How do companies use RECs for Scope 2?

The GHG Protocol Scope 2 Guidance (2015) asks companies to report purchased electricity emissions in two ways:

• Location-based: uses the average grid emission factor (in India, the CEA CO2 Baseline Database).
• Market-based: uses the emission factors from the contracts and certificates you actually hold, such as RECs, green tariffs or PPAs.

To count under the market-based method, an instrument must meet the guidance's Scope 2 Quality Criteria, which include that it carries the renewable claim, is tracked and redeemed or cancelled for you, is the only claim on that MWh, and matches the period and market of your consumption. The GHG Protocol ran a public consultation on revising the Scope 2 Guidance from 20 October 2025 to 31 January 2026, so the rules may change (GHG Protocol, 2026).

For businesses

• Report both location-based and market-based Scope 2 figures.
• Keep proof that RECs were redeemed or extinguished for your consumption in the right year.
• Explain how you treat multiplied RECs, since a multiplier means one certificate may not equal 1 MWh.
• Do not use RECs to claim reductions in Scope 1 or Scope 3, and do not call them carbon offsets.

For individuals

Households cannot usually buy RECs directly in India. The practical routes are rooftop solar, choosing a green tariff where your discom offers one, and using less electricity.