What credible strategies can companies use to show Scope 2 progress in regions with fossil-heavy grids and immature renewable markets?

In regions where the grid is fossil-heavy and green electricity markets are not yet developed, many companies purchase EACs from neighboring countries with more mature systems. This is a valid way to reduce market-based Scope 2 emissions under the GHG Protocol.

At the same time, both CDP and the SBTi encourage companies in these regions to take an active role in supporting the development of local renewable markets. This includes:

1. Engaging with policymakers and regulators
2. Supporting local renewable projects or infrastructure
3. Making public commitments that signal demand for clean energy

Most of our clients in this situation take a combined approach: they use regional EACs now to meet reporting needs, and they lobby for long-term solutions by backing policy improvements and local market development.

ACT can help you source credible EACs in hard-to-reach regions and advise on how to align with CDP and SBTi expectations. Feel free to contact us to find a solution that fits your setup.