ISO and GHG Protocol weigh Scope 2 revisions focusing on hourly clean energy matching
The International Organization for Standardization (ISO) and the Greenhouse Gas Protocol (GHG Protocol) are pursuing the integration of their corporate carbon accounting standards, which includes a revision of Scope 2 criteria, with discussions focusing on more precise hourly matching and deliverability requirements for clean electricity.
Our take
How would proposed Scope 2 revisions shift clean energy procurement for Korean firms?
The proposed GHG Protocol Scope 2 revisions, if adopted, would shift the burden of clean energy matching from annual volume to hourly alignment and physical deliverability for Korean companies, potentially requiring new DER strategies like ESS or diverse clean energy sources to cover non-solar hours.
Currently, global carbon accounting standards like the GHG Protocol's Scope 2 allow companies to calculate indirect greenhouse gas emissions from electricity use based on annual renewable energy procurement, often through instruments like RECs or PPAs. This system primarily focuses on the total volume of clean energy acquired over a year, rather than the timing of its generation and consumption.
- Year for public consultation draft on Scope 2 revisions: 2025
- Planned joint public consultation for integrated corporate standard: Q2 2027
- Planned final publication of integrated joint corporate standard: Q4 2028
The proposed shift from annual to hourly matching and deliverability in Scope 2 criteria directly challenges the current volume-centric approach to clean energy procurement. This change would force companies to consider the intermittency of renewable sources like solar and wind, requiring them to either procure diverse clean energy sources (e.g., wind at night) or invest in energy storage systems (ESS) to ensure a consistent supply of matched clean electricity during all operating hours. While many stakeholders express opposition, the potential adoption of these criteria creates a new operational and financial challenge for companies aiming for carbon neutrality, demanding more sophisticated demand-side management and supply-side diversification.
What the source says
- The revised Scope 2 criteria propose 'hourly matching' to align corporate electricity consumption times with clean energy production times, and a 'deliverability' requirement to ensure clean power can actually be supplied to the consumption site.
- Shin Ho-jung Shin Ho-jung, Director of the National Clean Production Support Center at the Korea Institute of Industrial Technology, emphasized the need for proactive preparation by Korean industries and related infrastructure, despite the criteria not being finalized, due to the potential for these discussions to become global standards.
- ISO and GHG Protocol plan to conduct a joint public consultation on the integrated corporate standard draft in Q2 2027.
- ISO and GHG Protocol plan to publish the final integrated joint corporate standard in Q4 2028.
- If hourly matching and deliverability principles are reflected in the Scope 2 criteria, Korean companies would need to manage the alignment of electricity consumption times with renewable energy production times, moving beyond simply securing annual renewable energy volumes.
- The existing Scope 2 market-based method calculates emissions based on contractual instruments linked to electricity use, while the revision considers whether to maintain annual matching or more precisely link corporate power consumption time with clean power production time.
For investors — Investors in Korean DER should monitor the finalization of Scope 2 revisions as they could drive increased corporate demand for time-matched clean energy solutions, including ESS and diverse renewable generation assets, to meet stricter reporting requirements.
Watch: Publication of the joint public consultation draft for the integrated corporate standard by ISO and GHG Protocol in Q2 2027.
Weekly digest
What changed in Korea's power market this week — one email, every week.
Email only, used solely to send this digest (delivered via Resend). Unconfirmed sign-ups are deleted after 30 days. Free.