Indirect Emissions: A Comprehensive Guide to Their Legal Meaning

Definition & Meaning

Indirect emissions refer to greenhouse gas emissions that occur as a result of an entity's activities but are produced outside its organizational boundaries. This includes emissions from sources such as electricity generation, steam production, and hot or chilled water used by the entity. Understanding indirect emissions is crucial for organizations aiming to assess their overall environmental impact and implement effective sustainability practices.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A manufacturing company uses electricity from a local power plant. The emissions produced by that power plant, due to the company's electricity consumption, are classified as indirect emissions.

Example 2: A university purchases chilled water for its cooling systems. The emissions from the facility generating that chilled water are considered indirect emissions for the university. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Regulations on Indirect Emissions
California Strict reporting requirements under the California Global Warming Solutions Act.
New York Encourages voluntary reporting through the Climate Leadership and Community Protection Act.
Texas Less stringent regulations, focusing primarily on direct emissions.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Direct emissions Emissions from sources that are owned or controlled by the entity. Direct emissions occur within the organizational boundary, while indirect emissions do not.
Scope 1 emissions Another term for direct emissions from owned or controlled sources. Scope 1 is focused on direct emissions, whereas indirect emissions fall under Scope 2 and Scope 3.

What to do if this term applies to you

If you are responsible for managing an organization's emissions, consider the following steps:

  • Identify all sources of indirect emissions related to your operations.
  • Use available tools and resources to calculate these emissions accurately.
  • Explore US Legal Forms for templates that can assist in reporting and compliance.
  • If the situation is complex, consult with a legal professional for tailored advice.

Quick facts

  • Typical emissions sources: Electricity generation, steam production.
  • Reporting requirements vary by state.
  • Indirect emissions can be a significant part of total emissions.

Key takeaways