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What does “Scope 2 market-based” mean?

The GHG Protocol identifies two methods for Scope 2 emissions accounting:

  • Location-based method: Reflects the average emissions intensity of the national electricity grids where energy consumption occurs.
  • Market-based method: Considers emissions based on the electricity purchased by companies, using emission factors provided by energy suppliers and energy contracts.

To calculate the market-based value, you’ll need:

  1. The energy consumed by your office or facility.
  2. The emission factors from your energy supplier. These can typically be found on your electricity bill or the energy provider’s website.

If you can’t access a supplier-specific emission factor, the GHG Protocol allows alternatives:

  • Use the national residual grid average emission factor.
  • Or, use the grid country average emission factor, which means the location-based and market-based values will be the same

Refer to Table 6.3 in the GHG Protocol Scope 2 Guidance for more details.