The U.S. Environmental Protection Agency (EPA) has established a new reporting system that will require the largest emitters of greenhouse gasses (GHGs) to track their emissions beginning January 1, 2010.  These organizations will then be required to report their findings to the government annually, with public disclosure due in the first quarter of 2011.

Reporting will be mandatory for approximately 10,000 of the nation’s biggest emitters, which account for about 85% of total US GHG emissions.  Power plants, vehicle and engine manufacturers, and industrial facilities emitting 25,000 metric tons or more of GHGs will be required to comply with the EPA regulation.  The cutoff is equivalent to approximately the annual GHG emissions from 4,600 passenger vehicles.

The graph to the right represents the breakdown of emissions by industry, coinciding with the organization types required to report their emissions.

The EPA has said the new reporting system will provide a better understanding of where GHGs are coming from and will guide development of the best possible policies and programs to reduce emissions.  It will also be the necessary foundation for federal policy to reduce pollution resulting in global warming.

This can only be considered a good development.  Many of the 10,000 largest emitters are already required to report other types of emissions to the EPA; the addition of GHG tracking will not “rock the boat” too significantly.  While other companies may grumble about the extra cost to implement a new process to collect and report data on their emissions, the future will hold some form of carbon tracking – whether in the form of cap and trade or taxation – by which they will be required to abide.  The EPA’s rule will give the largest emitters an opportunity to take inventory now, compare their output to similar organizations, and determine ways to reduce their consumption – putting them in a better financial position for the day that GHG emissions are a central component of any company’s viability.