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4 METHODOLOGICAL GUIDANCE Allocation or credit or as waste. As with the issue of allocation/substitution, no consensus has been reached on how this question is best answered. In this report, we have discussed the question in terms of the waste properties of the CO2. The pro- posal introduced in the ILCD Handbook (JRC 2010), which focuses on mar- ket value, is regarded as the most substantive, as, ultimately, it is economic value that is used to distinguish between the two categories. Despite all of the understandable reservations concerning the use of econo- mic quantities in technical and scientific calculations, we recommend the use of a positive market price as the most suitable indicator for delineating the boundary between the two fundamental categories ‘co-product’ and ‘waste’. The debate on allocation vs. system expansion has been ongoing for decades and we make no claim to have resolved it in this report. The sheer quantity of material that has been written on this matter is legion. The discussion presented here is a very simplified one and recognises that in many practical applications, system expansion is equated with the emissions credit method. A ‘real’ system expansion would mean that the carbon inventory would no longer refer to the final product of interest, but rather to a system with ex- panded functionality. The substitution approach is based on the assumption that the target product is the driver of the whole process. That means that all burdens remain associated with the target product. The impact from sub- stitution is assigned wholly to the target product by subtracting the carbon footprint associated with the substituted production processes. Credit methodolgy Electricity CO2 Fig. 121: Simplified schematic comparing allocation (left) and substitution (right) Allocation Electricity CO2 H2 Processing By-products Product H2 Processing By-products Products substituted System for the production of substituted products Product Carbon footprint (CF) for product= x Allocation factor (AF) x mass share product Carbon footprint (CF) for product= 308PDF Image | Chemical Processes and Use of CO2
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