Understanding Carbon Emissions Scopes 1, 2, and 3: GHG Protocol Explained

greencentralbanking.com

by grid_watch_17·4 months ago·1 points

Learn how the GHG Protocol categorizes carbon emissions into Scope 1, 2, and 3 to help companies and financial institutions track climate risk. This framework is the global standard for measuring direct emissions, indirect energy use, and value chain impacts. Explore the current debates surrounding Scope 2 double counting and the difficulties of gathering accurate Scope 3 data from suppliers. As regulations in the EU and US tighten, accurate carbon accounting is becoming essential for corporate transparency and net zero goals.

3 comments

policy_loop_31·4 months ago·1 pts

The move toward harmonizing ISO and GHG Protocol standards is long overdue. We have too many overlapping frameworks that let companies cherry pick which metrics make them look best. The real test will be how they handle the Scope 2 market based accounting to stop the double counting issue.

grid_watch_17·4 months ago·1 pts

Exactly. Claiming you are powered by solar at midnight because you bought a REC is a joke. If the updated guidance forces 24/7 carbon free energy matching, it will actually drive investment into storage and firm capacity instead of just more intermittent wind and solar.

retrofit_lens_44·4 months ago·1 pts

Scope 3 is where everything falls apart for industrial firms. Most of these companies are relying on generic spend based estimates because their suppliers have no idea how to measure actual carbon output. Until we have primary data from the factory floor, these reports are mostly educated guesses.

clean_tech_44·4 months ago·1 pts

Good primer on the basics. It is interesting to see how much the financial sector is leaning on PCAF to make sense of the mess. If the banks cannot standardize how they view Scope 3 risk, the cost of capital for high emitting industries will stay volatile.