Greenhouse Gas Protocol Scope 2 Guidance

Greenhouse Gas Protocol Scope 2 Guidance

The Greenhouse Gas Protocol (GHG-P) is the most widely used international accounting framework to understand, quantify, and manage greenhouse gas emissions. The Greenhouse Gas (GHG) Protocol is a multi-stakeholder partnership of businesses, non-governmental organizations (NGOs), governments, and others convened by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

To easily and transparently report emissions and origin of the electricity consumed, the World Resources Institute January 2015 presented an updated Greenhouse Gas Protocol Accounting Guidance Scope 2.

GHG Protocol Scope 2 Guidance features GOs, RECs and I-RECs

In Scope 2’s Accounting Guidance Guarantees of Origin (GOs), RECs and I-RECs are directly featured as mainstream instruments for documenting and tracking electricity consumed from renewable sources. The clarification companies will gain from the GHG Protocol Scope 2 Guidance has the potential to transform energy buying practices in the corporate world.

The GHG-P Scope 2 categorises indirect emissions from consumption of purchased electricity, heat or steam. “By the Scope 2 Accounting Guidance including Guarantees of Origin as best practice tracking system of power attributes, more companies are encouraged to document their use of electricity from renewable sources,” said Tom Lindberg, Managing Director, ECOHZ.

“Guarantees of Origin reduce companies’ CO2 footprint, increase awareness of the origin of the electricity consumed and send a signal to the market that companies prefer electricity from renewable energy sources. Over time this documented demand for low carbon energy solutions will change energy behaviour.”

This will encourage businesses to measure, manage and report their greenhouse gas emissions from their electricity consumption and increasingly switch to power from renewable sources.

GO2 and EKOenergy: making an impact for the future power mix

The GHG-P Scope 2 recommends GO2 and EKOenergy as relevant and recommendable products to engage further in the promotion of renewable power.

Key changes in accounting and reporting electricity emissions (Scope 2)

Key changes:

  • For most companies, Scope 2 is no longer one number—it is two: reporting Scope 2 includes a location-based method and a market-based method
  • Instruments used as emission factors in the market-based method must meet Scope 2 Quality Criteria
  • Companies should disclose key features and policy context of their contractual instruments.