Charting a Sustainable Future: What is NZIP? The Net Zero Industrial Park Framework Explained

Jun 25 2025

The escalating global challenge of climate change, driven primarily by anthropogenic greenhouse gas (GHG) emissions, demands urgent and concerted action across all sectors. Industrial processes, when factoring in indirect emissions, contribute significantly, accounting for more than a quarter of total global GHG emissions. Recognizing this critical impact, the Net Zero Industrial Park (NZIP) Framework emerges as a vital, pioneering guide. Published by World Scientific Publishing Co. Pte. Ltd. in 2025, with copyright held by the Singapore University of Technology and Design (SUTD), this framework provides comprehensive guidance on planning, emissions accounting, and mitigation strategies for low carbon and net zero industrial parks.

The NZIP Framework offers a crucial leverage point by conceptualizing a community-based approach to thoroughly track and mitigate GHG emissions across all three scopes within an industrial park’s geographic confines. This innovative approach necessitates a rethinking of the entire ecosystem, encompassing services, legal relationships, and financial frameworks that bind industrial park operators and tenants. As an international, multi-stakeholder endeavor, it benefits from remarkable government-to-government collaboration, uniting academics, government agencies, and leading industry players to deliver clear, comprehensive, and up-to-date guidance on this rapidly evolving subject.

The framework is a product of extensive collaboration, prepared for the Ministry of Trade and Industry, South Asia, Middle East and Africa (MTI-SAMEA) (India Directorate) by the Net Zero Futures Lab (NZFL) at the Singapore University of Technology and Design (SUTD). Lead authors include Dr. F. Peter Ortner and Professor Tai Lee Siang, with contributions from Michael Koh and Ryan Chua. It acknowledges valuable inputs, feedback, and discussions from various public and private sector contributors, notably lead sponsors MTI-SAMEA (India Directorate) and the Centre for Liveable Cities (CLC). Key agencies, industry partners, and researchers from organizations like Aboitiz InfraCapital, Building Construction Authority (BCA) Singapore, Enterprise Singapore, India Green Building Council (IGBC), Jurong Town Corporation (JTC), Mahindra World City, Ministry of Trade and Industry (MTI), Sembcorp Development Ltd., and State Industries Promotion Corporation of Tamil Nadu (SIPCOT) also provided insights.

Why a Net Zero Industrial Park Framework is Needed

Despite the significant impact of industrial processes on global GHG emissions, specific guidance frameworks for low-carbon industrial parks have been notably scarce. Traditional entity-based and community-based GHG emissions reporting guidance often falls short when applied to the complex, multi-tenant, and large-scale nature of an industrial park. Furthermore, existing green building and green site certifications were not specifically designed for Net Zero Industrial Parks.

The NZIP Framework addresses this gap by defining the key features of a Net Zero Industrial Park (NZIP) well before its construction or operation begins. This “pre-development” focus allows stakeholders to prepare policy, build awareness, and establish appropriate methods for procurement, site selection, and spatial planning. The ultimate goal is to produce an “optimal” NZIP that can balance deep reduction in GHG emissions with economic viability. The framework provides high-level guidance on NZIP development, aligning it with international and national targets, leading Green Building and Site Certification schemes, and compatible with community and entity-based GHG emissions reporting and target setting.

The NZIP Framework offers a compelling value proposition: industrial parks adhering to its guidelines will be able to attract and retain high-quality, green industrial activities. This is achieved by providing the necessary infrastructure, emissions tracking capabilities, and related services that enable Multinational Companies (MNCs) and their local suppliers to meet their net zero goals. With growing demand from consumers for low-carbon products and increasing pressure on companies and countries to demonstrate emissions reductions, parks implementing the NZIP Framework are positioned to meet these demands. Global growth in corporate sustainability reporting and net-zero target setting has led to MNCs requiring their suppliers to also implement net zero goals, exemplified by Lenovo’s target for 95% of its suppliers to implement Science-Based Targets (SBTs). Adopting the NZIP Framework’s recommendations also improves opportunities for green financing for developers, operators, and tenants.

