The emissions intensity of a product’s production and post-production depends on how it’s made and what energy sources are used.
Functional units
The functional unit is the standard measure used to calculate and report emissions. The functional unit differs for each product.
Batches
A batch is a specific quantity of a product produced under consistent conditions, over a defined period. A batch:
- is measured at the production gate (the point where the product is ready for delivery)
- has a single, consistent emissions intensity.
After production, a batch may be split and delivered to different consumers. This is because post-production emissions will differ depending on the delivery method, distance and infrastructure used.
Production emissions sources
Production emissions are the greenhouse gas emissions generated during the process of making of a product. These make up the production emissions intensity and contribute to the delivered emissions intensity reported on Product Guarantee of Origin (PGO) certificates.
The Future Made in Australia (Guarantee of Origin) Methodology Determination 2025 accounts for:
- scope 1: direct emissions from the production facility (for example, fuel combustion)
- scope 2: indirect emissions from electricity used (for example, emissions from grid electricity)
- scope 3: emissions from upstream activities (for example, the production and transport of feedstocks).
Post-production emissions sources
Post-production emissions are the greenhouse gas emissions that occur from the transport and storage of a product after it’s made. They make up the post-production emissions intensity and contribute to the delivered emissions intensity reported on PGO certificates.
These are usually scope 3 emissions. For example, emissions from:
- diesel trucks or ships transporting the product from the production site to storage or export terminals
- loading or unloading the product at terminals or during pipeline injection.
Co-products and losses
What are co-products
Co-products are secondary outputs generated alongside a product during production. They can affect emissions intensity and the environmental profile of the product.
Emissions from shared inputs are allocated to either the product and co-products based on energy content, mass or economic value.
PGO certificates include details on co-products and emissions intensity allocations.
What are losses
Losses refer to the reduction in quantity of a product as it moves through the supply chain. These losses are important because they affect the accuracy of emissions reporting and the validity of PGO certificates.
Losses are included in the calculation of delivered quantity and emissions intensity, as shown on a PGO certificate.
Monitoring and measuring principles
The methodology determination accounts for different ways that formulas and methods can be monitored and measured. These can include:
- direct measurement
- invoice method
- methods permitted by the methodology determination.
If there is more than one way to monitor or measure a parameter, the method that best meets the following principles must be used:
- Transparency: uses information that is documented and can be checked.
- Comparability: uses information that is consistent with common industry practice and recognised standards.
- Integrity: uses information that is reliable and can be traced back to its source.
- Accuracy: uses the best available information to ensure accuracy.