GHG Scope 2 (Market & Location)

In short

Purchased-energy emissions under the location- and market-based methods.

What it is

The GHG Protocol Scope 2 Guidance is an amendment to the Corporate Standard that standardizes how organizations account for emissions from purchased or acquired electricity, steam, heat, and cooling. It requires companies to report scope 2 emissions using two methods, a location-based method that uses average grid emission factors and a market-based method that reflects contractual instruments such as renewable energy certificates and supplier-specific rates. The guidance sets eight quality criteria that contractual instruments must meet to be used in market-based accounting. Emissions are reported in metric tons of carbon dioxide equivalent, and the guidance does not create tradable credits.

What it rewards

The reward is a credit called a GHG Inventory Statement (INV). One credit stands for one tonne of carbon dioxide kept out of the atmosphere (or taken back out of it). An assured organisational GHG inventory. A whole period of work is issued as one batch of credits at a time, in the same way a registry issues a batch.

What gets measured

To earn INV credits, a project has to measure and prove a few things. An independent reviewer checks the evidence before any credits are issued.

• Which parts of the organisation are being counted (its reporting boundary).

• The activity data for every source of emissions, across the relevant scopes.

• The resulting total, expressed in tonnes of carbon dioxide equivalent.

Who takes part

• Programme Administrator. Owns the protocol and approves reporters.

• Reporting Entity. Defines the inventory boundary and reports activity data.

• Verification Body. Provides limited or reasonable assurance over the inventory.

How it works

1. 1

   The organisation decides which parts of itself to count.

2. 2

   It gathers the activity data for every source of emissions.

3. 3

   The emissions are worked out using standard factors.

4. 4

   An independent reviewer checks the numbers for confidence.

5. 5

   The finished inventory is published as a statement of emissions.