# KNOWLEDGE BASE: INDUSTRIAL CARBON MONITORING

## 🌱 Double-Entry Carbon Accounting
To ensure compliance with strict environmental auditing requirements, Orbit AI Carbon implements standard double-entry carbon ledger tracking across three primary emission scopes:

### 1. Scope 1 (Direct Emissions)
- Direct emissions generated by company-owned assets.
- **Data Ingest**: Gas meters ($m^3$), diesel generator logs, fuel combustion variables.
- **Formulas**: Fuel consumed multiplied by carbon emission factors ($EF_{fuel}$).

### 2. Scope 2 (Indirect Emissions)
- Indirect emissions from purchased energy.
- **Data Ingest**: Main utility electrical meters (kWh, kVA).
- **Formulas**: Ingested grid electricity multiplied by active localized utility grid emission factors ($EF_{grid}$).

### 3. Scope 3 (Value Chain Emissions)
- Indirect upstream and downstream logistics, supply chain raw materials, and waste disposal.
- **Data Ingest**: ERP supply logs, supplier invoices, transportation logs.

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## 🇪🇺 CSRD & CBAM Audits Compliance
For exporters targeting European and global markets, verification is critical:
- **CSRD (Corporate Sustainability Reporting Directive)**: Mandates transparent, auditable ESG report structures.
- **CBAM (Carbon Border Adjustment Mechanism)**: Imposes carbon import tariffs based on product carbon footprints. Orbit AI Carbon generates certified, transactional reports to avoid custom tax surcharges.
- **Solar Offsets**: Automatically credits green solar generation offsets (e.g. from SFBT PV arrays) directly against carbon accounts, showing verified net emissions reduction metrics.