The Global Carbon Council (GCC) has launched a public stakeholder consultation on its draft “Methodology for the Production of Low-Carbon Ammonia” (GCCNMT002 – GSC Version Draft V1.0 – 2025), marking a significant step toward accelerating decarbonization in one of the world’s most emissions-intensive industrial sectors.
Ammonia production—responsible for nearly 500 million tonnes of CO₂ emissions annually—is widely recognized as one of the four hardest-to-abate industrial processes. This draft methodology is among the voluntary carbon market’s first Paris Agreement–aligned approaches addressing emissions reductions in ammonia production through the use of low-carbon hydrogen.
Scope & Applicability
The methodology enables the quantification of emission reductions from switching conventional fossil-fuel-based ammonia production to low-carbon hydrogen, including:
- Hydrogen from electrolysis powered by new captive renewables
- Blue hydrogen with carbon capture and storage
- Residual hydrogen that would otherwise be vented or flared
Applicable for both greenfield and brownfield facilities, the methodology ensures alignment with Article 6.4 principles and supports host countries in operationalizing high-integrity carbon markets.
Key Features of the Draft Methodology
The methodology has been designed to uphold high environmental integrity and alignment with Article 6.4 of the Paris Agreement. Key highlights include:
- Conservative Baselines Aligned with Article 6.4
Baselines follow the provisions of paragraphs 36(i) and 36(ii) of the Rules, Modalities, and Procedures of Article 6.4, using best available technology (BAT) for brownfield projects and ambitious performance benchmarks for greenfield projects. - Annual Downward Adjustment
Emissions reductions are automatically adjusted downward by 1% each year, ensuring increasing ambition over time. - Life-Cycle Leakage Assessment
Leakage emissions are evaluated using a life-cycle approach, including embodied emissions in electrolyzers, water use, compression, storage, transport, and (for blue hydrogen) CO₂ capture and storage systems. - Safeguards Against Fossil Lock-in
Applicability conditions ensure that the methodology does not incentivize long-term lock-in of fossil fuel–dependent systems. - Water Security Protection
Given the water intensity of hydrogen electrolysis, the methodology incorporates safeguards through the Overall Factory-to-Basin Impact (OFBI) index, ensuring no adverse impact on local water resources.
Why This Matters
As demand for low-carbon fuels, fertilizers, and hydrogen carriers rises, ammonia is increasingly seen as a cornerstone of the global clean energy transition. GCC’s methodology:
- Encourages responsible scaling of low-carbon ammonia
- Supports host country climate goals and Article 6 cooperation
- Ensures robust measurement, reporting, and verification
- Creates pathways for high-integrity carbon credit generation
This methodology strengthens international efforts to align industrial decarbonization with both climate integrity and sustainable development.
How to Participate in the Public Consultation
The Global Carbon Council invites stakeholders—including governments, industry experts, project developers, and researchers—to review the draft methodology and provide feedback to enhance its clarity, applicability, and environmental integrity.
📑 Download the Comment Submission Format and submit your comments to operations@globalcarboncouncil.com
https://www.globalcarboncouncil.com/wp-content/uploads/2024/01/methodologies-commenting-sheet.docx
We encourage all experts, practitioners, and stakeholders in the field of industrial decarbonization and climate action to engage in this consultation and share their feedback.
📑 Download the Commenting Sheet and submit your comments to operations@globalcarboncouncil.com
Commenting Sheet: https://www.globalcarboncouncil.com/wp-content/uploads/2024/01/methodologies-commenting-sheet.docx
