Companies push back on stricter Scope 2 rules and the GHG Protocol is listening

When the GHG Protocol asked businesses whether they would support matching renewable power contracts to consumption on an hour-by-hour basis, the answer was a resounding no.

Only 12% of respondents backed mandatory hourly matching, while just 19% supported requiring energy certificates to originate from the exact local grid where power is consumed. The clearest signal came down to language: 84% insisted on "may" rather than "shall".

This corporate pushback extends well beyond compliance costs. A striking 87% of respondents warned that strict local deliverability rules would stifle decarbonisation investments outside a company’s primary operating grid, while 72% cautioned that rigid requirements could drive buyers away from long-term Power Purchase Agreements (PPAs) towards spot-market transactions.

That PPA distinction is critical. Long-term contracts provide the financial backing needed to construct new wind and solar farms; spot purchases simply trade clean energy that already exists on the grid.

Conversely, advocates for stricter standards raised a compelling counterpoint: without tight temporal and spatial matching, companies can claim credit for clean electricity they never physically consumed — the very definition of greenwashing.

Drawing 1,072 responses across 56 countries from corporations, NGOs, academia and public bodies, the consultation ended without a consensus. In response, the GHG Protocol’s governance bodies are pivoting. Rather than enforcing a single mandatory approach, they are revising draft guidelines to explore multiple reporting pathways.

Towards a unified global carbon standard

While the Scope 2 debate unfolds, the GHG Protocol and the International Organization for Standardization (ISO) have settled a broader structural question: whose rulebook takes precedence? The answer is both.

The two organisations confirmed plans to merge their corporate carbon accounting frameworks into a single, co-branded global standard. This landmark unification will combine the GHG Protocol’s Scope 1, 2 and 3 standards (along with its Actions and Market Instruments workstream) with ISO 14064-1.

The primary objective is to eliminate fragmented frameworks, giving investors and regulators consistent numbers when evaluating companies globally.

Key timeline to watch:
•    Q2 2027: Joint public consultation opens.
•    Q4 2028: Final consolidated global standard takes effect.

For sustainability teams shaping their Scope 2 strategy, the key takeaway is strategic patience. Existing rules remain in place for now, but the trajectory is set: today's battles over Scope 2 flexibility will directly shape the global standard every company follows from 2028 onward.