PCAF Integrates CEDA into Database to Improve Emissions Measurement

The Partnership for Carbon Accounting Financials (PCAF) has integrated the Comprehensive Environmental Data Archive (CEDA) into its Database, giving financial institutions access to new tools to improve emissions measurement. PCAF continues to invest in improving its Database and seeks to support the industry in improving reporting methods.

The PCAF Database supports PCAF Signatories in estimating greenhouse gas emissions linked to financial activities. The Database provides emission factors, which are representative values that help quantify emissions and serve as a practical starting point for portfolio emissions estimation.

Integrating CEDA to the PCAF Database supports financial institutions with measuring and managing their carbon footprints. CEDA particularly supports financial institutions that are operating in sectors and regions with limited disclosed emissions data (e.g. due to lack of regulation) and have exposure to smaller and private companies. CEDA provides proxy emission intensities, which allow financial institutions to estimate emissions when limited information is available. These proxies enable hotspot analyses, fill data gaps, and prioritize efforts to improve data quality.

CEDA, managed by enterprise sustainability platform Watershed, is a publicly available, multi-regional environmentally extended input-output (EEIO) database that links economic activity to environmental impact across 400 sectors in 148 countries. Its global coverage spans 95% of GDP, offering regional proxies and “rest of world” factors for underreported areas. This data continues to expand in scope and detail to support climate accountability worldwide. With over 60,000 emissions factors and annual updates, CEDA is one of the most comprehensive open source EEIO databases used in climate disclosures.

With CEDA part of the PCAF Database, financial institutions have access to comprehensive economic emissions intensities that allow sector-level estimates using financial data. While CEDA’s revenue-based emission factors are also publicly available, there are two major benefits of accessing the data through the PCAF Database: 

1. PCAF develops asset-based emission factors based on CEDA, which are calculated using asset turnover ratios and enable financial institutions to estimate emissions based on the size of their exposure, even when revenue data is missing.
2. PCAF provides multiple additional resources to assist with the implementation of the datasets, including sector mapping, inflation adjustment factors, extensive guidance, and technical support.

To integrate CEDA effectively, PCAF leaned on its Climate Data Working Group (CDWG) and Signatories to test the database and ensure a smooth implementation. PCAF conducted a thorough two-phase evaluation of the CEDA dataset to assess its suitability. In Phase 1 (Jan–Apr 2025), the PCAF Secretariat and CDWG tested CEDA and found it well-suited for GHG accounting, offering advantages such as greater sector and geographic granularity, improved accuracy and consistency, reduced data lag annual updates, and dedicated technical support. Phase 2 (May–Sep 2025) extended testing to all PCAF Signatories, with ~30 participants providing feedback via forms, communications, and sessions. Signatories supported CEDA’s granularity, data recency, clearer guidance, and helpful tools for usability.

Looking ahead, PCAF signatories are encouraged to use CEDA when economic emission factors are needed. PCAF and CEDA intend to annually update the dataset to ensure a more accurate, up-to-date emissions accounting. Guidance and resources are provided to ease the transition. As the uptake of the dataset increases, PCAF will facilitate knowledge sharing and discussions to ensure signatories can learn from each other and collectively grow on their GHG accounting journey.

For more information, please reach out to info@carbonaccountingfinancials.com.