Core Areas of Guidance and Principles

The overarching ambition of the NZIP Framework is to support the development of whole-lifecycle Net Zero carbon industrial parks. This concept entails eliminating or offsetting all contributions to global warming caused by an industrial park, with detailed information on boundaries and scopes provided within the framework. The guidance draws from international best practices and discussions with sustainable development experts in Singapore and India.

The NZIP Framework provides integrated guidance on five key steps to achieve Net Zero GHG emissions:

  1. Preliminary planning and design: This involves guidance on the design process, site selection, and the legal and financial frameworks essential for developing a Net Zero industrial park. Effective planning from day one aims to reduce emissions, ensure capacity for future net zero targets by 2050, and establish management mechanisms for operational performance.
  2. Tracking GHG emissions: This involves creating inventories across all three scopes, adhering to prevailing international norms for community-based reporting.
  3. Reducing GHG emissions: This is achieved through improved efficiency, electrification, and the implementation of onsite renewable and zero-emission energy.
  4. Innovation: This focuses on deploying next-generation technologies that enable deeper decarbonization and enhance the resilience of industrial systems.
  5. Offsetting emissions: This is considered only after deep decarbonization efforts have been made, balancing out persistent emissions with the capture and permanent sequestration of atmospheric CO2.

The Greenhouse Gas Inventory

A fundamental component of the NZIP Framework is its guidance on creating a GHG inventory for an industrial park, building closely on the GHG Protocol and other internationally recognized standards. A robust GHG inventory is essential for tracking emissions, identifying changes over reporting periods, and establishing a baseline for measuring progress toward reduction goals.

A GHG inventory requires four key steps:

  1. Establishing organizational and operational boundaries.
  2. Identifying GHG emission sources.
  3. Collecting relevant activity data.
  4. Calculating GHG emissions based on activity data.

The process of data collection and documentation is formalized in an Inventory Management Plan, which must be consistently followed. International best practices recommend independent third-party verification of inventory data, followed by public reporting. In line with the GHG Protocol, the NZIP Framework emphasizes the principles of Relevance, Completeness, Consistency, Transparency, and Accuracy for GHG inventories.

Principles of the NZIP Framework

The NZIP Framework is a consensus-based, multi-stakeholder approach, leveraging expertise from academic institutions, industry experts, and government agencies to ensure broad relevance across geographies and sectors.

1. The Triple Bottom Line: The framework acknowledges that achieving Net Zero goals must not exclude other environmental, social, or economic concerns, adopting the triple bottom line as its starting point. * Economic relevance: It presents a value proposition for NZIPs, supporting their economic viability. * Environmental goals: It prioritizes water-use and waste reduction as essential environmental goals, beyond their GHG emission impacts. * Social implications: It addresses the social implications of all recommendations, noting limitations or exceptions within each framework level.

2. Prevent Greenwashing: The framework provides a realistic, phased approach to achieving Net Zero emissions while incorporating checks against false claims of carbon neutrality or other forms of greenwashing. It offers clear guidance on how to share evidence of progress accurately and positively.

3. Emphasize Emissions Reduction Before Emissions Removal: The framework stresses that reaching whole-lifecycle Net Zero targets for industrial sites requires both carbon-cutting and carbon-removal strategies. Three core principles guide the use of carbon removal: * Cut first, remove as a last resort: Preventing emissions is always more cost-effective and environmentally beneficial. Carbon removal should only be considered after all possible emission reductions have been implemented. * Truly remove CO2 from the atmosphere: Carbon offsets must be proven to genuinely remove CO2 from the atmosphere over their full lifecycle. * Proven additionality without redundancy: Carbon offsets must demonstrate “additionality” – meaning the CO2 removal would not have occurred without the purchase of the credit – and that the removal is not double-counted by another entity.

Framework Application and Target Audience

The NZIP Framework is specifically designed for industrial parks in developing countries, with a particular focus on Tamil Nadu, India. It is applicable to light industries and manufacturing but does not fully address the decarbonization challenges of heavy industries (metals, minerals, petrochemicals), noting that expanded guidance for such industries may be included in future versions.

