Scope 2 Market-Based Emissions Calculator

Calculate Scope 2 purchased electricity emissions using both location-based and market-based methodologies. NetNada tracks renewable energy certificates (RECs), Power Purchase Agreements (PPAs), and green tariffs to accurately reflect your organisation's renewable energy procurement—essential for companies making credible renewable energy claims and science-based target tracking.

How It Works

GHG Protocol requires dual reporting: location-based (grid average) and market-based (contractual instruments). Market-based methodology credits organisations for purchasing renewable energy through RECs, PPAs, or green tariffs.

1

Input Electricity Consumption Data

Upload electricity bills showing kWh consumed per site and billing period. NetNada accepts manual entry, CSV uploads, or automated feeds from energy management systems and utility portals. Supports interval data (15-30 min) or monthly totals.

2

Calculate Location-Based Emissions

NetNada applies grid emission factors based on your electricity supply region: NEM states (NSW, VIC, QLD, SA, TAS), WA SWIS, NT, or international grids. Location-based represents physical grid emissions regardless of contractual arrangements.

3

Register Renewable Energy Instruments

Upload renewable energy certificates (RECs/LGCs in Australia, REGOs in UK, RECs in US), Power Purchase Agreements (PPAs), or green tariff contracts. NetNada validates certificate vintage, geography, and retirement status against registry databases.

4

Match Certificates to Consumption

Assign renewable certificates to specific sites and time periods. NetNada ensures certificates match consumption timing (annual vintage requirements), geography (same market rules), and quantity (MWh certificates = MWh consumption). Flags mismatches automatically.

5

Calculate Market-Based Emissions

Electricity covered by valid renewable instruments receives zero emission factor (or supplier-specific factor if disclosed). Residual consumption uses residual mix factors (grid average minus renewable sales). Market-based emissions = (Uncovered kWh × residual factor).

Why Use Market-Based Calculator

Claim Credit for Renewable Energy Procurement

When you purchase RECs, sign PPAs, or choose green tariffs, market-based methodology allows claiming emissions reductions. Location-based ignores contractual instruments—market-based recognises your renewable investment. Essential for companies publicly committing to renewable energy.

Meet GHG Protocol Dual Reporting Requirement

GHG Protocol Scope 2 Guidance (2015) mandates reporting both location-based and market-based. Investors, CDP, SBTi, and Climate Active all require dual reporting. NetNada calculates both automatically, ensuring compliance with reporting frameworks expecting market-based disclosure.

Track Science-Based Target Progress Accurately

Science-Based Targets initiative (SBTi) allows market-based for Scope 2 target tracking. If your decarbonisation strategy includes renewable PPAs or REC purchases, market-based accurately reflects progress. Location-based would show no improvement despite renewable procurement investment.

Support Credible Renewable Energy Claims

Marketing claims like "100% renewable electricity" or "powered by wind energy" require market-based accounting with matching renewable certificates. NetNada provides audit documentation (certificate registries, retirement evidence) substantiating public renewable energy claims and avoiding greenwashing allegations.

Optimise Renewable Procurement Strategy

Compare emissions impact of different procurement options: bundled PPAs (electricity + certificates), unbundled RECs (certificates only), green tariffs, or on-site generation. NetNada models scenarios showing cost per tonne CO₂e avoided for each strategy.

Demonstrate Leadership to Stakeholders

Investors, customers, and employees increasingly expect renewable energy leadership. Market-based methodology with transparent certificate tracking demonstrates commitment beyond grid-average performance. Differentiate from competitors making unsubstantiated renewable claims.

Who Needs Market-Based Calculator

Companies with Renewable Energy Commitments

Organisations publicly committed to 100% renewable electricity (RE100, Climate Pledge) require market-based accounting to demonstrate progress. Location-based shows grid mix regardless of procurement; market-based credits renewable purchases enabling credible target tracking.

Businesses Purchasing RECs or Green Tariffs

If you pay premium for green electricity tariffs or purchase renewable energy certificates separately, market-based methodology ensures you receive emissions credit for these investments. Without market-based tracking, your renewable spend provides no reported emissions benefit.

