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What is SBTi and Why Does RNG Matter?

What is SBTi and Why Does RNG Matter?
The Science Based Targets initiative (SBTi) validates corporate emission reduction targets aligned with limiting global warming to 1.5°C. Over 4,000 companies globally have committed to SBTi-validated targets.

QET-RNG certificates enable you to:

• Reduce Scope 1 fossil CO₂ emissions (counts toward SBTi target achievement)
• Improve Scope 3 Category 3 fuel lifecycle emissions (counts toward SBTi Scope 3 targets)
• Document fuel substitution with ISO 14064-3 verified data (meets SBTi Recommendation R3 for biofuel certification)

Overview: Why QET-RNG Matters for CDP

CDP (Carbon Disclosure Project) is the world's largest corporate environmental disclosure platform. Over 23,000 companies report annually to CDP, serving over 700 institutional capital markets signatories with combined assets of US$142 trillion and 330+ major purchasers with over US$6.4 trillion in procurement spend.

About the 2025 Questionnaire: Since 2024, CDP has integrated its previously separate climate change, forests, and water security questionnaires into a single CDP Full Corporate Questionnaire with 13 modules. This guide covers the climate-change-relevant questions.

QET-RNG certificates provide verified data for:

• Scope 1 emissions reporting
• Biogenic CO2 disclosure
• Scope 3 Category 3 fuel lifecycle emissions
• Climate strategy and transition planning

CDP Scoring Impact:
CDP Scoring Impact: Complete, verified renewable fuel reporting enhances your CDP score in the Emissions question area (C6-C8), Scope 3 reporting (C8.2), and Verification (C10) scoring sections.

What is The Climate Registry (TCR)?

The Climate Registry is a North American nonprofit that designs and operates voluntary and compliance GHG reporting programs.

TCR members include:

• Corporations (voluntary reporting)
• U.S. states & Canadian provinces (compliance programs) Tribal nations
• Municipalities

TCR General Reporting Protocol (GRP) V3.0 sets standards for GHG accounting, including eligibility criteria for renewable fuel contractual instruments.

QET-RNG Eligibility for TCR Reporting

Fuel Attribute Documentation Certificates satisfy all 7 TCR Steam and Heating Eligibility Criteria (GRP Advanced Methods Module, Section D-15) and the QET-RNG physical delivery best-practice standard.

Production Documentation Certificates do NOT meet the QET-RNG physical delivery standard and should not be used to apply market-based emission factors for biogenic CO2 or Scope 1 CH4/N2O reporting under GRP Section D-7.

Introduction and Scope

The Quantified Emissions Token (QET) serves as a digital container for verified environmental attributes and emissions data collected from real-world commodities. This methodology document provides the procedural framework for creating, validating, and verifying QETs that represent the environmental impacts of physical commodities, with particular focus on natural gas production, processing, transmission, and distribution.

This methodology is designed to be compatible with and verifiable under ISO 14064-3 standards for greenhouse gas assertions, while incorporating the principles of ISO 14067 for product carbon footprinting. It establishes the requirements for QET production regardless of the specific measurement technology or approach used by the producer, so long as the measurement methodology meets the minimum requirements for data quality, uncertainty management, and verification.

Introduction and Scope

The QET-LCFS methodology establishes a comprehensive framework for producing verified emissions tokens that meet California's Low Carbon Fuel Standard (LCFS) requirements. This methodology extends the core QET framework while incorporating specific requirements for carbon intensity calculation, fuel pathway certification, and CARB verification processes.

This document provides the procedures necessary for tracking and verifying the carbon intensity of transportation fuels throughout their lifecycle, ensuring compliance with California Air Resources Board (CARB) regulations while maintaining compatibility with ISO 14064-3 verification standards.

Purpose and Scope

This Governance Framework defines the principles, requirements, and procedures governing environmental certificate programs operated on the EarnDLT Platform and Greentruth Marketplace (GTM). It applies to all Quantified Emissions Tokens (QETs) and Environmental Impact Assets issued through the EarnDLT registry—including energy-based, mass-based, and electrical QETs; sectoral compliance instruments such as LCFS and RFS attributes; carbon removal and sequestration certificates; and third-party environmental programs administered on the platform. The Framework ensures environmental integrity and regulatory compliance in alignment with ISO 14064-3:2019, ISO 14065:2020, and ISO/IEC 17029:2019.

Governance is executed through documented procedures and clearly assigned decision-making authority rather than standing committees, enabling operational agility while maintaining ISO-compliant oversight. The Framework applies to programs owned by Earn and GTM, as well as third-party programs administered on the platform under defined onboarding and approval requirements, and may evolve to formal governance bodies as platform complexity increases.