The target audience includes both private and public actors involved in developing industrial parks in developing countries. This encompasses industrial park developers and operators, government agencies and regulators, and companies operating as tenants within industrial parks, as well as infrastructure providers. While industrial parks at all development stages can implement its strategies, site planning suggestions may be less relevant for fully developed parks.

The framework is relevant for government-managed, private, and public/private industrial parks, assuming a centralized management model. It recommends that park management, drawing from the example of UNIDO Eco-Industrial Parks (EIPs), should:

  • Manage park property.
  • Provide common infrastructures and services to tenant companies.
  • Develop and monitor Environmental, Social, and Governance (ESG) Key Performance Indicators (KPIs) for the park.

The NZIP Framework refers generically to the “reporting agent” as the entity responsible for aggregating and reporting GHG emissions data for the industrial park, which could be a government agency, a private operator, or another actor.

The NZIP Checklist

A primary use case for the NZIP Framework is to support government agencies and private developers in planning and procuring new or redeveloped industrial parks with Net Zero goals. It assists these actors in developing clear quantitative performance indicators (KPIs) that can be used in a Request for Proposal (RFP). The framework’s detailed checklist covers the three scopes of carbon emissions, alongside key features of the site’s Preliminary Planning.

The checklist categorizes actions into tracking GHG emissions, reducing GHG emissions, or innovating for deeper decarbonization. Carbon offsets are included within the ‘reduce’ or ‘innovate’ groups based on their technology readiness. For each action, multiple measures are listed:

  • Essential measures are required or represent significant steps towards Net Zero goals, falling short of 2030 targets.
  • Advanced measures represent substantial progress, broadly aligning with 2030 Net Zero goals.
  • Exemplary measures signify the attainment of Scope 1 and 2 Net Zero goals, and significant achievements toward a Net Zero value chain for Scope 3.

Recognizing that many users will be in early development stages without baseline GHG emission inventories, the checklist uses reference values from similar or modeled developments. Many reference values are intensity values (e.g., CO2e per unit of area), useful for evaluating early-stage plans. However, the framework stresses that the final standard for a Net Zero development must ultimately be the absolute reduction of carbon emissions, with constructed parks creating a baseline GHG inventory over an annual reporting period and measuring reductions in absolute terms.

Prioritizing Cost-Effective Emissions Mitigation

The NZIP checklist prioritizes actions that combine GHG emission reduction with cost-effectiveness, drawing on research like the IPCC Sixth Assessment Report.

  • Renewable Energy: Wind and solar energy are emphasized as mitigation options with the largest emissions reduction potential and lowest costs. This is a key strategy directly implemented in Scope 2 and implied in the deep decarbonization of Scope 1, which relies on electrification supported by emissions-free renewable energy.
  • Agriculture, Forestry, and Other Land Use (AFOLU): The largest mitigation potential here lies in carbon sequestration, reduced conversion of green spaces, and ecosystem restoration. The NZIP checklist integrates these priorities by emphasizing minimizing the conversion of ecologically sensitive and previously undeveloped land (actions 0.5 and 1.8).
  • Building Sector: Improvements in building system efficiency and passive solutions (requiring no energy input) offer the best combination of cost-effectiveness and emissions reduction. The framework encourages energy efficiency (action 2.3) and integrated planning (action 0.1) during preliminary design.
  • Transport Sector: Fuel-efficient vehicles and conversion to public transportation balance cost efficiency with emissions reduction. The NZIP checklist prioritizes tracking vehicular emissions (action 1.2), reducing baselines (action 1.7), promoting public transportation for commuting (action 3.15), and implementing emissions-free vehicles on-site (action 1.11).
  • Industrial Sector: The largest emissions reduction potential is in “fuel switching” with electrification of industrial processes, and future implementation of green hydrogen for heavy industry. The most cost-effective option is improvements to energy and material use efficiency. The NZIP Framework envisions fully electrified industrial sites (zero direct emissions) with aggressive improvements in energy efficiency and renewable energy, aiming for Net Zero Scope 1 and 2 emissions (actions 1.1, 1.6, 1.13, 2.1, 2.3, 2.4, 2.5, 2.6, 2.7).
  • Other Mitigation Options: Reducing fluorinated gases and methane emissions from waste disposal are also critical. The framework mandates tracking fluorinated gas emissions (action 1.5), prioritizing the elimination of high Global Warming Potential (GWP) refrigerants (action 1.10), and tracking waste treatment emissions both onsite (action 1.4) and offsite (action 3.3). It encourages eliminating onsite waste treatment emissions (action 1.9) and diverting offsite waste from landfills through recycling (action 3.12), with advanced onsite recycling facilities where practical (actions 3.13 and 3.14).

