Scope 2 reporting guide

Location-based vs market-based emissions: how Scope 2 reporting methods differ.

Location-based and market-based emissions are two Scope 2 reporting methods for purchased electricity. GreenPowerHub fits where market-based reporting questions turn into renewable electricity certificate coverage, sourcing, RFQ, and documentation workflows.

60+ countries supported across certificate markets.

Scope 2 methods From reporting method to certificate sourcing criteria
Location-based Average grid emissions factors for consumed electricity
Market-based Contractual instruments and supplier-specific information where suitable
GPH fit Certificate markets, EAC sourcing, RFQs, and trade documentation

Choose your next step

Which Scope 2 question are you trying to answer?

Use this page to separate the reporting concept from the procurement workflow that may follow.

Reporting context

Understand the Scope 2 boundary

Use the Scope 2 guide when the question is about purchased electricity, reporting boundaries, and certificate sourcing requirements.

Open Scope 2 guide
Certificate instruments

Learn what EACs are

Use the EAC guide when the question is about certificate systems, attributes, and market terminology.

Open EAC guide
Buying workflow

Move into certificate sourcing

Use the buying page when you know the country, volume, and certificate criteria that need supplier quotes or available purchase options.

Compare buying paths

Public GreenPowerHub metrics

Used by buyers, sustainability teams, traders, utilities, and service providers working across renewable certificate markets.

60+ Countries supported across certificate markets
700+ Companies registered
100+ TWh Energy certificates traded

Method difference

Location-based and market-based reporting answer different Scope 2 questions.

Location-based reporting reflects the average emissions intensity of the grids where electricity consumption occurs. It helps companies understand the grid mix associated with their operational footprint.

Market-based reporting reflects contractual instruments and supplier-specific information where those instruments meet the relevant guidance. Renewable electricity certificates are one possible contractual instrument in many markets.

GreenPowerHub should be used when the market-based discussion becomes a sourcing question: which country, which certificate system, which volume, which vintage, and which documentation route.

Questions before sourcing

  • Which facilities and countries are in the Scope 2 boundary
  • Whether both location-based and market-based results are needed
  • Which certificate systems are available for each country
  • Consumption year, production year, and vintage expectations
  • Contractual instrument quality and documentation needs
  • Internal review of claims before public disclosure

GreenPowerHub workflow

Connect market-based Scope 2 questions to sourcing criteria.

The reporting method is only the start. Procurement teams still need market coverage, certificate criteria, comparable supplier responses, and documentation.

  1. 1 Define the footprint

    Identify the countries, facilities, and electricity consumption that sit inside the relevant reporting boundary.

  2. 2 Check market fit

    Review available certificate systems and whether the market can support the intended sourcing route.

  3. 3 Structure the request

    Turn country, volume, year, technology, delivery, and documentation needs into comparable supplier criteria.

  4. 4 Review claims separately

    Keep final accounting, disclosure, and assurance decisions separate from the certificate sourcing workflow.

Related pages

Keep reporting context and certificate sourcing connected.

Use these pages when the Scope 2 discussion moves from method definitions into certificate markets and buyer workflows.

Scope 2

Scope 2 emissions

Use this for the broader purchased electricity and renewable sourcing workflow.

Open Scope 2 guide
International

I-REC Scope 2 reporting

Use this when I-REC markets are relevant to market-based Scope 2 questions.

Open I-REC Scope 2
EACs

Energy attribute certificates

Use this for certificate terminology, market systems, and attributes.

Open EAC guide
Buying

Buy energy attribute certificates

Use this when certificate criteria are ready for a buying workflow.

Compare buying paths

Careful positioning

EAC sourcing can support market-based reporting, but sourcing is not accounting.

Renewable electricity certificates can support market-based Scope 2 reporting when the certificate attributes, geography, timing, claim, and documentation fit the relevant guidance.

GreenPowerHub helps with the certificate market side of the work: coverage, RFQ, marketplace context, supplier engagement, and trade documentation. It does not replace carbon accounting, assurance, or final disclosure review.

Public copy should avoid saying that any certificate automatically reduces emissions or fits every reporting claim.

FAQ

Location-based and market-based emissions questions

Method basics

What is the difference between location-based and market-based emissions?

Location-based emissions use average grid emissions factors for consumed electricity. Market-based emissions reflect contractual instruments and supplier-specific information where they meet the relevant guidance.

Are location-based and market-based emissions both Scope 2?

Yes. They are both Scope 2 reporting methods for purchased electricity and other purchased energy, but they answer different questions about the electricity footprint and contractual instruments.

Certificate sourcing

Where do energy attribute certificates fit?

Energy attribute certificates can be market-based contractual instruments when their attributes, geography, timing, claim, and documentation fit the relevant reporting guidance.

Can GreenPowerHub calculate my Scope 2 emissions?

No. GreenPowerHub is positioned around renewable electricity certificate sourcing workflows, not carbon accounting software. It helps teams move from certificate criteria to market coverage, RFQ, Marketplace, and trade documentation.

Official sources

References for standards, reporting, and market context.

Next step

Turn market-based Scope 2 needs into certificate criteria.

When the reporting boundary is clear, use certificate market coverage and GreenPowerHub buying paths to move from method questions into practical renewable electricity sourcing.