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Why isn't my market adjustment zeroing out my electricity emissions?

Making market adjustments with RECs or other energy attribute certificates in Scope 2 or Scope 3.1

Updated over 2 weeks ago

Though you may have market adjusted 100% of your company electricity consumption, there are still emissions associated with renewable energy generation that are being accounted for in your market based emissions total.

In the BEE, we apply US EPA emissions factors for renewables (wind solar, hydro, etc) depending on your selected generation source of your market adjustments and apply those emissions factors to your reported kWh of renewable energy purchased via Energy Attribute Certificates (like RECs, GOs, etc). The emissions factors for renewables are near zero so you'll see that the emissions calculated for your renewable energy purchases are also near zero per facility. Near zero values compounded across many facilities can still add up to notable emissions in your market based footprint.

According to e-grid emissions factors, there are direct emissions associated with renewable energy at the point of generation, these direct emissions are variable depending on the subregion in the US. In lieu of zeroing out the emissions for market adjustments made in the BEE workbook, we are applying EPA e-grid emissions factors to the quantity of purchased renewable energy reported in your market adjustment. All upstream T&D losses are counted in Scope 3.3 in the BEE, regardless of the electricity generation source.
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Prior to 2025, the BEE was not enabled with dual market and location based measurement so market adjusted totals were not calculated separately from the location based total. Additionally, in late 2024 we updated our electricity emissions factors to a new data set so we are not simply treating renewable energy consumption as zero emissions.
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Our methodology provides more details on how we are calculating and assigning emissions associated with electricity. The section Calculations | Underlying Data + Emission Factors section 2 explains the calculations applied to renewable energy.
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Lastly, the market based adjustment fields in the workbook include the option to make an adjustment in tCO2e. This can be used to fully adjust your market based emissions to zero. However this requires that you're able to confirm that the emissions rate for each of your EAC purchases is in fact zero as specified by the supplier of the EAC.
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