Corporate greenhouse gas inventories, guarantees of origin and combined heat and power production – Analysis of impacts on total carbon dioxide emissions

The Greenhouse Gas Protocol ‘Corporate Accounting and Reporting Standard’ (Corporate Standard) and the EU frameworks of guarantees of origin (GO) and emissions disclosure of energy carriers are intended to inform decision-making and reduce GHG emissions. This study analyses how decisions on purchases of electricity and district heating and decisions on combined heat and power (CHP) production are incentivised by the Corporate Standard and EU frameworks. It also analyses how the EU frameworks relate to CO2 emissions reductions through CHP production. Using a consequential CO2 assessment method for comparison, the study shows that purchasing decisions supported by the Corporate Standard or the GO scheme can increase total CO2 emissions. It also shows that the Corporate Standard and EU frameworks can counteract CHP production and its contribution to CO2 emissions reduction. We recommend that consequential GHG assessment methods be used for emissions reduction decisions, including when designing policy instruments aimed at emissions reduction. •Emissions reduction incentives in GHG inventory and EU framework are analysed•Use and production of electricity and combined heat and power heat are studied•Climate work based on corporate GHG inventory can increase total GHG emissions•Use of renewable guarantees of origin removes the incentive for energy efficiency•GHG inventories and EU framework can reduce combined heat and power production