Market-Based Scope 2 Accounting
Contents
Definition
Market-Based Scope 2 Accounting is a GHG Protocol method to quantify Scope 2 GHG Emissions based on GHG emissions emitted by the generators from which the reporting contractually purchases electricity bundled with instruments, or unbundled instruments on their own.
Scope of Application
To any operations in markets providing consumer choice of differentiated electricity products or supplier-specific data, in the form of contractual instruments.
Calculation Methodology
Emission factors derived from the GHG emission rate represented in the contractual instruments that meet Scope 2 Quality Criteria
Usage
- Individual corporate procurement actions
- Opportunities to influence electricity suppliers and supply
- Risks/opportunities conveyed by contractual relationships, including sometimes legally enforceable claims rules
An energy consumer's GHG Emissions associated with purchased electricity defined as the Direct GHG Emissions intensity (e.g. in metric tons per MWh) of generators from which the consumer contractually purchases, either directly or through a utility or supplier electricity product (i.e. the supplier’s contractual agreements with specified generators and unspecified power purchases), multiplied by the amount purchased (e.g. in MWh).
Reflects delivery and consumption of differentiated electricity (including renewable energy) and associated Direct Emissions to different customers based on their supplier, purchases, and contractual instruments (e.g. RECs).
This accounting approach reflects both Actively Procured Renewable Energy and Standard Delivery Renewable Energy, as well as Voluntary Renewable Energy and renewable energy used for compliance.
The methodology does not consider the average emissions in the location where electricity use occurs.
A market-based scope 2 accounting system where all energy units feeding the distribution network or Grid have associated contractual attributes is termed a Full Disclosure Framework.
See Also
References
- GHG Protocol Scope 2 Guidance (2015)
- CRS Glossary