NZIP Framework Compatibility with 1.5°C Targets

Industrial parks planned today are expected to operate for decades, necessitating alignment with long-term climate goals. The NZIP Framework supports the planning of parks that will achieve Net Zero emissions by 2050 or earlier, consistent with the Paris Agreement’s 1.5°C goal. City targets aligned with the 1.5°C goal aim for a 50% global reduction in emissions by 2030 and Net Zero by 2050.

The NZIP checklist includes essential, advanced, and exemplary measures across all three GHG emission scopes. Advanced measures align with Scope 1 and Scope 2 interim goals for 2030, while exemplary measures target the 90–95% GHG emission reductions required by frameworks like the Science Based Target Network (SBTN). For future industrial parks, the framework encourages aggressive decarbonization and immediate implementation of advanced and exemplary measures. Where immediate implementation is not feasible, park planners are recommended to create a “2050 scenario” to demonstrate how the park can progressively reach Net Zero by 2050 (NZIP checklist, action 0.2).

Detailed Framework Breakdown by Scope

The NZIP Framework delves into granular guidance across preliminary planning and each GHG emission scope.

Chapter 5: Preliminary Planning of the NZIP

Preliminary planning is highlighted as having a particularly impactful influence on an NZIP’s ability to achieve low-carbon goals efficiently across all scopes. This stage offers the opportunity to fundamentally rethink park operations and eliminate emissions from the outset. The checklist actions (0.1–0.6) are designed for implementation before or during initial planning, ideally prior to site selection.

  1. Integrated Planning (Action 0.1): This process brings together project stakeholders and designers before conceptual design to address overlapping opportunities and challenges for a Net Zero industrial park. For an NZIP, the Integrated Design Process (IDP) must involve the lead developer, park operator, relevant government entities, and sustainability consultants to develop the masterplan and Net Zero scenarios. An essential measure requires participation from the operator, designer, government agencies, private developers, and sustainability consultants. Advanced IDP includes local water, waste-services, energy providers, financing institutions, logistics, and construction partners. Exemplary IDP further incorporates prospective tenants.
  2. Net Zero Scenario Planning (Action 0.2): This ensures long-term capacity for growth, economic sustainability, and adherence to international Net Zero timelines, specifically for 2030 and 2050. Scenarios should cover all Scope 1 and 2 emissions categories, detailing calculations for tenant occupancy, activity levels, emission rates, and total emissions. Mitigation measures must be supported by financial and operational plans, along with calculations of their extent and resulting reductions. The essential measure is demonstrating design capacity to reach Net Zero Scope 1 and 2 by 2050; advanced by 2040; and exemplary by 2030.
  3. Site Selection: Site selection significantly impacts an industrial park’s emissions footprint, influencing land use change, access to low-carbon transport, and access to renewable energy.
    • Capacity for Renewable Energy (Action 0.3): NZIPs must plan land acquisition to reserve space for future renewable energy needs, considering projected energy consumption growth and Net Zero Energy targets. The framework prioritizes onsite renewable energy but acknowledges that a mix of onsite and offsite (via long-term direct investment like Power Purchase Agreements) will likely be needed. Essential measure: securing capacity for >30% of 2030 projected demand; advanced: >60%; exemplary: >90%.
    • Access to Low Carbon Freight (Action 0.4): Siting with good access to low-carbon freight options (e.g., ocean or rail) significantly impacts Scope 3 emissions, as road freight has much higher GHG emissions. Essential measure: access to seaport or rail within 100km; advanced: within 50km; exemplary: within 20km. This action complements future electrification of road-based freight and employee commuting.
    • Protection of Ecological Sites (Action 0.5): Minimizing impact on sensitive ecological sites is crucial. Essential measure: environmental impact assessments and development of mitigation plans, with protection of nationally designated wildlife/ecological areas being a requirement. This aligns with minimizing Scope 1 emissions from land use change.
  4. Green Leasing (Action 0.6): This is vital for fostering collaboration between the park operator and tenants for GHG emissions tracking, reporting, and mitigation. Green leases, supported by regulatory mechanisms, ensure continuous communication and incentivized compliance, potentially including remedial measures and penalties for non-compliance. Essential measure: tenants agree to Scope 1 & 2 tracking/reporting; advanced: tenants agree to Scope 1 & 2 mitigation KPIs; exemplary: tenants include selected Scope 3 KPIs in lease-defined commitments.

