Two Ways to Count Scope 2 — Location-Based vs Market-Based
Electricity is the largest emission category for most Thai organizations — and the only one standards require reporting two ways, which is exactly what lets clean-energy investment show up in the report.
Purchased electricity (Scope 2) is the largest emission category for most Thai organizations, yet many do not realize the GHG Protocol requires it to be reported two ways, side by side.
Location-based — the grid average
The first method multiplies electricity consumption by the national grid emission factor. It reflects the physical reality that the power entering your building comes from every plant on the grid.
Market-based — reflecting your energy contracts
The second method credits deliberate clean-energy purchasing. If the organization holds renewable energy certificates (REC / I-REC) or a PPA with a clean power producer, that portion can be counted at zero emissions — making clean-energy investment visible in the report.
What to watch
RECs must state vintage and origin, must be retired (not merely held), can never be double-counted, and location-based figures must always be reported alongside. Verifiers will ask for every certificate.
“An unretired REC is just paper — a certificate only counts once it is used”
In GCarbon
The system records REC / I-REC against reporting periods, computes both Scope 2 methods automatically, and keeps certificate evidence in one place for the verifier.
A checklist before buying RECs
Before purchasing renewable certificates, check four things: vintage should match or sit close to the reporting year · generation should be on the same grid where you consume · the registry must be credible with verifiable retirement · and volume should follow strategy — covering 100% in year one is not required. Scaling the share gradually alongside genuine consumption reduction reads as far more credible.
PPAs — the more durable alternative
A Power Purchase Agreement with a clean-power producer delivers the same market-based effect as RECs but commits long-term and creates real new capacity (additionality). Large organizations with factory roofs or install space should always compare a solar PPA's cost per kWh against annually repurchased RECs.
GCarbon Team
Carbon accounting specialists
