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Carbon Breakdown

Carbon Breakdown

We break down the Carbon equivalent emission at a granular level to analyze the composition of various greenhouse gasses in the total carbon emissions. To identify companies that greatly emit harmful gasses such as Methane and Nitro oxide.

We break down the Carbon equivalent emission at a granular level to analyze the composition of various greenhouse gasses in the total carbon emissions. To identify companies that greatly emit harmful gasses such as Methane and Nitro oxide.

Overview

Global carbon equivalent emissions are primarily made up of Carbon Dioxide, Methane and Nitro Oxide. Each gas has a different Global Warming Potential (GWP), which shows its ability to warm the planet. The US's Environmental Protection Agency states that Carbon Dioxide has a GWP of 1 where as Methane has a GWP of 28–36 and Nitro Oxide has a GWP of 265–298 (Understanding Global Warming Potentials | US EPA, 2021). The larger the GWP, the more that a given gas warms the Earth compared to Carbon Dioxide over that time period. We have broken down carbon emissions into these major components through the Carbon Breakdown model.

This model gives our clients insights on how carbon emissions are generated by each company, and what the relevant composition of these harmful gasses is, in the overall carbon emissions of a company. 15Rock allows investors to do carbon comparison at a granular level, explaining the real impact of the bigger carbon emission's number.  Climate science has established Methane and Nitro Oxide are far more harmful than carbon dioxide, by having a further breakdown of each company's carbon emissions, investors can make environmentally friendly decisions which have longer term effects on climate.

{US EPA. 2021. Understanding Global Warming Potentials | US EPA. [online] Available at: https://www.epa.gov/ghgemissions/understanding-global-warming-potentials }

Design and Modeling

Background

  • Carbon Emission are reported in Carbon equivalent units, emissions are made in forms of various gases but they are then converted to their carbon equivalents by using their predetermined scientific Emission Factors
  • Scope 1 Emission constitute from three major sources
  • Scope 1 emissions comprise a company’s own direct emissions from its coal or natural-gas power plants, cement kilns, steel furnaces or trucks.
  • Stationary combustion (SC)
  • Coal and coke
  • Petroleum products
  • Natural Gas
  • Coal
  • Biomass fuels
  • Renewable energy (nuclear, hydro)
  • Mobile combustion (MC)
  • Gasoline
  • Diesel
  • Jet fuel
  • other petroleum products
  • Refrigerants
  • Refrigerants are green house gasses released into the atmosphere by the company through out its value chain. There are two broad categories of these gasses HFC and PFC. New gasses are added at each session, eg. the Montreal protocol was last session where new gasses were added to this list.
  • Major Gasses within Scope 1 Emissions
  • Carbon Dioxide (C02)
  • Methane (CH4)
  • Nitro Oxide (N20)

Inputs

Formulas

  • Calculating Compositional Ratios for SC & MC
  • weight of SC x total carbon
  • weight of MC x total carbon
  • 1 x weight of petroleum products (SC)
  • 1 x weight of natural gas (SC) = Absolute carbon emission in SC natural gas
  • 1 x weight of coal (SC)
  • 2 x into weight of petroleum (MC)
  • 3 x Carbon dioxide as % of Carbon Equivalent Emission (SC, Petroleum)
  • 3 x Methane as % of Carbon Equivalent Emission (SC, Petroleum)
  • 3 x Nitro Oxide as % of Carbon Equivalent Emission (SC, Petroleum)
  • 4 x Carbon dioxide as % of Carbon Equivalent Emission (SC, Natural Gas)
  • 4 x Methane as % of Carbon Equivalent Emission (SC, Natural Gas)
  • 4 x Nitro Oxide as % of Carbon Equivalent Emission (SC, Natural Gas)
  • 5 x Carbon dioxide as % of Carbon Equivalent Emission (SC, Coal)
  • 5 x Methane as % of Carbon Equivalent Emission (SC, Coal)
  • 5 x Nitro Oxide as % of Carbon Equivalent Emission (SC, Coal)
  • 6 x Carbon dioxide as % of Carbon Equivalent Emission (MC, Petroleum)
  • 6 x Methane as % of Carbon Equivalent Emission (MC, Petroleum)
  • 6 x Nitro Oxide as % of Carbon Equivalent Emission (MC, Petroleum)
  • TOTAL ABSOLUTE CARBON DIOXIDE IN STATIONARY COMBUSTION = 7 + 10 +13
  • TOTAL ABSOLUTE MEHTANE IN STATIONARY COMBUSTION= 8 + 11 +14
  • TOTAL ABSOLUTE  NITRO OXIDE IN STATIONARY COMBUSTION= 9 + 12 +15
  • TOTAL ABSOLUTE CARBON DIOXIDE IN MOBILE COMBUSTION = 16
  • TOTAL ABSOLUTE MEHTANE IN MOBILE COMBUSTION= 17
  • TOTAL ABSOLUTE NITRO OXIDE IN MOBILE COMBUSTION= 18
  • CARBON DIOXIDE AS % OF STAITONARY COMBUSTION = (19 / 1) X 100