Chapter 6: Scope 1: Net Zero Direct Emissions

The vision for a Scope 1 Net Zero emissions park is a combustion-free environment, implying the electrification of industrial processes and other activities within the park boundaries. Future use of zero-emission fuels like green hydrogen and ammonia may further enable decarbonization of heavy industrial processes.

Scope 1 Checklist Highlights:

  • Track Stationary Emissions (Action 1.1): Essential: required to track based on fuel purchased records. Calculations involve multiplying fuel consumption by emission factors.
  • Track Vehicular Emissions (Action 1.2): Essential: required to track using the resident-activity method, based on fuel purchases for vehicles owned/operated on-site, including off-road vehicles like forklifts.
  • Track Carbon Stock Change (Action 1.3): Essential: required to track due to land use, land use change, and forestry on site.
  • Track On-site Waste Treatment Emissions (Action 1.4): Essential: required to track emissions from on-site waste and wastewater treatment and disposal.
  • Track Fluorinated Gas Emissions (Action 1.5): Essential: required to track emissions of HFCs, PFCs, SF6, and NF3 based on purchase records and activity type.

Reducing Scope 1 Emissions:

  • Cut Stationary Fuel Combustion (Action 1.6): Essential: >30% reduction over baseline; advanced: >60% (OPCC 2030 target); exemplary: >95% (OPCC 2050 target). Achieved through electrification of industrial processes combined with renewable energy.
  • Cut Vehicular Fuel Combustion (Action 1.7): Essential: >30% reduction; advanced: >60%; exemplary: >95%. Achieved via conversion to electric vehicles or other zero-emission alternatives and increased walkability/cycle networks.
  • Cut AFOLU Emissions (Action 1.8): Essential: >30% development on brownfield land; advanced: >60%; exemplary: >95%. Focuses on minimizing emissions from land use change.
  • Cut On-site Waste Treatment (Action 1.9): Essential: >30% reduction; advanced: >60%; exemplary: >95%. Implemented via electrified processes with renewable power sources, aligning with science-based guidelines for elimination by 2050.
  • Cut Use of GHG/ODG (Fluorinated Gases) (Action 1.10): Essential: LCGWP + LCODP x 10^5 <= 13; exemplary: >95% elimination. Achieved through conversion to low GWP refrigerants and enhanced management of fugitive emissions.

Innovating for Scope 1 Emissions:

  • Emissions-free Vehicles (Action 1.11): Essential: 30% of fleet; advanced: 60%; exemplary: >95% conversion of vehicles owned/operated on-site to zero direct emissions.
  • Vehicle GPS Tracking (Action 1.12): Advanced: implemented for operator fleet; exemplary: implemented for tenant and operator fleets for accurate geographic tracking of emissions.
  • Zero Emission Backup Generation (Action 1.13): Advanced: implemented for operator; exemplary: implemented for operator and tenant through energy storage systems (ESS) or hydrogen fuel cells (FC).
  • Carbon Capture / Storage (Action 1.14): Exemplary: Long-term investment in certified CCS solutions with capacity to offset residual Scope 1 emissions (<10% of baseline) after deep reductions. Emphasizes that CCS should only be used as a last resort and credits must ensure true removal and additionality.

Chapter 7: Scope 2: Net Zero Energy

A Scope 2 NZIP signifies no GHG emissions from externally generated energy consumption. Achieving Net Zero Energy is challenging for industrial parks due to high electricity consumption, but renewable energy sources offer an increasingly affordable path.

