Location-Based Scope 2 Accounting

Definition

Location-Based Scope 2 Accounting is a method under the GHG Protocol to quantify Scope 2 GHG Emissions based on average energy generation emission factors for defined locations, including local, subnational, or national boundaries.

The average Direct GHG Emissions intensity (also called the location-based emissions rate) will be the same for all customers located in an area or region regardless of their supplier or purchases.

Scope of Application

This method can apply in all locations since the physics of energy production and distribution functions the same way in almost all grids.

Calculation Methodology

Emission factors representing average emissions from energy generation occurring within a defined geographic area and a defined time period. The location-based method is based on statistical emissions information and electricity output aggregated and averaged.

Usage

• Reflecting GHG intensity of grids where operations occur, regardless of market type
• Capturing the aggregate GHG performance of energy-intensive sectors (for example, comparing electric train transportation with gasoline or diesel vehicle transit)
• Identifying risks/opportunities aligned with local grid resources and emissions

An energy consumer's emissions associated with purchased electricity defined as the average Direct GHG Emissions intensity (e.g. in metric tons per MWh) of all generation within a geographic area or electricity grid region that includes the consumer multiplied by the consumer’s electricity consumption.

Delivered Renewable Energy equals Generated Renewable Energy, and does not recognize Actively Procured Renewable Energy or Voluntary Renewable Energy. It is calculated using Attributional GHG Accounting.

See Also

• Market-Based Scope 2 Accounting
• Territorial GHG Accounting

Issues and Challenges

• Grid average emission factors should be distinguished from supplier-specific emission factors. While utilities may be the sole energy provider in a region and produce a supplier-specific emission factor that closely resembles the overall regional grid average emissions factor, this utility-specific information should still be categorized as Market-Based Scope 2 Accounting due to the wide variation in utility service areas and structures.

References

• GHG Protocol Scope 2 Guidance (2015)
• CRS Glossary