What renewable energy buyers should know about proposed Scope 2 accounting changes

The Greenhouse Gas Protocol is considering revisions to emissions accounting rules that could complicate the process of claiming reductions from corporate renewable energy contracts, especially for companies with smaller electricity loads or widely distributed operations, as indicated by individuals familiar with the discussions. The GHG Protocol, a nonprofit overseeing guidelines used by 97 percent of companies to calculate and report greenhouse gas emissions, is updating its rules after feedback received two years ago, including those related to Scope 2 emissions from energy purchases.

Many buyers of clean energy believe that updating the Scope 2 guidance, which was established in 2015, is necessary. However, concerns have been raised that implementing these changes could make it harder for corporate buyers to justify new deals. Trade groups such as the Clean Energy Buyers Association (CEBA) and the American Council on Renewable Energy (ACORE) have expressed worries about the potential strictness of the revisions.

The current Scope 2 rule allows companies to claim emissions reductions by purchasing renewable energy certificates from sources like solar and wind to match their annual electricity load. This has led to significant investments in clean energy in the U.S. since 2014. Proposed changes being considered include requiring more rigorous matching of electricity loads to renewable sources and narrowing market boundaries for purchases.

Buyers of corporate renewable energy suggest that future rules should be tiered and some elements optional to accommodate different types of buyers. GHG Protocol is expected to release a draft outlining changes to Scope 2 in late 2025, with revisions circulating in 2026 and a final draft anticipated in 2027.