Scope 2 GHG Emissions
Scope 2 GHG Emissions. Indirect GHG Emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company or other entity. Scope 2 emissions physically occur at the facility where electricity is generated.
The definition of Scope 2 excludes emissions from electricity purchased for resale - these are now included in Scope 3 GHG Emissions.
Scope 2 emissions represent one of the largest sources of GHG emissions globally and frequently the most significant opportunity to reduce these emissions.
The generation of electricity and heat now accounts for at least a third of global GHG emissions. Electricity consumers have significant opportunities to reduce those emissions by reducing electricity demand, and increasingly play a role in shifting energy supply to alternative low-carbon resources (See Sustainable Electricity)
- Scope 2 emissions physically occur at the facility where the electricity, steam, heating, or cooling is generated.
- Scope 2 GHG emissions will primarily be calculated from metered electricity consumption and supplier-specific, local grid, or other published emission factors.
Calculation Approach Details
Scope 2 GHG emissions will primarily be calculated from metered electricity consumption and supplier-specific, local grid, or other published emission factors. The GHG Protocol Corporate Standard recommends that entities obtain source/supplier specific emission factors for the electricity purchased. If these are not available, regional or grid emission factors should be used.
There are two types of electricity emission factors: Emission factor at generation (EFG) and Emissions factor at consumption (EFC).
- EFG is calculated from CO2 emissions from generation of electricity divided by amount of electricity generated.
- EFC is calculated from CO 2 emissions from generation divided by amount of electricity consumed.
These emission factors are related. EFC multiplied by the amount of consumed electricity yields the sum of emissions attributable to electricity consumed during end use and transmission and distribution. In contrast, EFG multiplied by the amount of consumed electricity yields emissions attributable to electricity consumed during end use only.
The GHG Protocol Corporate Standard requires the use of EFG factors to calculate Scope 2 emissions. The use of EFG ensures internal consistency in the treatment of electricity related upstream emissions categories and avoids double counting in scope 2. Additionally, there are several other advantages in using EFG:
- simpler to calculate and widely available in published regional, national, and international sources
- based on a commonly used approach to calculate emissions intensity, i.e., emissions per unit of production output
- ensures transparency in reporting of indirect emissions from TD losses
Emissions from Transmission and Distribution Losses
Emissions from the generation of purchased electricity that is consumed during transmission and distribution are reported in scope 2 by the company that owns or controls the Transmission and Distribution (TD) operation. End consumers of the purchased electricity do not report indirect emissions associated with TD losses in scope 2 because they do not own or control the TD operation where the electricity is consumed (TD loss).
To calculate scope 2 emissions, the Corporate Standard recommends multiplying activity data (MWhs of electricity consumption) by source and supplier-specific emission factors to arrive at the total GHG emissions impact of electricity use. Concrete methods:
GHG emissions occurring as a consequence of the use of grid-supplied electricity, heat, steam and/or cooling within the city boundary.
- The Greenhouse Gas Protocol, A corporate accounting and reporting standard, Revised Edition 2008
- Global Protocol for Community-Scale Greenhouse Gas Inventories, An Accounting and Reporting Standard for Cities, Version 1.1, 2021. WRI, C40, IOCLEI