MfE's Guide on Measuring Emissions 2024
The Ministry for the Environment has released their 2024 guide on emission factors. We’d like to offer some thoughts on when to start using the 2024 emission factors.
The Ministry for the Environment | Manatū mō te Taiao (MfE) has released the 2024 measuring emissions guide for organisations. This is the primary source of activity-based emission factors for Aotearoa New Zealand.
The key changes are outlined on pages 9 -10 of the detailed guide. There are no surprises, but many reporters were hoping for guidance from MfE on the suitability (or not) of using an ETS Unique Emission Factor for landfills for Scope 1 emission reporting.
MfE’s outline of the changes to the previous edition.
When should I start using the MfE 2024 emission factors?
In this post we discuss a basic but critical issue which is when you should start using the 2024 factors. The timing of the release of the updated factors creates a dilemma for many reporters. There are reporters’ mid-measurement, some are finalising their FY24 measurement now and some reporters are in an assurance process.
The MfE guide does not provide any guidance on when to start using the factors, and the emission factors workbook creates some confusion within the headings. An example is the ‘Working from home’ worksheet, which states in row 2, ‘Emission Factor Workbook using Data and Methods from the 2023 Calendar Year’, the Travel worksheet states ‘…the most recent available year’ and Wastewater treatment ‘…the 2022 Calendar Year’.
Many reporters will think that it makes sense to apply the updated factors for the next measurement period from the date of publication i.e. FY25. However, the issue is that MfE has released a 2023 emission factor for electricity and transmission and distribution losses as well as changes for both factors back to 2010. An FY24 reporter would be using the 2022 emission factor and now the more relevant 2023 factor is available.
We've collated some tips on how to go about this:
Firstly, make sure you are accessing the most recent version of the documents. They were first released on 31 May 2024, but a number of the documents were updated on 6 June 2024. We recommend that you visit the MfE website regularly to check for updates.
Consider the intended use/users of the inventory. If using a certification programme, it would be highly likely that they will advise from what date the 2024 factors apply; a measurement software that incorporates the factors will advise what date the factors will be available to use in their system; and a compliance programme or annual report auditor may have a view or specific requirement.
As for the electricity updates, in the absence of any confirmed requirements, we recommend you answer these two questions: 1) Is the 2023 electricity and transmission loss emission factor change material to the current inventory? and 2) Does the change to the 2010 to 2022 factors trigger a base year recalculation and update of historic inventories in line with your base year recalculation policy? If the answer is yes, then it is recommended to use the updated 2024 emission factors.
What does this mean for assurance?
McHugh & Shaw or another assurance provider will review the selection and justification for emission factors during the assurance process. We will then assess the impact of the emission factor changes on the inventory, including the previous reporting periods.
There may be situations where a measurement software provider cannot update emission factors before the assurance work is completed, and this will be noted in the final assurance statement issued.
Last updated July 2024