What's Happening?
The Greenhouse Gas (GHG) Protocol has proposed updates to its Scope 2 Guidance, which could significantly alter how companies report emissions from purchased electricity. The American Council on Renewable
Energy (ACORE) has expressed concerns that these changes might slow the expansion of clean energy in the U.S. The proposed revisions require renewable energy procurement to match electricity consumption on an hourly basis and within tighter geographic boundaries. While intended to improve precision in emissions reporting, ACORE warns that these requirements could undermine corporate demand for clean energy and hinder the growth of renewable energy projects.
Why It's Important?
The proposed changes to the GHG Protocol could have far-reaching implications for the U.S. clean energy sector. For the past decade, corporate demand has driven significant growth in renewable energy, accounting for over 40% of new solar and wind projects. The current market-based approach allows companies to support clean energy initiatives, even when their operations are powered by a shared grid. If the new requirements are implemented, they could discourage corporate participation in the voluntary clean energy market, reducing funding for new projects and slowing the transition to renewable energy sources.
What's Next?
As the public comment period for the GHG Protocol's proposed changes continues, ACORE and its members plan to submit feedback to ensure the final standards balance environmental integrity with market realities. Stakeholders are encouraged to participate in the consultation process to influence the outcome. The GHG Protocol has a history of setting credible climate accounting standards, and with thoughtful engagement, it can develop a framework that maintains transparency while supporting the clean energy transition. The outcome of this process will be crucial in determining the future trajectory of renewable energy deployment in the U.S.