Scope 2 Checklist Highlights:

  • Track Externally Generated Electricity (Action 2.1): Essential: required to track. Calculation involves multiplying electrical energy used by the local grid emissions factor.
  • Track Externally Generated Steam, Hot/Cold Water (Action 2.2): Essential: required to track. Calculation involves metered consumption multiplied by the average emissions rate of the supplying facilities.

Reducing Scope 2 Emissions:

  • Increased Energy Efficiency (Action 2.3): Essential: 10% improvement on Energy Use Intensity (EUI) over benchmark; advanced: 20%; exemplary: 40%. This is a central element, though reduction potential varies by industrial subsector.
  • On-site Renewable Energy (Action 2.4): Essential: combined with RECs, >60% of demand with >10% on-site; advanced: combined with RECs, >100% of demand with >20% on-site; exemplary: combined with RECs, >100% of demand with >65% on-site. Prioritizes on-site generation to minimize transmission losses and avoid additionality challenges.
  • Renewable Energy Credits (RECs) (Action 2.5): Essential: combined with on-site, >60% of demand; advanced: combined with on-site, >100% of demand; exemplary: combined with on-site, >100% of demand with <35% from RECs. The framework recommends sourcing RECs from long-term direct purchases (minimum 10 years) from specified renewable energy projects to ensure additionality.

Innovating for Scope 2 Emissions:

  • Microgrid (Action 2.6): Advanced: implementation of a microgrid capable of distributed generation and backfeeding to the municipal grid; exemplary: intelligent microgrid capabilities allowing tenant-to-tenant electricity exchange and energy storage integration.
  • Demand Response (Action 2.7): Advanced: use of demand response systems with site microgrid for automated load-shedding when renewable energy is scarce, linked with onsite energy storage.
  • District Heating Cooling System (Action 2.8): Advanced: exploration of DHCS in collaboration with neighboring city areas when scale permits or industrial activities have intense cooling needs.

Chapter 8: Scope 3: Net Zero Value Chain

Scope 3 emissions are defined as indirect emissions occurring outside the park’s geographic boundary, yet resulting from activities within the NZIP, often falling outside the direct control of the park operator and tenants. These emissions typically account for the largest share (>70%) of corporate GHG emissions. Mitigating them requires long-term collaboration across the entire value chain.

Scope 3 Checklist Highlights:

  • Track Out-of-Boundary Waste/Wastewater Emissions (Actions 3.2, 3.3): Essential: required for all wastewater and solid waste produced on site. This includes emissions from landfills, biological treatment, and incineration.
  • Track Transmission and Distribution Losses (Action 3.4): Essential: required for grid-supplied energy.
  • Track Passenger Transport To/From Site (Action 3.5): Essential: commuting distance tracked by transport mode (Operator); advanced: tracked for operator & tenants.
  • Track Freight To/From Site (Action 3.6): Essential: distance and tonnage by entity with operational control (Operator); advanced: for operator & tenants.
  • Track Other Indirect Emissions (Action 3.7): Advanced: for Purchased Goods and Services, Capital Goods, and Business Travel (Operator); exemplary: for operator & tenants.
  • Track Construction Embodied Carbon (Action 3.8): Advanced: Whole Life Carbon Assessment for modules A1-5, B1-5, C1-4 (Operator); exemplary: for operator & tenants.

Reducing Scope 3 Emissions:

  • Zero Liquid Discharge (ZLD) (Action 3.9): Essential: required. Eliminates liquid effluents by recycling industrial water, shifting associated energy consumption to Scope 1 or 2.
  • Zero Ground Water Extraction (Action 3.10): Essential: required for industrial activities. Avoids environmental harm, especially in high water-risk areas.
  • Improve Water Efficiency (Action 3.11): Essential: >30% reduction over national baseline; advanced: >40%; exemplary: >50%. Applies to industrial processes and plumbing fixtures.
  • Diversion of Waste to Recycling (Action 3.12): Essential: <25% waste to landfill; advanced: <15%; exemplary: <5% (Net Zero Waste Platinum). Coordinated with green procurement and reduction campaigns.
  • Increase Public/Shared Transport for Commuting (Action 3.15): Essential: 30% mode share; advanced: 60%; exemplary: 80%. Supports zero-emission public transport for workers.
  • Onsite Housing for Workforce (Action 3.16): Essential: 5% of workforce; advanced: 10%; exemplary: 15%. Reduces commuting GHG emissions and offers social benefits.
  • Task Force for Supply Chain Decarbonization (Action 3.17): Essential: required. Aims to align NZIP operators, tenants, and suppliers with low-carbon procurement policies.
  • Reduce Construction Embodied Carbon (Action 3.18): Essential: <675 kgCO2e/m2; advanced: <540 kgCO2e/m2; exemplary: <200 kgCO2e/m2. Achieved via building reuse, material efficiency, and low-carbon materials.

