The World Resources Institute recently published new guidlines for entities to measure greenhouse gas (GHG) emissions from purchased electricity, Scope 2 emissions. This is the first major update to the GHG Protocol in many years, and responds to changes in the electricity market. The new GHG Protocol Scope 2 Guidance (http://ghgprotocol.org/scope_2_guidance) provides the methodology for entities to compute and report revised Scope 2 based on different types of electricity purchases.

The guidance offers methodology for companies producing their own electricity from renewable sources, such as solar and wind. This electricity may be used in-house or sent into the grid. It allows estimation of GHG emissions for a building who may be a net developer of electricity for certain periods of a year and a net user of electricity from the grid during other periods. This report also allows calculation of GHG emission credits from companies that invest in renewable power, such as purchasing renewable emission certificates (RECs). The report also offers case studies of 12 companies that have already used the new guidance. The USEPA and The Climate Registry support the new guidance.

Scope 2 GHG emissions derive from activities even though the emissions physically occur outside the facility due to purchasing of electricity, steam, or cooling water. (Scope 1 is GHG emissions at the facility, such as combusting a fuel by a piece of equipment or vehicle.) Normally, companies purchase electricity for their facilities from the grid, and report these Scope 2 GHG emissions based on the emission factors of the main power plants that supply the electricity the facility is purchasing electricity from in the area. However, as more and more facilities either are purchasing “green” credits (such as RECs) and power purchase agreements and are investing in renewable means to produce their own energy, this accounting has now grown more complex. These contracts and agreements vary and are accounted differently from nation to nation, and this has been determined to be a problem to more accurately estimate GHG emissions.

The Scope 2 Guidance now allow companies to better compare and make decisions on purchase or renewable options based on GHG emission reduction targets.

CCES has the experts to perform a GHG emissions inventory (“carbon footprint”) for your company’s diverse facilities and operations using WRI and The Climate Registry procedures, including these revised procedures. Contact us today at 914-584-6720 or at karell@CCESworld.com.