Introducing CountEmissionsEU: The Transport Emissions Regulation You Can’t Ignore

Change is coming to the transport sector in the form of CountEmissionsEU, a new EU initiative designed to standardise how companies measure and report their transport-related greenhouse gas (GHG) emissions.With the EU’s increasing sustainability drive, this regulation represents a critical shift for logistics-intensive businesses in production and distribution.

What is CountEmissionsEU? 

At its core, CountEmissionsEU sets out to create a consistent, transparent framework for calculating and reporting GHG emissions tied to transport. This regulation aligns with the ISO14083:2023 standard, which has already earned recognition as the latest global standard for assessing emissions from transport activities. For businesses in the EU and Norway, this means that all transport-related emissions, whether domestic or international, will need to be meticulously documented and reported.

Why Does CountEmissionsEU Matter?

For years, GHG emissions reporting varied wildly, making it hard for companies to compare data and improve their environmental performance. CountEmissionsEU, built on the foundation of the ISO 14083:2023 standard, changes that by requiring all companies transporting goods to or from the EU to follow a consistent emissions calculation methodology. Whether you’re moving goods by road, rail, sea, or air, you’ll now need to document and report emissions using primary data (like fuel consumption, distance travelled, and load factors), improving both accuracy and accountability.

How Will CountEmissionsEU Impact My Business?

CountEmissionsEU introduces significant changes in data quality, transparency, and accountability:

• Primary Data Requirement: No more rough estimates. You must use primary data sourced directly from operational systems (e.g., fleet databases, telematics platforms). Accurate and specific data is now a must.
• Subcontractor Emissions Reporting: For businesses using subcontractors, emissions data from those services must also be captured and reported. You'll need to ensure your partners align with the new standards.
• No More ‘Good Enough’ Reporting: High-level reporting won't cut it. CountEmissionsEU requires detailed tracking for each stage of the transport chain, which means having robust data collection, management, and auditing systems in place.
• Compliance and Strategic Advantage: Staying compliant not only avoids penalties but also boosts environmental credibility in the eyes of customers, investors, and partners. It’s a chance to set your business apart as a sustainability leader.

A Step Toward Greater Transparency

What sets CountEmissionsEU apart is its focus on transparency and data quality. No longer can businesses rely on rough estimates or default data. Instead, companies must pull information directly from operational systems like fleet management databases. For logistics operators, this means ensuring every aspect of transport is accurately measured and integrated into your reports. For businesses relying on carriers or sub-contractors, this means pushing your partners to provide the right data.

For logistics-intensive businesses, this is a critical opportunity to align your operations with the EU’s sustainability targets. By understanding your emissions in greater detail, you can make informed decisions, like shifting to lower-emission transport methods, improving consolidation or optimising delivery routes.

Who Will CountEmissionsEU Impact?

The CountEmissionsEU regulation will affect companies with goods flow moving in and out of the EU. The CountEmissionsEU regulation will have a significant impact on medium-sized and large enterprises across the EU and Norway, specifically those involved in transport, logistics, manufacturing, wholesale, and retail. Here's how the regulation applies to various company types:

Medium and Large Enterprises

The new standards primarily affect businesses that meet the following size and financial thresholds:

• More than 50 employees and an annual turnover exceeding EUR 2 million.
• Large corporations with 250 or more employees and an annual turnover above EUR 50 million will be required to comply with the strictest rules. These companies are mandated to use primary data to calculate and report their greenhouse gas (GHG) emissions, ensuring the highest accuracy in tracking metrics like fuel consumption, travel distances, and load factors.

The emphasis on primary data collection means businesses will need advanced data management systems to comply with the ISO 14083:2023 standard. This standard will apply to all forms of transport—road, rail, sea, and air—making comprehensive and transparent emissions reporting mandatory.

Companies with Goods Flow In and Out of the EU

Any business engaged in moving goods to or from the EU will be required to align with CountEmissionsEU regulations, affecting the following sectors:

• Manufacturers: Companies producing goods and shipping across borders will need to report emissions across the entire supply chain, from production facilities to consumers.
• Wholesalers: As distributors moving large volumes of products, wholesalers will be required to track and report emissions from all logistics operations, ensuring that data is collected accurately and complies with regulations.
• Retailers: Whether handling local deliveries or larger shipments across regions, retailers will also need to adjust their logistics operations to align with the new standards.

The regulation’s scope covers every stage of transport, demanding full compliance from the initial point of shipment to the final delivery. Accurate emissions reporting will be crucial for these sectors to meet regulatory requirements.

Supply Chain Managers & Subcontracted Transport Services

Companies using third-party carriers or subcontracted services must ensure that their partners' emissions data meets CountEmissionsEU requirements. This makes data transparency across the entire transport chain vital, as accurate reporting will need to be ensured for all segments, whether managed directly or outsourced. Developing clear collaboration and data-sharing agreements with subcontractors will be essential for compliance.

CountEmissionsEU: An Opportunity for Sustainability Leadership

While the new regulation may seem like just another layer of compliance, CountEmissionsEU offers an opportunity to stand out as a sustainability leader. Businesses that adopt these standards before competitors will not only avoid penalties but also improve their environmental credibility. CountEmissionsEU is a chance to set your business apart, show commitment to sustainability, and stay competitive in a changing market landscape.

Want to learn more? 

Want to learn more about CountEmissionsEU? Stay tuned for the complete CountEmissionsEU guide launching 8 October 2024. Join our content mailing list to make sure you don't miss it 👉

References

1. European Environment Agency (EEA). (2021). Greenhouse gas emissions from transport in Europe. Read more.
2. European Commission – Climate Action. (2023). Reducing CO2 emissions from heavy-duty vehicles. Read more.
3. ISO 14083:2023 Standard. Greenhouse gases — Quantification and reporting of greenhouse gas emissions arising from transport chain operations.
4. European Parliament. (2023). EU Legislation in Progress: CountEmissionsEU – European Parliament Briefing.
5. European Parliament Press Release. (2024). New GHG Reporting Standards Announced. Published March 1, 2024.
6. Norwegian Ministry of Climate and Environment. (2022). Norway’s National Climate Target. Read more.
7. Smart Freight Centre. (2023). End-to-End GHG Reporting of Logistics Operations Guidance.
8. Jaramillo et al., IPCC, Climate Change 2022: Mitigation of Climate Change.