Difference between revisions of "Location-Based Scope 2 Accounting"

From Open Risk Manual
Line 1: Line 1:
 
== Definition ==
 
== 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.
 
''' 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.
 +
 +
This method can apply in all locations since the physics of energy production and distribution functions the same way in almost all grids.
 +
The location-based method is based on statistical emissions information and electricity output aggregated and averaged
 +
within a defined geographic boundary and during a defined time period.
  
 
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.  
 
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.  
Line 11: Line 15:
 
* [[Market-Based Scope 2 Accounting]]
 
* [[Market-Based Scope 2 Accounting]]
 
* [[Territorial GHG 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 ==
 
== References ==

Revision as of 17:04, 9 June 2023

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.

This method can apply in all locations since the physics of energy production and distribution functions the same way in almost all grids. The location-based method is based on statistical emissions information and electricity output aggregated and averaged within a defined geographic boundary and during a defined time period.

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.

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.

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

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