For several years, well-intentioned companies seeking to reduce their emissions from electricity consumption – a primary component of their Scope 2 emissions – have bought Renewable Energy Credits (RECs) or signed Power Purchase Agreements (PPAs). Known as energy or megawatt hour matching, this approach, which forms the backbone of the Greenhouse Gas Protocol’s Scope 2 Market-Based Method accounting system, does not distinguish the time, location or emissions profile of a company’s electricity consumption from that of its REC and PPA interventions to offset this consumption.

But as different grids have decarbonized at different rates over the years, the emissions impact of a REC purchased or PPA signed in one location at a particular time no longer necessarily has a similar impact to RECs purchased or PPAs signed in different locations covering different periods of time. In essence, at least as it pertains to carbon impact, not every megawatt hour is created equal. 

In this episode, recorded at the GreenFin 23 Conference in Boston, Chad leads a panel of industry experts – including Katherine Collins of Putnam Investments; Hank He of Tabors Caramanis Rudkevich; Lee Taylor of REsurety; and Rob Threlkeld of General Motors – on the deficiencies of energy matching, the benefits of a new approach known as carbon matching and the resulting implications for ongoing efforts to reform Scope 2 of the Greenhouse Gas Protocol. 

Links: 

• Tabors Caramanis Rudkevich White Paper: A Comparison of Strategies for Tackling Corporate Scope 2 Carbon Emissions
• REsurety White Paper: Emissions Implications for Clean Hydrogen Accounting Methods
• General Motors 2022 Sustainability Report

Episode recorded June 26, 2023

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Email your feedback to Chad, Gil, Hilary, and Guy at [email protected].