Organisations with Power Purchase Agreements

Companies signing corporate PPAs (purchasing electricity directly from renewable generators) use market-based to claim zero-emission electricity. NetNada tracks PPA MWh delivery, applies appropriate emission factors, and maintains documentation for auditors and stakeholders.

SBTi-Validated Companies Tracking Targets

Science-Based Targets initiative allows market-based for Scope 2 target tracking. Companies with SBTi-approved targets using renewable procurement as decarbonisation strategy require accurate market-based calculation and reporting to demonstrate annual progress.

Multi-Site Organisations Managing Portfolio

Companies with facilities across multiple electricity grids benefit from site-specific market-based tracking. Allocate renewable certificates optimally: cover high-emission grids first, compare site-level location vs market-based, and demonstrate renewable strategy effectiveness.

Market-Based Calculator Features

Dual Methodology Calculation (Location + Market)

Automatically calculate both location-based (grid average regardless of contracts) and market-based (reflecting contractual instruments) for all sites. Side-by-side comparison shows emissions reduction achieved through renewable procurement. Fully compliant with GHG Protocol Scope 2 Guidance (2015).

Renewable Certificate Registry Integration

Validate renewable energy certificates against official registries: Australia (REC Registry), UK (Ofgem REGO), US (M-RETS, PJM-GATS), Europe (AIB EECS). Automatic verification of certificate vintage, retirement status, and eligibility. Flags expired or already-retired certificates.

PPA Tracking and Documentation

Manage Power Purchase Agreements with delivery tracking, MWh reconciliation, and contract term management. Upload PPA contracts, track monthly generation and delivery, apply generator-specific emission factors (typically zero for wind/solar), maintain audit trail of PPA emissions claims.

Green Tariff Management

Track supplier-specific green electricity tariffs with certificate bundling verification. NetNada requests supplier emission factor disclosure and renewable certificate retirement evidence. Ensures green tariff claims are substantiated by actual certificate retirement (avoiding double-counting).

Residual Mix Emission Factors

Apply correct residual mix factors (grid emissions minus renewable sales) to electricity not covered by contractual instruments. Prevents double-counting renewable generation. Sources residual mix data from regional authorities: Australia (grid average used as proxy), Europe (AIB residual mix), US (Green-e residual mix).

Geographic and Temporal Matching Rules

Enforce GHG Protocol matching requirements: certificates must match consumption geography (same market), timing (annual or better), and quantity (MWh). NetNada flags violations: certificates from wrong country/grid, wrong vintage year, insufficient volume. Prevents invalid renewable claims.

Certificate Inventory Management

Track renewable certificate purchases, retirements, and allocations across accounting periods. Visualise certificate inventory over time, identify surplus or shortfall before period-end, optimise purchase timing, and ensure all claimed certificates are properly retired and documented.

Audit Documentation Package

Generate complete audit evidence for market-based claims: certificate registry screenshots, retirement confirmations, PPA contracts and delivery statements, supplier correspondence for green tariffs, calculation methodology documentation. Satisfies limited or reasonable assurance auditor requirements.

Real Results from Real Users

See how companies are transforming their sustainability reporting

Technology Company
Sustainability Director, Sustainability Director
"We purchased $120K in renewable energy certificates but our location-based Scope 2 stayed the same—stakeholders questioned whether RECs were greenwashing. Market-based methodology showed 1,200 tCO₂e reduction from RECs, demonstrating tangible impact. NetNada provided audit documentation substantiating our renewable energy claims."
Impact:
  • Demonstrated 1,200 tCO₂e reduction from REC purchases in market-based Scope 2
  • Provided investor relations team with credible renewable energy story
  • Avoided greenwashing allegations with proper certificate documentation
Manufacturing Facility
Environmental Manager, Environmental Manager
"We signed a 10-year PPA for 80% of our electricity. Before NetNada, we struggled to track PPA delivery vs consumption and apply correct emission factors. Market-based calculator automatically reconciles PPA MWh monthly, applies zero emission factor, and maintains audit trail. Cut Scope 2 emissions 75% through credible market-based accounting."
Impact:
  • Reduced reported Scope 2 emissions by 75% through PPA market-based credit
  • Automated PPA MWh reconciliation saving 8 hours monthly
  • Passed external assurance audit with complete PPA documentation
Retail Chain
Head of Sustainability, Head of Sustainability
"Managing renewable certificates across 200 stores in 4 states was impossible in spreadsheets. NetNada allocates our national REC purchases optimally: covering high-emission coal grids first, then gas grids, leaving low-emission Tasmania uncovered. Maximised emissions reduction per certificate dollar spent. Achieved our 100% renewable electricity goal 18 months early."
Impact:
  • Optimised REC allocation across 200 sites reducing cost by 22%
  • Achieved 100% renewable electricity milestone 18 months ahead of schedule
  • Saved $35K annually through strategic certificate purchasing

