When two or more companies engage in joint operations of any sort in any step of a value chain and at the time of reporting emissions use different consolidation approaches (one company follows equity share approach while the other follows the financial control approach for example) emissions from that joint operation can be double counted.

Double counting needs to be avoided in trading schemes and government reporting to keep an accurate global tracking of emissions and sustain the credibility of emission trading systems.

Source: GHG Protocol Corporate Standard