I recently presented at the 7th Product Carbon Footprint (PCF) World Forum Summit, a gathering of experts brought together by Berlin-based think tank Thema1 “to foster and facilitate international discussion on how to assess, reduce, and communicate the impact of goods and services on the climate.” This group historically has focused on the life cycle of greenhouse gas (GHG) emissions and product-level emission inventories. But this year’s theme included an additional focus: whether and how renewable energy purchases should be reflected in corporate GHG emissions calculations.
Renewable energy sources like wind and solar have no GHG emissions associated with generation and thus play a vital role in reducing overall emissions from electricity use. Many companies seek to purchase this energy and use the zero-emissions rate in calculating their indirect emissions from electricity consumption (also known as scope 2 emissions). However, several uncertainties surround how this practice should be used in GHG accounting—or whether it should be permitted at all.