Frequently Asked Questions

Everything you need to know about Scope 2 Market-Based Emissions Calculator

Is market-based calculation free?
Yes, market-based Scope 2 calculation is included in all NetNada plans including the free tier. Free users can track unlimited renewable certificates and calculate both location-based and market-based emissions. Paid plans add registry API integrations, bulk certificate uploads, and advanced allocation optimisation.
What's the difference between location-based and market-based?
Location-based uses grid-average emission factor for your physical location—same for everyone on that grid regardless of procurement choices. Market-based reflects contractual instruments: RECs, PPAs, green tariffs. If you purchase renewable electricity, market-based credits you with lower (often zero) emissions while location-based remains unchanged. GHG Protocol requires reporting both.
Do I need to report both location-based and market-based?
Yes, if reporting to CDP, Climate Active, SBTi, or following GHG Protocol Scope 2 Guidance (2015). Dual reporting provides transparency: location-based shows grid context, market-based shows procurement choices. Stakeholders use location-based for regional comparisons, market-based for evaluating company-specific renewable energy efforts.
What renewable energy instruments qualify for market-based?
Qualifying instruments under GHG Protocol: renewable energy certificates (RECs/LGCs in Australia, REGOs in UK, RECs in US), Power Purchase Agreements (PPAs) with generators, direct contracts with generators, supplier-specific emission rates (green tariffs with certificate retirement), on-site renewable generation. Must meet quality criteria: geographic/temporal/quantity matching.
Can I use international RECs for Australian electricity?
Generally no—GHG Protocol requires geographic matching (same market). Australian electricity consumption should be covered by Australian certificates (LGCs) or regional grid-compatible instruments. Using European REGOs for Sydney office would fail geographic matching and invalidate market-based claim. NetNada flags geographic mismatches automatically.
How does NetNada validate renewable certificates?
NetNada integrates with certificate registries (Australia REC Registry, international registries via API) to verify certificate validity: authentic serial numbers, correct vintage, retirement status, eligible technology. For manual uploads, we validate format and flag suspicious entries. Audit reports include registry screenshots and retirement confirmations.
What if I don't have enough certificates to cover all consumption?
Partial coverage is valid under GHG Protocol. Market-based calculation applies: (Covered MWh × 0 tCO₂e/MWh) + (Uncovered MWh × residual mix factor). Residual mix is grid average minus renewable sales. NetNada calculates both portions automatically and clearly reports % renewable coverage. Many companies start with partial coverage (e.g., 50%) and increase over time.
Does market-based work for Australian LGCs (Large-scale Generation Certificates)?
Yes, Australian LGCs (Large-scale Generation Certificates) are valid renewable energy certificates for market-based accounting. NetNada tracks LGC purchases, retirement in REC Registry, and allocation to electricity consumption. Also supports STCs (Small-scale certificates) for on-site solar <100kW. Fully compliant with Climate Active and NGER requirements for renewable claims.

Get Started with Market-Based Calculator

Claim Credit for Your Renewable Energy Procurement

Stop losing emissions credit for renewable energy investments. Market-based methodology ensures your RECs, PPAs, and green tariffs receive proper recognition in climate reporting. Join forward-thinking organisations accurately tracking renewable energy impact with NetNada.

Learn about location vs market-based