The following is an article originally published by Sustainability Magazine on September 24, 2025.

By Laith Amin, Vice President, Growth and Strategic Development at EcoEngineers

Laith Amin, Vice President, Growth and Strategic Development at EcoEngineers, on turning compliance into business advantage

For years, the energy and industrial sectors have treated compliance as a necessary cost of doing business. Regulations were viewed as hurdles, tax credits as short-term windfalls and carbon accounting as a paperwork exercise. But we are now at a turning point: life-cycle analysis (LCA) is proving that when done strategically, compliance can evolve into a powerful tool for unlocking revenue and securing long-term competitiveness.

Recent policy changes, including the passage of the One Big Beautiful Bill Act (OBBBA) in the US, have only sharpened the stakes. By linking major incentives directly to LCA outcomes, regulations elevate accurate carbon intensity modelling to a financial imperative. Industries such as ethanol, hydrogen, sustainable aviation fuel (SAF), renewable diesel, biogas and carbon dioxide removal are among those where LCA results directly determine tax credit values, access to markets and revenue potential.

With tax credits in the US Inflation Reduction Act (IRA), such as 45V for hydrogen, 45Z for clean fuels and 45Q for carbon capture now tied directly to carbon intensity outcomes, a single point reduction in an LCA score can often translate into millions of dollars of value. Consider an ethanol plant producing 100 million gallons annually: improving its carbon intensity (CI) by just one point could yield US$2m in additional revenue. That’s not an engineering retrofit—it’s the result of smart modelling, accurate data and a disciplined approach to understanding your environmental footprint.

The Power of Measurement

At its core, LCA provides a structured methodology to measure a product’s environmental impact from raw material extraction through end-of-life. By mapping every stage of production and use, it enables organisations to identify hotspots where emissions or resource use are highest, then prioritise improvements.

Small shifts in carbon intensity can deliver outsized results. For example, hydrogen developers achieving a carbon intensity below 0.45 kg CO₂ per kilogram of hydrogen may qualify a project for the most lucrative federal tax credits, worth millions of dollars annually.

LCAs also play a central role in the voluntary carbon markets (VCMs), where methodologies for credits such as biochar, afforestation or carbon removal projects are built directly on LCA principles. Here, accurate modelling is essential not just for compliance but for generating and monetising high-integrity credits. Beyond ethanol and hydrogen, fuels such as SAF, renewable diesel and biogas all rely on LCAs to determine eligibility for incentives, establish market competitiveness and build trust with stakeholders.

Managing Risk Across Borders

LCA is not only about maximising credits; it is also about mitigating risks. With mechanisms such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) coming online, exporters who fail to validate their emissions data could face costly trade penalties. Verification requirements vary across jurisdictions, and companies must be prepared to demonstrate compliance not just once, but year after year. Here again, LCA is more than an academic exercise, it is a passport to global market—and as we look forward, few will be surprised to see regulators set emissions intensity factors on the high side as a way to encourage organizations to build LCA data and modelling competency.

Building Strategic Competence

Organisations face a choice. Some will outsource LCA entirely to accredited third parties, ensuring compliance but limiting their ability to test scenarios against operational improvements. Others are moving toward building in-house competence, developing teams that can run their own models, conduct sensitivity analyses and embed LCA into daily operations.

The most successful firms will blend both approaches: leveraging external expertise for verification and regulatory alignment, while cultivating internal capabilities to remain nimble and seize emerging opportunities.

From Compliance to Value Creation

The lesson is clear: LCA is no longer optional. It is a strategic requirement for accessing incentives, managing risk and creating shareholder value. Companies that treat LCA as a core business process will not only stay ahead of regulators, they will refine their operating model to unlock new revenue streams, strengthen customer trust and position themselves as leaders in the energy transition.

For those ready to take the next step, there are communities of practice forming where regulators, scientists and industry peers come together to explore best practices and hands-on applications of LCA. One such opportunity is the upcoming LCA Academy in Houston, taking place on October 7-8, hosted by EcoEngineers and LRQA—it’s designed as a deep dive for both leaders and practitioners who want to strengthen their capabilities, reduce uncertainty and turn compliance into a competitive advantage.

The future belongs to organisations that measure to improve rigorously, act strategically and treat compliance not as a burden, but as an advantage. LCA is the key to making that shift, and the time to start is now.

For more information about our LCA services and capabilities, contact: 

Laith Amin, Vice President, Growth and Strategic Development | lamin@ecoengineers.us  

About EcoEngineers

EcoEngineers, an LRQA company, is a consulting, auditing, and advisory firm exclusively focused on the energy transition and decarbonization. From innovation to impact, EcoEngineers helps its clients navigate the disruption caused by carbon emissions and climate change. Its team of engineers, scientists, auditors, consultants, and researchers live and work at the intersection of low-carbon fuel policy, innovative technologies, and the carbon marketplace. For more information, visit www.ecoengineers.us.