emissions Mary Sotos, Associate at World Resources Institute - - PowerPoint PPT Presentation

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emissions Mary Sotos, Associate at World Resources Institute - - PowerPoint PPT Presentation

Oct 02, 2023 37 likes •291 views

Measuring and managing electricity emissions Mary Sotos, Associate at World Resources Institute www.ghgprotocol.org 60% 40% 50% Fortune 100 global electricity use have set clean emissions by business energy and GHG reduction targets

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www.ghgprotocol.org

Measuring and managing electricity emissions

Mary Sotos, Associate at World Resources Institute

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50%

electricity use by business

40%

global emissions

60%

Fortune 100 have set clean energy and GHG reduction targets

Measuring electricity emissions matters!

www.ghgprotocol.org

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Scopes Across the Value Chain – GHG Protocol

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Emissions across an electricity value chain

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Scope 2 = Activity x Emission Emissions Data Factor MWh mt CO2e/ MWh

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Grid vs. market? Double counting? CONCEPT How to compare? What counts? INSTRUMENTS Directly or indirectly reduce GHG emissions

  • ver time?

IMPACT

Key Questions for Scope 2 Methods

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New Accounting and Reporting Requirements

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For companies with operations only in markets without choice in electricity product or supplier

No change. Only one scope 2 total will be reported based on the location-based method.

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For companies with operations in markets with choice in electricity product or supplier:

  • 1. Dual reporting
  • 2. Scope 2 Quality Criteria
  • 3. Recommended additional disclosures
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Location-based method

(map not representative)

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Location-based method emission factor hierarchy

  • 1. Regional or sub-national emission factors
  • 2. National production emission factors
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Market-based method

(map not representative)

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Market-based method emission factor hierarchy

  • 1. Electricity attribute certificates or equivalent

instruments

  • 2. Contracts for electricity, such as PPAs
  • 3. Supplier/Utility emission rates
  • 4. Residual mix (sub-national or national)
  • 5. Other grid-average emission factors (sub-national
  • r national) see location-based data
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Residual Mix

(map not representative)

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Country Location- Based Total (mtCO2e) Market- Based Total (mtCO2e) Instrument Types USA 650 RECs to cover 100% of consumption Norway 100 500 Residual mix China 800 800 N/A India 850 400 Collaborative solar PPA to cover 50% consumption Mexico 400 PPA to cover 100% of consumption TOTAL 2,800 mtCO2e 1,750 mtCO2e

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Contractual instruments shall:

  • 1. Convey GHG information
  • 2. Be an exclusive claim
  • 3. Be retired
  • 4. Match up to inventory period
  • 5. Be sourced from same market as company

Utility emission factors shall be:

  • 6. Calculated based on delivered electricity

Direct purchases shall:

  • 7. Convey GHG claims to the purchaser

Using any instruments requires:

  • 8. Adjusted residual mix, or disclose its absence

Scope 2 Quality Criteria

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Policy Neutrality

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Concerns with market-based method instruments

Concept of market-based accounting? Execution of market mechanics? Impact of markets and instruments?

Dual reporting Scope 2 Quality Criteria Additional reporting recommendations

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  • Instrument labels
  • Power plant features

– resource type, facility location, facility age

  • Policy context

– Supplier quotas like RPS? – Cap and trade? – Funding/subsidy receipt? – Offsets?

Additional recommended disclosures

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  • 1. Contract directly with new low-carbon energy projects
  • 2. Work with electricity suppliers for new projects
  • 3. Establish “eligibility criteria” for corporate procurement
  • 4. Provide incremental funding or donations

Jurisdictional policy Certification schemes Utility/ supplier labels Corporate policy and decisions

Choices by all players in the market can have an impact

Companies can:

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  • Download the publication, Executive Summary, other

materials at: http://www.ghgprotocol.org/scope_2_guidance

  • Other learning opportunities:

– CDP workshop May 29th (New York) – EDF Talk Power conference June 17th (London) – GHG Protocol webinar trainings: New Guidance fully integrated into quarterly GHG Protocol Corporate Standard webinar trainings (next in July): http://ghgprotocol.org/January-2015-Webinar-Training_GHG- Protocol-Corporate-Standard

  • Contact us:
  • Mary Sotos – mary.sotos@wri.org