Carbon footprint accounting is the core driver for REGEN to transform its "carbon neutrality advantages" into "market competitiveness". Its implementation goes beyond theoretical层面; instead, it forms a complete closed loop of "standard benchmarking - process breakdown - value realization". The specific details are as follows:

I. Core Benchmarking Standards: Focusing on International Recognition to Adapt to Global Markets 

REGEN adopts a "dual-standard parallel" accounting system to ensure that carbon footprint data is recognized in both domestic and international markets:

 

50. Basic Standard: ISO 14067 (Specification with Guidance at the Organization Level for Quantification and Communication of Greenhouse Gas Emissions and Removals) This is a globally accepted core standard that covers the entire product life cycle (from used part recycling → repair → production → transportation → use → disposal). Taking this as a framework, REGEN ensures that the accounting boundaries, data sources, and calculation methods comply with international general rules, avoiding the situation where "low-carbon advantages are not recognized" during export due to inconsistent standards.

50. Supplementary Standard: PAS 2050 (Specification for the Assessment of the Life Cycle Greenhouse Gas Emissions of Goods and Services) It focuses on the "detailed breakdown of life cycle stages" and is used to supplement the accounting of segmented carbon emissions in the repair process (such as energy consumption of laser cladding repair and carbon footprint of cleaning agents). This makes the data more accurate, especially suitable for markets with high requirements for carbon footprint details, such as the European Union and Southeast Asia.

 

II. Full Life Cycle Process Breakdown: Accurately Locating the Core of Carbon Reduction with Traceable Data

REGEN divides the carbon footprint of remanufactured gearboxes into 5 key processes. Each process has clear accounting methods and carbon reduction data support, and all data comes from actual production records (not theoretical estimates):

1.Process 1: Used Part Recycling (Core Carbon Reduction Process 1)

50. Accounting Scope: Logistics carbon emissions generated during the transportation of used gearboxes from customer plants (such as domestic mines and Southeast Asian nickel mines) to the remanufacturing factory. The calculation is based on transportation methods (fuel consumption and load capacity of road/sea transportation).

50. Carbon Reduction Logic: Compared with the front-end processes of new products (from iron ore mining → steel smelting → gear forging), which account for 55%-60% of the carbon footprint of new products, remanufacturing skips this stage directly and only generates "used part transportation carbon emissions". For a single 200kW gear reduction motor, the carbon emissions in this process can be reduced by approximately 8.2 tons. (Calculated based on 500km road transportation from domestic mines to Guizhou factories, the transportation carbon emissions are only 0.3 tons, and the carbon reduction rate exceeds 96% compared with 8.5 tons of front-end carbon emissions of new products.)

 

Process 2: Repair and Processing (Core Carbon Reduction Process 2) 

50. Accounting Scope: Energy consumption of electric tools for used part disassembly, production carbon emissions of environmentally friendly cleaning agents + energy consumption of cleaning equipment, electric energy consumption of laser cladding/arc spraying for defect repair, and electric energy consumption of assembly line motors for precision assembly. -

50. Carbon Reduction Logic: Compared with "new gear processing (requiring large CNC machine tools with high energy consumption)" for new products, remanufacturing only repairs defective parts, resulting in significantly lower energy consumption. Taking gear repair as an example: the energy consumption for repairing a worn gear through laser cladding is approximately 80kWh, while the energy consumption for new gear processing is 350kWh. The carbon emissions in the single gear repair process can be reduced by approximately 0.18 tons (calculated based on the average carbon emission factor of Guizhou power grid, which is 0.58 tons of CO₂/MWh), and the overall carbon emissions in the repair process of a single piece of equipment can be reduced by approximately 0.8-1.2 tons.

 

Process 3: Auxiliary Production (Supported by Low-Carbon Operation)  

50. Accounting Scope: Electricity consumption for factory production (including photovoltaic power generation), heating/refrigeration of factory buildings, and carbon emissions from employee commuting. -

50. Carbon Reduction Logic: The REGEN factory has built a 1.2MW photovoltaic power generation system with an annual power generation capacity of approximately 1.2 million kWh, which can cover 30% of the electricity consumption for production. This part of electricity is calculated as "zero-carbon" (the carbon emission factor of photovoltaics is much lower than the average level of the power grid). The carbon emissions of a single piece of equipment in this process can be further reduced by 0.15 tons, further expanding the low-carbon advantages.

Process 4: Finished Product Transportation (Adapting to Export Scenarios)

50. Accounting Scope: Logistics carbon emissions generated during the transportation of remanufactured gearboxes from the Guizhou factory to domestic customers or exported to Southeast Asia (such as Indonesia and Vietnam). For sea transportation, the calculation is based on container load capacity and sailing speed; for land transportation, it is based on truck fuel consumption. -

50. Differentiated Operation: For export orders, REGEN will separately mark "sea transportation carbon emissions" in the carbon footprint report and provide a "carbon offset plan" (such as purchasing domestic forestry carbon sinks to offset this part of emissions). This enables the products to meet the "near-zero carbon delivery" standard and satisfy the low-carbon requirements of some multinational enterprises in Southeast Asia (such as the Toyota supply chain).

Process 5: Use and Disposal (Long-Term Carbon Reduction Value)

50. Accounting Scope: Energy consumption carbon emissions of remanufactured products during the use stage (calculated based on motor efficiency) and recycling carbon emissions of used parts after disposal. -

50. Carbon Reduction Logic: The motor efficiency of REGEN remanufactured gearboxes is increased to 94%-95% (the rotor structure is optimized during repair). Compared with old equipment (with an efficiency of 88%-90%), a single piece of equipment can reduce carbon emissions by approximately 0.5-0.8 tons during the annual use stage (calculated based on 8,000 hours of annual operation and a load rate of 70%). During the disposal stage, the core components can be recycled again to form a "secondary cycle", further reducing the end-of-life carbon emissions.

 

III. Value Realization: Carbon Footprint Data Directly Transformed into "Order Competitiveness" and "Carbon Asset Income"

1.Addressing International Green Trade Barriers (Key to Export Earnings)

Taking the EU Carbon Border Adjustment Mechanism (CBAM) as an example: If gearboxes are included in the CBAM taxation scope in the future (currently, CBAM already covers fields such as steel and cement, and mechanical and electrical products are potential expansion directions), based on the 2024 EU carbon price of approximately 85 Euros/ton, compared with new products (with a carbon footprint of approximately 10 tons per unit), REGEN remanufactured products (with a carbon footprint of approximately 1.5 tons per unit) can reduce CBAM tax burden by approximately 722.5 Euros per unit ((10-1.5)×85). This is directly transformed into the competitiveness of export quotations, making Southeast Asian customers more willing to choose Guangda's "low-carbon + low-cost" products.

2.Domestic Carbon Asset Development (New Revenue Channel)

REGEN has included the carbon reduction volume of its remanufacturing business in the development reserve of "China Certified Emission Reduction (CCER)". Based on an annual production capacity of 10,000 units and an annual carbon reduction of 5 tons per unit, it can generate 50,000 tons of carbon reduction volume annually. If these carbon reduction volumes are successfully registered as CCER in the future (the current CCER transaction price is approximately 70 yuan/ton), it can create an additional annual carbon asset income of 3.5 million yuan. Moreover, with the rise of carbon prices, this part of income will further increase, realizing the dual value of "carbon reduction" and "income increase".