The Science Based Targets initiative (SBTi) is asking for feedback on potential changes to the electricity criteria included in its revised corporate net-zero standard.
The Corporate Net-Zero Standard 2.0 brings a significant overhaul in how companies should treat decarbonization of their electricity and energy supply, which falls under Scope 2 of the Greenhouse Gas (GHG) Protocol’s carbon accounting rules.
The revisions being circulated by SBTi for comment include suggestions for new text covering how companies should interpret and define grid deliverability regions and clarified language related to how older power purchase agreements will be recognized.
The input collected by SBTi could result in changes to the final text of the new corporate net-zero standard, which takes effect on Feb. 1, 2027. That’s not a foregone conclusion: SBTi’s technical council retains ultimate oversight.
The potential changes are intended to provide more clarity on an interim basis as companies begin to set targets under the revised standard in 2027, ahead of ongoing work by the GHG Protocol on revisions to the carbon accounting rules that govern purchased electricity, SBTi said.
In mid-October, GHG Protocol acknowledged it will consider an adjusted approach to Scope 2 based on comments it received over the summer, input from the Scope 2 technical working group and an Oct. 6 meeting of the Scope 2 independent standards board. More guidance is anticipated soon.
Popular feedback focus
Queries related to Scope 2 generated the second-highest number of comments during the formal consultation process for the new corporate net-zero standard, SBTi said. Most of the concerns covered in SBTi’s 20-page electricity criteria proposals document relate to these areas:
- How to interpret “deliverability regions”: The standard currently offers a high-level definition, in deference to the GHG Protocol’s ongoing revision process. SBTi proposes an interim list, so that companies don’t adopt differing approaches before the protocol’s changes are finalized.
- How to handle electricity load aggregation as part of complex contracts: The current text requires that the electricity covered under aggregated low-carbon electricity projects come from interconnected grids, which could limit potential deals. The interim language would ease that restriction.
- How lower-carbon electricity contracts signed before next February will be grandfathered: The proposed text change would recognize legacy contracts signed before that data, even if the power isn’t being delivered yet.
Expect more calls for feedback
The call for public comment on the net-zero electricity rules, which opened on Nov. 5 and will last 30 days, is part of a new feedback system enabled by updates to SBTi’s procedural guidelines in late October.
SBTI plans to analyze the comments it receives in December. Any changes that the organization opts to make will be implemented and published in January, along with a summary of the actions taken.
SBTi hinted that it anticipates “further interpretations, clarifications and additions” as the new edition of the net-zero standard is implemented.
“The new standard operating procedure places a greater emphasis on public comment periods to gather feedback,” SBTi said. “These can be shorter than public consultations because they are limited in scope.”