Transparency
Methodology Statement
This document explains how TERRALEKHA calculates embedded greenhouse gas emissions and produces CBAM PassPorts. It is published for transparency — so that customers, auditors, accredited verifiers, and EU buyers understand which standards govern our calculations and can independently verify our approach.
This document covers the regulatory framework we follow, how we define boundaries, which emission factors we use and how we keep them current, and how we handle incomplete data. It does not disclose our proprietary calculation engine code — only the standards and principles it implements.
1. Regulatory and standards framework
| Standard | How TERRALEKHA applies it |
|---|---|
| EU Regulation 2023/956 — CBAM | TERRALEKHA PassPorts contain all fields required by CBAM Annex IV. Calculation methodology follows CBAM Implementing Regulation (EU) 2023/1773, which specifies acceptable methods for embedded emissions by sector. |
| GHG Protocol Corporate Standard (WRI/WBCSD) | Scope 1, 2, and relevant Scope 3 definitions. Organisational boundary established using operational control approach as default, with financial control and equity share available for complex structures. |
| ISO 14064-1:2018 | Calculation methodology follows ISO 14064-1 principles of relevance, completeness, consistency, accuracy, and transparency. |
| ISO 14064-3:2019 | PassPorts are structured to support third-party verification. Data trail, calculation steps, and confirmation records provided to the accredited verifier in machine-readable form. |
| India MoEFCC & CEA emission factor databases | India-specific emission factors from the Ministry of Environment, Forest and Climate Change and the Central Electricity Authority. Updated within 60 days of each new publication. |
2. Organisational boundary
Before calculating emissions, TERRALEKHA establishes the organisational boundary — which facilities are included. Three approaches are supported as defined by the GHG Protocol:
- Operational control (default) — all facilities the organisation manages day-to-day. Correct for most Indian MSMEs.
- Financial control — all facilities over which the organisation has financial control. Used when owned and operated facilities differ.
- Equity share — emissions proportional to equity ownership. Used for joint ventures.
The boundary approach is declared once at onboarding, stored in the customer profile, and applied consistently to all subsequent PassPorts.
3. Scope definitions
Scope 1 — Direct emissions
- Stationary combustion — fuel in furnaces, kilns, boilers, generators
- Mobile combustion — fuel in company-owned vehicles within the installation boundary
- Process emissions — CO₂ from limestone decomposition (cement), iron ore reduction (steel)
- Fugitive emissions — refrigerant leaks, methane from wastewater (declared where applicable)
Scope 2 — Indirect energy emissions
Purchased electricity, steam, heat, or cooling. Location-based method using India-specific CEA regional grid emission factors.
Scope 3 — Precursor embedded emissions (CBAM-relevant)
Embedded emissions from direct precursor materials used in production — for example, purchased iron ore, scrap, or pig iron used in steel production. Full Scope 3 inventory for BRSR reporting is available under the ClearPath subscription.
4. Emission factors
| Source | Factor database | Current version |
|---|---|---|
| Grid electricity — all India regions | CEA CO₂ Baseline Database for the Indian Power Sector (annual) | CEA 2024 |
| Diesel combustion | IPCC 2006 Guidelines, Volume 2, Table 2.2 | 74.1 kgCO₂/GJ |
| LPG combustion | IPCC 2006, Table 2.2 | 63.1 kgCO₂/GJ |
| Natural gas | IPCC 2006 · MoEFCC where available | 56.1 kgCO₂/GJ |
| Coal and coke | IPCC 2006 · CBAM 2023/1773 sector values | CBAM 2023/1773 |
| Steel process emissions | CBAM Implementing Regulation (EU) 2023/1773, Annex IV, Section 3 | CBAM 2023/1773 |
| Precursor defaults | CBAM published default values for precursor materials | CBAM 2023/1773 |
5. Handling incomplete data
When required data is not available, TERRALEKHA applies a certified default factor. This is consistent with CBAM Implementing Regulation (EU) 2023/1773, which permits published default values when actual data cannot be obtained.
Explicit acceptance required. Every substitution requires the customer's written acceptance — a checkbox per item, recorded with name, role, timestamp, and IP address. The quantitative impact of each substitution on the final intensity figure is shown before acceptance. All substitutions and their acceptances are listed in the PassPort document and visible to the accredited verifier.
6. Cryptographic integrity — LedgerLib
Once calculation is confirmed, TERRALEKHA applies a SHA-256 Merkle Root cryptographic seal using LedgerLib — our open-source sealing library (MIT licence). The hash is embedded in the PassPort QR code. Any change after sealing produces a different hash and is immediately detectable. EU customs can verify any PassPort at terralekha.in/verify/{hash}.
7. Verification
Every TERRALEKHA PassPort is reviewed and co-signed by an independent third-party verifier accredited under ISO 14065:2020 before delivery. The verifier independently assesses whether the emissions data, calculation methodology, and boundary definitions are consistent with applicable standards.
TERRALEKHA is not an accredited verifier. TERRALEKHA is the calculation and sealing platform. Verification is performed by an independent accredited body. This separation is fundamental to the integrity of the PassPort.
8. Contact
Methodology queries: service@terralekha.in
Verification and audit queries: verify@terralekha.in