditions
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UK refining average product breakdown
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Combustion of whole volume of final product
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Comparison to the UK Carbon Budget
reporting and compliance support
Via detailed and structured emissions reporting to align with client’s requirements for regulatory approvals.
results
clear emissions breakdown
Based on projected production volumes and possible end-use scenarios.
demonstration of due diligence
By assessing impacts and uncertainties in emissions from end use of the oil and gas in alignment with evolving EIA expectations.
data-driven justifications
For use in regulatory discussions and investor communications.