GHG Protocol Delays Tougher Scope 2 Rules After Corporate Pushback

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The move follows concerns from businesses about higher costs, complex reporting, and access to renewable energy. The proposed rules would require companies to match their clean electricity purchases more closely to when and where they use power. But many businesses oppose making these rules mandatory. They say the changes could make renewable energy projects harder to fund. In an October 2026 update, GHG Protocol outlined a possible plan that would let companies choose between the current reporting method and a stricter method for a set period. Companies would have to state which method they use. The deadline for switching to the stricter method has not yet been set, and the final rules are still being developed. The decision could affect thousands of companies that use GHG Protocol standards to measure and report their greenhouse gas emissions.

The debate comes as electricity demand grows, especially from data centers and artificial intelligence (AI). Why GHG Protocol Wants Stricter Scope 2 Reporting Scope 2 emissions come from the electricity, heat, steam, and cooling that a company buys or uses. For many businesses, electricity is a major source of these emissions. Under current GHG Protocol rules, companies can use a market-based method to report emissions from purchased electricity. This method lets them count contracts and certificates linked to renewable energy. However, the clean electricity they buy does not always match when or where they use power. Source: Shutterstock The proposed changes would tighten the rules in two main ways. Hourly matching would require companies to match their clean electricity purchases with their power use in the same hour.

This would give a clearer picture of whether clean power is available when a company needs it. Deliverability would require the renewable electricity a company buys to come from a market that can supply the grid where the company uses power. GHG Protocol has also considered incrementality. This looks at whether a company’s clean energy purchases help bring new renewable power projects online. The aim is to make company emissions reports better reflect the electricity systems that supply their power. Under current rules, a company could buy renewable energy certificates (RECs) from another region or match its power use with clean energy generation over a full year. This can happen even if the clean power was not available when the company needed electricity.

Companies Raised Strong Objections to the Proposed Rules GHG Protocol opened a public consultation on the proposed Scope 2 changes in October 2025. The consultation was extended and closed on January 31, 2026, giving people more time to share their views. GHG Protocol received nearly 1,100 responses from 56 countries. The results showed limited support among companies for the stricter rules. Only 12% of company respondents supported hourly matching, while 82% reported low or no support. For deliverability, 19% supported the proposal, while 71% reported low or no support. Companies raised concerns about the cost and difficulty of collecting electricity data for every hour. They also warned that stricter rules could limit their ability to buy renewable energy in markets where clean power projects could have a greater impact.

Among respondents who raised concerns about hourly matching, 87% said it could discourage companies from taking part in voluntary clean energy markets. Another 86% raised concerns about the cost and extra work required for reporting. For deliverability, 87% of those with concerns said stricter market limits could cut investment in strong renewable energy areas. Some also warned that the rules could discourage long-term renewable energy contracts and push companies toward shorter-term purchases. These figures reflect feedback from consultation respondents. They are not a vote that decides the final rules. GHG Protocol says it must weigh this feedback against factors such as the accuracy of emissions reporting, climate benefits, and how practical the rules would be to use. RELATED: One Carbon Rulebook?