The regulatory landscape for refineries is becoming increasingly complex, further compounded by the requirements of voluntary standards. At the same time, the pressure to decarbonize is accelerating. For refinery operators producing a wide array of products, it is essential to understand which frameworks apply, and how to comply with them.
The first blog of this series, “From complexity to clarity,” explored how life cycle assessments (LCAs) helps refinery operators understand and manage emissions across complex systems. Building on this foundation, this blog examines how LCAs enable compliance with evolving regulations and standards, while also supporting practical decarbonization strategies.
A complex landscape of climate-related regulations and standards
Refineries operate within a dense ecosystem of regulations and voluntary schemes. While ISO 14040/14044 provides the foundational framework for LCAs , the real challenge lies in navigating overlapping and evolving requirements.
These include:
- The Renewable Energy Directive (RED II) and its evolving guidelines for renewable energy mandates
- CORSIA (IACO) for sustainable aviation fuels, with strict life cycle GHG thresholds for low-carbon aviation fuels (LCAF)
- The IMO Net Zero framework, requiring well-to-wake assessments for marine fuels
- Certification schemes such as ISCC+ and ISCC CORSIA, which enforce detailed traceability and biogenic carbon accounting
- TfS (Together for Sustainability) for product carbon footprint (PCF) reporting in the chemical industry
- Industry-specific methodologies, such as ATIEL/UEIL and API 1533 for base oils, lubricants and specialty products
The challenge is to remain adaptive while complying with these multi-dimensional requirements using a single, robust LCA model. Flexibility is key: adjusting system boundaries, applying advanced allocation rules, switching environmental impact assessment methods, activating biogenic carbon credits, incorporating mass balance approaches, and evaluating multi-product refinery outputs through a holistic manner.
Simple tools, such as Excel-based models, are not sufficient to meet these requirements. Instead, flexible, expert-level modeling solutions are needed to support both compliance and strategic decision-making.
Measuring the decarbonization potential of sustainable fuels
Refineries can actively advance decarbonization by integrating bio-based and circular feedstocks into their operations. This enables the production of sustainable fuels, such as renewable diesel and sustainable aviation fuel (SAF), which can significantly reduce emissions, especially in hard-to-abate sectors.
These fuels can often be produced using existing refinery infrastructure, allowing for immediate emissions reductions without requiring entirely new assets.
However, introducing bio and circular feedstocks adds new layers of complexity when assessing their carbon impacts:
- Quantifying the upstream emissions of feedstocks
- Co-processing different feedstock types within existing units, including their implications and processing parameters
- Tracking bio- and circular-feedstock pathways through the refinery
- Allocating biogenic carbon content across multiple products
- Aligning with diverse certification and reporting standards
Without a robust LCA methodology and a flexible modeling approach, these challenges can quickly become unmanageable, turning sustainability efforts into a regulatory and operational burden.
The role of LCA as a Strategic Enabler
A reliable LCA approach provides the foundation for navigating both regulatory compliance and decarbonization strategies. As discussed in the previous blog, an LCA can equip refinery operators with the system-wide perspective needed to avoid shifting emissions and to identify true reduction opportunities. In this context, an LCA is no longer just a compliance tool, it becomes a strategic asset.
Enabling the Transition with Sphera
Sphera supports refinery operators with advanced LCA modeling expertise, comprehensive data and flexible software solutions.
Customized LCA refinery models developed by Spehra’s experts are designed to adapt to evolving requirements and are supported by comprehensive, annually updated Sphera’s MLC datasets, including detailed crude production life cycle inventory (LCI) data across global regions.
The versatility of these models allows them to reflect real refinery configurations and operating conditions, account for diverse feedstock supply chains, integrate emerging technologies, and ensure transparency, consistency and completeness of results.
With these capabilities, refineries can move beyond compliance and leverage LCAs as a driver for unlocking new opportunities in sustainable fuels and low-carbon energy systems.
Explore how Sphera’s experts supported a global energy company throughout its sustainability transformation journey.
Read next: Customer success story: Moeve’s decarbonization journey with Sphera
