Impact Convergence Forum
A Step Towards Convergence on Avoided Emissions Methodologies
In 2024/2025, ICF partnered with Project Frame and the World Business Council for Sustainable Development (WBCSD) to form an Avoided Emissions Methodology Working Group to build more integrated guidance and resources so that investors and companies—across asset class, maturity, or industries—can identify and align on best practices for assessing and reporting expected and realized avoided emissions. We are pleased to share the outcome of that initial effort here: "Avoided Emissions: A Report for Investors and Businesses – Co-authored by Prime Coalition (Project Frame), ICF, and WBCSD"
Alongside this working group, ICF members developed a set of sector-specific case studies to illustrate current applications and highlight key methodological decision points. Drawn from private equity growth investments across agriculture, renewable energy, and energy storage, these examples reveal real-world challenges, practical decisions, and trade-offs in applying avoided emissions methodologies.
ICF Case Studies on Avoided Emissions
June 2025 - These case studies were developed by members of the ICF during a 2024–25 Project Frame Content Working Group to showcase practical considerations in forward-looking and realised avoided emissions assessments. They are illustrative only and do not constitute commercial, legal, financial or investment advice. The case studies are intended to surface methodological considerations, not to prescribe a standard or endorse any specific tool, company or framework. Please note that the case studies development and methodological choices were informed by and are based on the Project Frame and WBCSD frameworks, but they do not rigorously follow either of the methodologies.
Case #1: Nitrogen-Fixing Biological Inoculant for
High-Yield Cereal Crop Production
Overview: Illustrative Potential, Planned and Avoided Emissions Assessments for a biological
inoculant that can partially replace synthetic Nitrogen-fertilizer use, resulting in avoided emissions across both manufacturing (CO₂) and field-use emissions (N₂O).
Problem Addressed: Synthetic nitrogen fertilizers are a major source of agricultural emissions (~10.6% of sector GHGs, 2.1% of global emissions in 2018). Production is energy-intensive, while field application causes significant N₂O emissions (GWP 273x CO₂).
Solution Assessed: Non-transgenic, gene-edited microbes that fix atmospheric nitrogen, enabling 15-30% reduction in synthetic fertilizer use per acre without yield loss.
Case #2: Green Hydrogen from Alkaline Electrolysers for Hard-to-Abate Industrial Sectors
Overview: Illustrative Potential (“top-down”) and Planned (“bottom-up”) Avoided Emissions Assessments for industrial-scale pressurized alkaline (AEL) electrolysers producing green
hydrogen in Europe. Highlights challenges of estimating avoided emissions across diverse industrial end-uses and varying market scenarios.
Problem Addressed: Decarbonizing hard-to-abate sectors—steel, ammonia, methanol, refining—requires low-carbon hydrogen. Grey hydrogen, produced from fossil fuels via SMR, emits ~920 Mt CO₂ annually (~2.5% of global energy emissions). Less than 1% of hydrogen today is produced via electrolysis. Barriers include high costs, limited infrastructure, end-use readiness and policy and regulatory uncertainty.
Solution Assessed: Industrial-scale AEL electrolyzers powered by renewables to produce green hydrogen, replacing grey hydrogen and fossil fuels in high-emission industrial applications.
Case #3: Grid-balancing support and renewable energy production in the UK: battery energy storage systems, pumped storage hydropower and green hydrogen
Overview: Illustrative forward-looking Planned Avoided Emissions Impact Assessment for a UK-based company developing three grid-balancing solutions: Battery Energy Storage Systems (BESS), Pumped Storage Hydropower (PSH), and Green Hydrogen production.
Problem Addressed: Wind and solar generation often misalign with demand, leading to curtailment, grid stress, and emissions. In Great Britain, wind curtailment alone caused £507
million in costs and 1.02 Mt CO₂e emissions annually (2020–2021). Flexible storage and hydrogen solutions are critical for integrating renewables and reducing emissions across sectors.
Solution Assessed: The Planned Impact assessment estimates the avoided emissions potential of BESS, PSH, and Green Hydrogen based on projected commercial capacity growth, highlighting their role in decarbonizing the UK’s power and industrial systems.