At a glance
- Companies have until Dec. 5 to comment on rules that take effect Feb. 1, 2027.
- The 20-page proposal adds text on how companies should interpret and define grid deliverability regions and clarifies how older power purchase agreements will be recognized.
- For allocators underwriting transition funds, or holding green bonds whose terms reference Scope 2 figures, a PPA that no longer qualifies stops backing the reduction a company reports.
SBTi opened a 30-day comment period on Nov. 5 on proposed changes to the electricity criteria in its Corporate Net-Zero Standard 2.0. Companies have until Dec. 5 to comment on rules that take effect Feb. 1, 2027.
The 20-page proposal adds text on how companies should interpret and define grid deliverability regions and clarifies how older power purchase agreements will be recognized. Electricity supply sits in Scope 2 of the GHG Protocol's corporate accounting rules, and the SBTi revision substantially rewrites that section, Trellis reported.
For allocators underwriting transition funds, or holding green bonds whose terms reference Scope 2 figures, a PPA that no longer qualifies stops backing the reduction a company reports. The proposed language on older PPAs will set whether a contract signed years ago still counts toward a portfolio company's Scope 2 target after Feb. 1, 2027. Deliverability regions do related work at grid level, setting which generation a company can count toward its target.
Interim guidance while GHG Protocol rewrites Scope 2
The comment window uses a feedback mechanism SBTi created in late October. The procedure places more emphasis on public comment and allows shorter periods than formal consultations when scope is limited, SBTi said.
SBTi plans to analyze responses in December. The technical council retains final oversight, so the wording could change. SBTi said the clarifications are meant to give companies interim clarity as they set targets under the revised standard in 2027, ahead of the GHG Protocol's own revision of the purchased-electricity rules.
The GHG Protocol said in mid-October it would consider an adjusted approach to Scope 2 after comments it received over the summer, input from a Scope 2 technical working group and an Oct. 6 meeting of its independent standards board. Scope 2 generated the second-highest number of comments in the formal consultation on the net-zero standard, SBTi said.
As ESG Capital Daily previously reported, the GHG Protocol said in late October it would delay a stricter Scope 2 rule after 82% of respondents reported low support. Only 12% of companies backed hourly matching and 19% backed the deliverability test, the consultation found.
SBTi plans to publish any changes in January with a summary of the actions taken.
Stricter Scope 2 tests drew little backing
Share of consultation respondents reporting each view on stricter Scope 2 rules, by survey question
Select a bar for its numbers.
82%
Reported low support
19%
Backed deliverability test
12%
Backed hourly matching
Show as table
| Item | Share | Count | Of |
|---|---|---|---|
| Reported low support | 82% | ||
| Backed deliverability test | 19% | ||
| Backed hourly matching | 12% |
Reported by the Policy & Disclosure desk from Trellis (GreenBiz) and ESG Capital Daily archive. Published . Corrections