Does switching to a green tariff make my Scope 2 emissions zero?

Under the market-based method, a REGO-backed green tariff reduces your Scope 2 to zero or near-zero. Under the location-based method, your emissions still reflect the grid average. Best practice is to report both figures. The SBTi requires the market-based method for target-setting but expects both to be disclosed.

What is the difference between a green tariff and a PPA?

A green tariff is a standard electricity supply contract backed by REGOs, typically from unspecified renewable sources. A PPA is a direct agreement with a specific renewable generator, often offering a fixed price over a longer term (10–15 years) and a stronger claim to additionality.

Renewable Energy

Renewable energy is energy generated from naturally replenishing sources such as wind, solar, hydro, biomass, and geothermal, producing little or no direct greenhouse gas emissions.

What is Renewable Energy?

Switching to renewable energy is one of the most impactful steps an organisation can take to reduce its Scope 2 emissions. In the UK, renewable electricity can be procured through green tariffs, Power Purchase Agreements (PPAs), on-site generation (solar PV, wind), or by purchasing Renewable Energy Guarantees of Origin (REGOs).

The GHG Protocol’s market-based method allows companies to claim zero or reduced emissions for purchased renewable electricity, provided they hold the corresponding energy attribute certificates (REGOs in the UK, GOs in Europe). Under the location-based method, the average grid emission factor is used regardless of the energy contract, meaning both methods should be reported for transparency.

As the UK grid continues to decarbonise (renewables provided over 40% of UK electricity generation in 2023), the carbon intensity of grid electricity falls. However, corporate renewable energy procurement remains important for accelerating the transition and demonstrating leadership.

Practical Examples

A technology company switches to a 100% REGO-backed renewable electricity tariff, reducing its market-based Scope 2 emissions to zero while its location-based figure reflects the UK grid average.

A manufacturer installs 500 kW of rooftop solar PV on its factory, generating 15% of its electricity needs on-site and reducing grid electricity purchases.

A property company enters into a 10-year corporate PPA with an offshore wind farm, securing a fixed electricity price and guaranteed renewable supply.

How Climatise Helps

Climatise calculates both location-based and market-based Scope 2 emissions, correctly accounting for renewable energy procurement through green tariffs, REGOs, and on-site generation. The platform shows the impact of switching to renewables on your overall carbon footprint.

Book a Demo

Related Terms

Frequently Asked Questions

Need help understanding your carbon data?

Climatise turns complex emissions data into clear, useful reports. Book a call and we'll walk you through it.

Book a Demo