The Science Based Targets initiative (SBTi) has launched a global public consultation to clarify Scope 2 electricity accounting guidelines within its updated Corporate Net Zero Standard, addressing corporate uncertainty ahead of the standard’s formal implementation on 1 February 2027.
The 30-day public consultation window opened following an announcement outlining targeted interpretations for Scope 2 emissions reporting. Scope 2 requirements represented the second most questioned topic by stakeholders following the finalisation of Version 2 of the Corporate Net Zero Standard in June. SBTi stated that the newly issued clarifications address approximately 40 per cent of stakeholder queries.
The interim revisions apply globally to all corporate entities purchasing electricity and using market instruments to claim low-carbon power. The move is designed to maintain operational interoperability with the Greenhouse Gas Protocol (GHG Protocol), which is conducting its own separate Scope 2 accounting revisions expected for public consultation in the second quarter of 2027.
Key technical, regulatory, and market provisions detailed in the clarification package include:
- Grandfathering provisions: Protects existing commercial contracts signed prior to the 1 February 2027 effective date, allowing pre-existing low-carbon electricity purchases to remain compliant under the updated standard.
- Deliverability region boundaries: Establishes a preliminary list of geographically defined “deliverability regions”—synchronous grid zones where generation can serve connected consumption—addressing previous ambiguities that left regional boundaries to corporate interpretation.
- Load aggregation flexibility: Adjusts load aggregation rules for long-term contracts to accommodate broader geographic boundaries, specifically addressing US market structures and expanding eligible financing instruments beyond standard power purchase agreements (PPAs) to include tax credit transfer agreements.
- GHG protocol alignment: Serves as interim guidance supporting the GHG Protocol’s direction of travel on geographic matching without pre-empting its forthcoming formal standard updates.
SBTi noted that the interim interpretations are intended to resolve unintended operational consequences and support current corporate procurement practices while facilitating a structured transition toward stricter geographic and temporal matching.
The standard-setter emphasized that the revisions support its broader strategic pivot toward becoming a corporate transformation partner, focusing on reducing market fragmentation and streamlining reporting burdens across global sustainability frameworks.
