How Refiners Can Reduce Scope 3 Emissions

Jul 15, 2025   Written by Michelle Wicmandy, Ritik Attwal, Ujjval Bhat

From Carbon Blind Spots to Strategic Targets

Diagram showing scope 3 emissions from energy, transport, materials, agriculture, and refineries Figure 1. Scope 3 emissions span energy, transport, materials, agriculture, and downstream consumption

For oil and petrochemical producers, the biggest emissions risk doesn’t stay put. It slips through tailpipes, escapes from smokestacks, and rides along every mile of the value chain. It’s the invisible passenger in every barrel—the carbon shadow that trails each product long after it leaves the refinery gate, as shown in Figure 1. And that shadow? It’s Scope 3. Elusive, expansive, and essential to address.

See the Forest, Then Focus on the Trees

While the Greenhouse Gas Protocol lists 15 Scope 3 groups, refiners find most emissions fall into just five areas:

1. Purchased goods and services, like crude oil
2. Transport of raw materials to the refinery
3. Distribution of processed gasoline
4. Processing products by downstream users
5. End-use combustion such as fuels burned in vehicles

Focusing on these categories provides the best chance to make a difference. In fact, the use-phase alone (Category 11) can make up over 75% of lifecycle emissions.

KBC IP3EM Figure 2. IP3EM connects processes, emissions, and economic modeling for full value chain visibility

Make Scope 3 a Measurable Goal

Scope 3 emissions are often blind spots: unseen, unmanaged, and underestimated. But for Bringing Decarbonization to Life®, refiners must move beyond the fence-line. This is where integrated modeling steps in.

Figure 2 shows how KBC's IP3EM allows refiners to model their operations alongside emissions and economic data. When paired with the GREET® model and the BT Index, this method helps teams:

  • Chart emissions across the entire value chain
  • Assess the carbon impact of shifts in feedstock or energy mix
  • Rank actions based on feasibility and potential returns

This type of insight transforms Scope 3 from a vague concept into something concrete and manageable.

Replace Fossil Inputs with Low-Carbon Options

Reducing Scope 3 isn’t about doing less. It’s about doing things differently. One of the most effective ways to reduce Scope 3 emissions is to substitute fossil feedstocks with bio-based or recycled materials. Examples include:

  • Mixing and/or producing bioethanol, biodiesel, renewable diesel, or SAF
  • Using biomethane or other renewable gases
  • Co-processing waste oils, agricultural/forestry leftovers, or pyrolysis oils

Biogenic emissions, when sourced sustainably, are often seen as carbon-neutral, which significantly cuts emissions without losing output.

Put Decarbonization into the Driving Seat

Targeting Scope 1, 2 and 3 emissions in a complete decarbonization strategy brings unique opportunities to get the full benefit of alternate feedstocks.

Not every solution works for every site. To move forward, you need to balance technical, operational, and business realities. That means evaluating four core dimensions:

  1. Hotspots and Low hanging Fruit – Where is the carbon concentrated? Which carbon removal is commercially viable now?
  2. Operational fit – Will changes disrupt current assets, yield structures, and product specs.
  3. Economics and market – What’s the cost benefit, including carbon premiums and certificate barriers?
  4. Logistics and infrastructure – Is the site ready to handle new inputs and outputs (ie: check space, storage, and transport readiness)?

A decarbonization plan works when it’s driven by continuous, incremental actions and regularly reviewed in light of evolving conditions instead of long-term ambitions for 2050 or 2060.

Let’s Move Decarbonization Goals into Active Roadmap

A credible roadmap begins by establishing a clear baseline across Scopes 1, 2, and 3. From there, industry can rank high-impact initiatives, collaborate with suppliers, and model outcomes using real-world variables.

Appropriate intensity-based (i.e., emissions per ton of product) and/or absolute reduction targets can be defined or achieved with the clarity of a credible roadmap — and revisited as technologies, markets, and mandates evolve.

Let’s begin the journey by tracing the carbon trail from barrel to tailpipe and taming Scope 3 emissions via the right projects, powered by integrated modeling and collaborative action. That’s how you stop chasing the carbon shadow and start Bringing Decarbonization to Life.

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