Carbon gap analysis

A carbon gap analysis is an assessment that compares a company's current or projected greenhouse gas (GHG) emissions with its emissions reduction targets. It gives a clear picture of the gap between where the company stands and where it needs to be to meet its sustainability commitments.

What are carbon gaps?

Carbon gaps are the difference between current GHG emissions and the levels needed to meet climate goals such as those of the Paris Agreement, which aims to keep global temperature rise well below 2°C and ideally to 1.5°C above pre-industrial levels.

Why carbon gap analysis matters

• Setting realistic goals: it helps define data-driven reduction targets that are both ambitious and achievable, ideally as science-based targets.
• Identifying priorities: it highlights the largest emission sources and where action has the greatest effect.
• Prioritising investment: it supports the most effective decarbonisation measures.
• Tracking progress: it enables monitoring over time and adjustment of the strategy.

Types of carbon gap analysis

Absolute emissions gap

Compares total GHG emissions over a period with absolute reduction targets. Example: cutting absolute emissions by 20% by 2030.

Emissions intensity gap

Compares emissions intensity (emissions per unit of output or activity) with intensity targets. Example: reducing emissions per unit of product by 10% by 2030.

Emissions pathway gap

Assesses whether a company's projected trajectory aligns with the global or sectoral pathways required to meet climate goals.

How a carbon gap analysis is carried out

1. Define the scope: set the boundaries and the GHGs and activities to include.
2. Collect data: gather accurate, comprehensive emissions data from relevant sources.
3. Set targets: define specific, measurable, achievable, relevant and time-bound (SMART) goals.
4. Quantify the gap: calculate the difference between current or projected emissions and the targets.
5. Identify measures: evaluate options to reduce emissions and close the gap.
6. Build an action plan: set out a roadmap to implement the chosen measures.
7. Monitor and review: track progress and adjust as needed.

Benefits for companies

• Regulatory readiness: preparing for stricter requirements such as the CSRD.
• Reputation: strengthening brand credibility on climate.
• Access to finance: opening opportunities for sustainable investment.
• Efficiency and innovation: uncovering cost and resource savings.
• Competitive advantage: differentiating with customers and investors.

At Manglai we help companies measure their carbon footprint, run their carbon gap analysis and prepare their sustainability reporting. Discover how Manglai can help you.