The GHG Protocol is updating Scope 2 rules to ensure more realistic, transparent, and comparable electricity-related emissions reporting. Emissions will be tracked based on location and time to improve accuracy and transparency.
The Greenhouse Gas Protocol (GHG Protocol), globally recognized as the standard for greenhouse gas emissions accounting, is undergoing a significant update regarding electricity-related (Scope 2) emissions reporting. The aim is to enable companies to report emissions from electricity use more realistically, transparently, and comparably, based on time and location.
Current Situation and Identified Issues
Currently, companies can report "zero emissions" for purchased electricity by using renewable energy certificates (RECs), even if they did not produce the electricity themselves. For example, a company in Istanbul can offset its electricity use with a certificate from a solar plant in California. However, this approach may not accurately reflect reality due to geographic and temporal mismatches (source).
The GHG Protocol has stated that this undermines the reliability, accuracy, and comparability of emissions data—prompting the launch of this update process.
Key Components of the Update
The revised Scope 2 standard is based on two main components:
Comprehensive Inventory Reporting:
Emissions from electricity use must account for both the generation and consumption locations. Furthermore, the timing of generation and consumption must align.
This means companies can only claim “zero emissions” if the clean energy is generated within the same grid region and at the same time as it is consumed.
Marginal Emissions Impact:
Clean energy projects that reduce fossil fuel use, even if not directly aligned with consumption time, will still be recognized for their climate impact.
This allows companies to report such efforts in a separate category, enhancing the credibility of emissions data and recognizing the true environmental benefits of renewable energy.
Decision-Making and Implementation Process
The Technical Working Group (TWG) of the GHG Protocol plays an active role in preparing the update.
The process includes two phases:
Phase 1 focuses on clarifying core reporting methods,
Phase 2 will dive into more complex topics.
The process is overseen by the Independent Standards Board, considering scientific accuracy, impact, and feasibility (source).
To date, 14 TWG meetings have been held, and public consultation is expected between late 2025 and early 2026.
Reporting Structure Options
Four main reporting approaches have been proposed by the TWG:
Dual location- and market-based reporting + optional project-based reporting
Market-based only + optional project-based
Location-based only + mandatory or recommended project reporting
Mandatory dual location- and market-based + mandatory/recommended project reporting
Option 4 is emerging as the most favorable in terms of scientific robustness, transparency, decision support, and practicality (energytag.org).
Implementation Challenges
Time- and region-specific reporting may present technical and operational challenges, especially for smaller users. Therefore, a phased transition using monthly or yearly data instead of hourly is planned.
Guidance for non-standard regions and specific energy market characteristics is also under development.
Timeline and Outlook
2023: Public surveys & initial analyses
2024–2025: TWG meetings
Q4 2025: Public consultation on the first draft
2026: Completion of Phase 2
End of 2027: Official standard publication & phased implementation
Why It Matters
This is more than an accounting change—it will create a more objective, comparable, and science-aligned system. Renewable energy investments will become more visible, and companies will be incentivized to take genuine climate action.
The GHG Protocol's revision represents a meaningful structural shift in managing electricity-related emissions and is crucial for transparency and scientific integrity—especially for institutions aiming for net-zero goals.
More information:
GHG Protocol - Scope 2 Technical Working Group Progress Update