More than 60 major global corporations, including Apple, Amazon, General Motors, and BYD, have launched a formal pushback against proposed changes to international emissions reporting standards, warning that stricter rules could stifle investment in the clean energy transition.
In a joint statement submitted to the Greenhouse Gas Protocol, the firms requested that proposed revisions to “Scope 2” emissions reporting—which covers electricity use—remain optional rather than mandatory. The Protocol, the global authority on carbon accounting, is considering a shift from annual “matching” of renewable energy to a far more granular hourly and location-based system.
Under current rules, a company can claim 100% renewable energy use by purchasing certificates (RECs) to match its total annual consumption. The proposed changes would require companies to prove that the clean energy was generated at the exact hour and on the same regional grid as their consumption.
“We have concerns about the feasibility of implementing the proposed hourly and location matching requirements,” said Mel Shank, senior environmental impact program manager at Patagonia. “We believe that if the proposal goes forward, it will have a chilling effect on investment in renewable energy.”
A debate over accuracy vs feasibility
Proponents of the update argue that the current decade-old guidelines allow for “greenwashing” by letting companies claim carbon reductions that are physically impossible.
“The status quo allows companies to claim to have used electricity that is physically impossible they did actually use,” said Matthew Brander, a researcher at the University of Edinburgh and former member of the Protocol’s technical working group.
However, the corporate coalition—which also includes FedEx and Patagonia—argues that the administrative burden and technical complexity of hourly tracking could deter companies from signing the large-scale power purchase agreements (PPAs) that fund new wind and solar farms.
Regional and small business impact
Experts at the Renewable Energy Markets Asia conference in Singapore this week warned that the burden would fall hardest on smaller firms. Henry Richardson, a senior analyst for WattTime, noted that at a time when some companies are already retreating from climate goals due to economic headwinds, the new rules might “accelerate that trend away from increased investment in climate solutions.”
Michael Gillenwater, executive director of the Greenhouse Gas Management Institute, suggested that while annual matching is imperfect, it remains unclear if the proposed changes would actually benefit the environment. “It’s not clear that this is going to help anything from the environmental standpoint,” he noted.
A spokesperson for the Greenhouse Gas Protocol confirmed the group is evaluating the thousands of comments received and aims to ensure the final update reflects “both technical rigour and practical feasibility.” A summary of the feedback is expected in the coming months, with new rules potentially taking effect as early as 2027.