Prepared as an ISO 14065:2020, ISO 14064-3:2019, and ISO/IEC 17029:2019 Compliant Governance Framework for Environmental Certificate Programs

The information contained in this document is intended solely for authorized recipients and may be legally privileged. Any unauthorized review, use, disclosure, or distribution is prohibited. Nothing contained herein shall be construed as providing legal, financial, or technical advice. Earn DLT, Inc. makes no warranties, express or implied, regarding the accuracy, completeness, or fitness for a particular purpose of the information contained herein.

No part of this document may be reproduced, distributed to third parties, in whole or in part, without the express written permission of Earn DLT, Inc. The methodology described herein, including the Quantified Emissions Token® (QET) framework, is the intellectual property of Earn DLT, Inc. and is subject to patent and/or other intellectual property protections.

© 2025 Earn DLT, Inc. All rights reserved. This document contains proprietary and confidential information of Earn DLT, Inc. and is protected by copyright law. The Earn logo is a registered trademark of Earn DLT, Inc.

Introduction and Scope

The QET-Ethanol methodology provides a specialized framework for quantifying and verifying emissions associated with ethanol production. This methodology addresses the unique characteristics of ethanol manufacturing, including biological fermentation processes, diverse feedstock options, and both conventional and advanced production pathways.

This document establishes requirements for tracking emissions throughout the ethanol production lifecycle, from feedstock cultivation and processing through fermentation, distillation, and distribution, while maintaining compliance with ISO 14064-3 verification standards.

Introduction and Scope

The QET-CCS methodology establishes a comprehensive framework for quantifying, verifying, and tokenizing carbon dioxide removal through capture and sequestration technologies. Each QET-CCS token represents one kilogram of CO₂ equivalent permanently removed from the atmosphere and securely stored in geological formations.

This methodology addresses the complete CCS value chain, from carbon capture at emission sources through transportation and injection into geological storage sites, ensuring permanent sequestration and providing immutable verification through the EarnDLT registry system.

Introduction and Scope

The QET-SOL methodology provides a standardized framework for quantifying and verifying greenhouse gas emissions associated with solid fuel production and combustion. This methodology establishes procedures for measuring GHG intensity in units of kgCO₂e per million British thermal units (MMBtu), enabling transparent tracking of solid fuel environmental performance.

This document addresses the complete lifecycle of solid fuels, including extraction, processing, transportation, and end-use combustion, while providing mechanisms for environmental attribute certification that meet ISO 14064-3 verification standards.

Executive Summary

This methodology establishes a comprehensive framework for producing, quantifying, and verifying Renewable Natural Gas Quantified Emissions Token® Thermal Certificates (QET-RNG), ensuring all greenhouse gas (GHG) intensities are measured in kgCO₂e/MMBtu. Each QET-RNG represents 1 MMBtu of thermal energy from renewable natural gas with verified carbon intensity, designed to provide precise, audit-friendly environmental attribute certificates aligned with ISO 14064-3 verification requirements and directly referencing the EarnDLT QET core natural gas production and verification methodology. The QET-RNG tokens are issued, managed, and tracked on the EarnDLT blockchain-based registry platform, providing immutable record-keeping and transparent chain-of-custody documentation.

Buyer Reporting Framework Alignment: This methodology aligns with the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard, CDP Full Corporate Questionnaire, and The Climate Registry (TCR) General Reporting Protocol, ensuring QET-RNG certificates support corporate buyers' science-based target achievement, standardized climate disclosure, and voluntary/compliance GHG reporting obligations. The verified lifecycle carbon intensity data, chain of custody documentation, and physical delivery verification enable buyers to accurately report renewable fuel procurement in Scope 1 and Scope 3 inventories.

California Market Note: Producers intending to sell RNG thermal certificates into California's Low Carbon Fuel Standard program must enhance their QET-RNG tokens using the companion QET-LCFS Extension Methodology to ensure full regulatory compliance and credit generation capability.

Environmental Attribute Digital Passport: QET-RNG certificates are digital passports that document and transfer the environmental attributes of renewable natural gas from producer to consumer. While RNG molecules physically commingle with conventional natural gas in pipeline infrastructure, the QET-RNG certificate follows the contracted fuel pathway, enabling customers to accurately report the fuel type in their Scope 1 GHG inventory. The EarnDLT/Greentruth platform validates five criteria to confirm the certificate represents RNG that physically entered the customer's gas supply system:

1. RNG injection point identified,
2. customer delivery point identified,
3. pipeline connectivity confirmed,
4. volumetric equivalence established, and
5. temporal matching confirmed.

This verification ensures customers report biogenic CO₂ from RNG combustion rather than fossil (anthropogenic) CO₂ from conventional natural gas combustion.