Innovating for Scope 3 Emissions:

  • Industrial Symbiosis (Action 3.19): Advanced: symbiosis between at least 2 tenants resulting in >50% diversion of individual waste streams; exemplary: >50% diversion of overall park waste stream. Transforms one industry’s waste into input for another, promoting a circular economy.
  • Advanced Freight Tracking (Action 3.20): Advanced: Verify transport tracking using Vehicle Entry Exit Monitoring (VEEM) for all onsite vehicles; exemplary: understand GHG performance by gathering shipment-level data in collaboration with carriers.
  • Low Emission Freight (Action 3.21): Advanced: <100 gCO2e/tkm (TTW); exemplary: <25 gCO2e/tkm (TTW). Encourages shifts to modes like rail and sea freight, and future electrification of road freight.
  • Low Carbon Suppliers Ecosystem (Action 3.22): Advanced: >50% of out-of-boundary suppliers set SBTs; exemplary: >90% of out-of-boundary suppliers set SBTs. Drives decarbonization across the supply chain, aligning with multinational corporate goals.

Conclusion

The Net Zero Industrial Park (NZIP) Framework stands as a crucial guide in the urgent global transition towards a Net Zero carbon future. By integrating renewable energy, advanced resource efficiency technologies, and innovative waste management solutions, it offers a pragmatic pathway for industries to balance growth and production with critical carbon emissions goals. This framework moves beyond the concept of isolated Net Zero buildings, emphasizing the leverage of complex interactions between infrastructure and stakeholders within an industrial district to achieve greater efficiencies and benefits.

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As a valuable addition to the body of knowledge on district-scale carbon accounting, the NZIP Framework empowers various stakeholders—from public and private sectors, land developers to tenants—to effectively account for and synergize their efforts towards shared Net Zero ambitions. The document underscores the instrumental role of Public-Private Partnerships (PPPs) in fostering a green economy within these industrial parks, facilitating the deployment of green technologies, financing mechanisms, and regulatory frameworks vital for achieving Net Zero objectives. This collaborative spirit fuels innovation, accelerates the adoption of sustainable practices, and cultivates an environment conducive to green investments.

To amplify its impact, the framework suggests forging international partnerships for knowledge exchange, technology transfer, and access to best practices, potentially expanding the NZIP Framework into an implementation guide and collaborating with global accreditation parties for standards setting. While tailored for industrial park typology, the NZIP Framework’s principles and approach also offer inspiration for other district types—residential, commercial, or mixed-use—to synergize and account for their operational and embodied carbon, marking a pivotal step for cities worldwide in advancing sustainability goals and tackling the transboundary challenge of climate change.

Frequently Asked Questions (FAQs) about the Net Zero Industrial Park Framework

Q1: What is the primary purpose of the Net Zero Industrial Park (NZIP) Framework? A1: The primary purpose of the NZIP Framework is to provide guidance on planning, emissions accounting, and mitigation strategies for low carbon and Net Zero industrial parks. It aims to help balance deep reductions in greenhouse gas (GHG) emissions with economic viability in industrial settings.

Q2: Who developed the NZIP Framework and for whom was it prepared? A2: The NZIP Framework was developed by the Net Zero Futures Lab (NZFL) at the Singapore University of Technology and Design (SUTD). It was prepared for the Ministry of Trade and Industry, South Asia, Middle East and Africa (MTI-SAMEA) (India Directorate).

