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Mary Sotos University of Edinburgh Business School and ACP May 15, 2014

Scope 2 Guidance: new developments in corporate GHG accounting for energy purchases and consumption. Mary Sotos University of Edinburgh Business School and ACP May 15, 2014. Scopes Across the Value Chain – GHG Protocol. www.ghgprotocol.org. G. G. G. C. C. C. OFFSET:

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Mary Sotos University of Edinburgh Business School and ACP May 15, 2014

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  1. Scope 2 Guidance: new developments in corporate GHG accounting for energy purchases and consumption Mary Sotos University of Edinburgh Business School and ACP May 15, 2014

  2. Scopes Across the Value Chain – GHG Protocol www.ghgprotocol.org

  3. G G G C C C

  4. OFFSET: Tons of avoided CO2e from other power plants backing down/not being built Power plant (owned by utility company) Contractual instruments in scope 2: Emission attributes from renewable energy generation. Your factory

  5. Concerns with market-based method instruments • Instrument and market impact • Execution Concept

  6. For companies with operations 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.

  7. For companies with operations in markets with choice in electricity product or supplier : Paradigm shift! Changes in: Dual reporting Quality Criteria Disclosure

  8. Communications summary Location-based: These are the emissions from the energy mix on the grids where we operate. The electricity grid is physically bound, and our consumption is linked to those local grids. Market-based: Where we have options in terms of energy product or supplier, these are the emissions associated with our procurement choices in the market.

  9. How to “make a difference” with energy procurement? • This Guidance’s reporting requirements • Enacting eligibility changes throughout the supply chain • Emphasizing new corporate-driven energy projects

  10. Corporate policy and decisions What types of power and power products are procured? Utility/ supplier labels What types of power or certificates are obtained for customers? Eligibility Decisions Made By All Stakeholders in the Electricity Sector Certification schemes What type of energy projects are eligible for a program’s certification scheme? Jurisdictional policy What kinds of procurement are even possible in this market? What certification programs?

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