Understanding the GHG Protocol Scope 2 Revision and Clean Incentive’s Role

The Importance of GHG Protocol Scope 2

The Greenhouse Gas Protocol (GHGP) Scope 2 Guidance, established by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), is the global standard for corporate emissions reporting. It specifically addresses how organizations should account for greenhouse gas emissions related to purchased electricity.

As corporate sustainability strategies advance, traditional annual renewable energy certificates (RECs) have proven insufficient for accurately reflecting actual emissions reductions. The current revision process for the Scope 2 guidelines represents a pivotal moment for global climate accountability, influencing billions of dollars in renewable energy investments and procurements.

Current Challenges and Industry Stakes

Presently, corporate renewable energy buyers are divided into two primary procurement methodologies:

• 24/7 Hourly Matching: Organizations match electricity consumption precisely to renewable energy generation at an hourly level.

• Impact-Based Accounting: Organizations target procurement to specifically displace high-emission fossil fuel generation, maximizing carbon reductions.

The ongoing GHGP Scope 2 revision is critical because it will shape how these approaches are recognized, reported, and incentivized, directly affecting the direction of substantial corporate investments in renewable energy globally.

Clean Incentive’s Granular Registry and Marketplace: Bridging the Divide

Clean Incentive’s Granular Registry and Marketplace is strategically positioned to unify these previously distinct methodologies. The platform:

• Converts traditional RECs into Granular Certificates (GCs), providing precise hourly timestamping aligned with the EnergyTag Standard.

• Incorporates detailed long-run marginal emissions rate (LR-MER) data from reputable providers such as REsurety, WattTime, and ClimateTRACE, enabling accurate carbon impact assessments.

• It offers an independent, transparent, and replicable global infrastructure suitable for adoption across diverse markets and regulatory environments.

By aligning with the emerging GHGP guidelines, Clean Incentive empowers organizations worldwide to transparently and credibly report their emissions reductions, ultimately supporting substantial investments in clean energy.

Why This Matters

The revision to GHGP’s Scope 2 Guidance has far-reaching implications. Corporations, governments, investors, and NGOs globally recognize these updates will drive investment decisions worth billions in renewable infrastructure. A globally scalable solution, like Clean Incentive’s Granular Registry and Marketplace, is essential to ensure consistent, transparent, and credible reporting standards, reinforcing trust and promoting continued investment in renewable energy.

Clean Incentive remains committed to providing innovative tools and platforms to meet evolving global sustainability standards, bridging the divide between hourly matching and impact-based accounting, and supporting the sustainable transformation of global energy markets.