Q3: What are the three scopes of emissions addressed in the NZIP Framework? A3: The NZIP Framework addresses three scopes of emissions:

  • Scope 1 emissions: Direct emissions generated within the geographic boundary of the industrial park site.
  • Scope 2 emissions: Indirect emissions from energy sources produced outside the site but consumed within the site boundary (e.g., purchased electricity, steam, hot/cold water).
  • Scope 3 emissions: All other indirect emissions resulting from activities occurring within the NZIP but generated outside the site boundary (e.g., out-of-boundary transport, purchased goods).

Q4: How does the NZIP Framework define its inventory boundaries for GHG accounting? A4: The NZIP Framework defines its inventory boundaries based on the geographic boundary of the industrial park site, including all GHG generating activities within that site. It aligns with the Global Protocol for Community Scale Greenhouse Gas Inventories (GPC), reporting emissions from both the park operator and tenants together.

Q5: What are the five key steps to reaching Net Zero GHG emissions as guided by the NZIP Framework? A5: The five key steps are:

  1. Preliminary planning and design.
  2. Tracking GHG emissions with inventories across all three scopes.
  3. Reducing levels of GHG emissions through efficiency, electrification, and renewable energy.
  4. Innovation via next-generation technologies.
  5. Offsetting emissions only after deep decarbonization.

Q6: What is the “Triple Bottom Line” principle in the NZIP Framework? A6: The Triple Bottom Line principle means the NZIP Framework considers economic, environmental, and social challenges alongside GHG emissions. It aims to ensure economic relevance, prioritize water-use and waste reduction, and address the social implications of its recommendations.

Q7: How does the NZIP Framework prevent “greenwashing”? A7: The framework provides a realistic, phased approach to achieving Net Zero emissions and includes checks against false claims of carbon neutrality or other types of greenwashing. It gives clear guidance on how to transparently report progress.

Q8: What is the framework’s stance on carbon offsets and emissions reduction? A8: The NZIP Framework emphasizes emissions reduction before emissions removal, stating it is always cheaper and better to prevent carbon emissions. Carbon removal should only be considered after all possible carbon emission reductions have been implemented. Offsets must be proven to truly remove CO2 and demonstrate additionality without redundancy.

Q9: Who is the target audience for the NZIP Framework? A9: The target audience includes private and public actors concerned with the development of industrial parks in developing countries. This comprises industrial park developers, operators, government agencies, regulators, and potentially tenant companies and infrastructure providers.

Q10: What is “Green Leasing” and why is it important for NZIPs? A10: Green Leasing refers to mutual agreements between the park operator and tenants on required GHG reporting and mitigation practices, and Net Zero targets, as conditions for tenancy. It is crucial for ensuring continuous communication and collaboration, incentivizing compliance, and potentially including penalties for non-compliance.

Q11: What role does “Industrial Symbiosis” play in the NZIP Framework? A11: Industrial Symbiosis is an innovation for Scope 3 emissions mitigation. It involves relationships between industrial entities where one’s waste stream becomes an input for another, promoting a circular economy. This partnership provides economic benefit while reducing waste, diverting materials from landfills.

Q12: How does the NZIP Framework encourage low-carbon freight? A12: The framework encourages low-carbon freight through site selection that prioritizes access to seaports or rail. It also promotes advanced freight tracking (Action 3.20) and setting low emission freight intensity targets (Action 3.21), anticipating the eventual electrification of road-based freight.

Q13: What are the key strategies for reducing Scope 1 stationary energy emissions in an NZIP? A13: Key strategies include electrification of industrial processes combined with the use of renewable power sources. The framework sets targets for significant reductions, aiming for near elimination of stationary emissions over time.

Q14: How does the NZIP Framework suggest dealing with Scope 3 emissions, given their complexity? A14: The NZIP Framework acknowledges that Scope 3 emissions are the most challenging to mitigate due to their indirect nature and reliance on the entire value chain. It recommends pursuing “Net Zero Scope 3 emissions” source by source and category by category, focusing on deep decarbonization efforts and clear communication. It currently does not prescribe the use of carbon credits for Scope 3 offsetting, pending evolving international guidance.