Configuring market-based emission factors

This article explains how to configure market-based emission factors in Scaler so you can reflect supplier-specific contractual instruments (renewable energy tariffs, PPAs, Energy Attribute Certificates) in your Scope 2 emissions calculations.

Market-based emission factors allow organizations to account for contractual arrangements made to purchase energy, rather than defaulting to grid-average emission factors.

For technical methodology on GHG Protocol hierarchy and quality criteria, see Market-based emission factor methodology.

For location-based emission factors, see Configuring location-based emission factors.

Use market-based accounting when you have:

Important: Market-based accounting applies only to Scope 2 emissions (purchased electricity, steam, heat, and cooling).

For methodology on when market-based applies and quality criteria, see Market-based emission factor methodology.

Market-based factors are not applied automatically

Scaler only uses market-based factors when you explicitly link a meter to a supplier. This ensures you remain in control and maintain GHG Protocol compliance.

Scope 2 only

Under the GHG Protocol, market-based accounting applies only to Scope 2 emissions (purchased electricity, steam, heat, and cooling).

Warning

If you link a Scope 1 fuel meter or Scope 3 tenant-controlled meter to a Supplier with a market-based emission factor, those emissions will be calculated using the market-based factor. This breaks GHG Protocol requirements. Always verify meter scope before linking suppliers.

Fallback to location-based

If no market-based factor is configured for a given year, Scaler automatically falls back to location-based emission factors. This ensures reporting completeness and enables dual reporting.

For more on fallback logic, see Market-based emission factor methodology — How Scaler applies market-based factors.

To configure market-based emission factors, complete these steps in order:

Before configuring market-based factors, verify that meters exist with the correct Subcategory + Source combinations.

Navigation: Data Collection Portal → Portfolio → Asset List → select asset → Meters & Consumption

Each meter must have:

Critical requirement

The Subcategory + Source combination must exactly match the combinations you configure in the market-based emission factor tool. Mismatches will prevent the factor from being applied.

This unlocks the configuration table for market-based emission factors.

Energy supplier regions define where supplier contracts apply.

Regions can be:

To add a region:

These regions later appear in the Energy supplier region field at the asset level.

Tip

Create regions that match your actual supplier contract boundaries. For example, if you have one supplier contract covering all assets in California, create a "California" region.

For every energy supplier used in that region:

Examples:

If multiple suppliers operate within the same region, all must be added.

Important: If you have the same supplier in multiple regions with different contracts, add that supplier to each applicable region. The emission factors can differ by region for the same supplier.

For each supplier, define all energy types for which supplier-specific emission factors exist.

Examples:

Steps:

Critical requirement

These combinations must correspond to the meters they will apply to. If you set up a meter as ‘Off-site Electricity + Green (wind EU)’ but in the emission factor table you set the emission factors under to be ‘Off-site Electricity + Green (wind)’, the emission factors won’t apply to that meter.

For each Subcategory + Source combination, complete the following:

Reference field

Describe the contractual instrument used. Examples:

Important: The Reference field creates your audit trail. Be specific enough that an auditor can understand what contractual instrument was used.

For audit requirements, see Market-based emission factor methodology — Audit trail requirements.

Emission factor values (kg CO₂e per kWh)

If no value is entered for a year: Scaler falls back to location-based factors for that year.

Important rule: Emission factors must apply to 100% of consumption

If a meter receives electricity from multiple sources (e.g., 60% green, 40% grey), the emission factor must represent the blended contractual emissions rate for all consumption.

Example:

Meter mix:

Blended rate:

(0.60 × 0) + (0.40 × 0.5) = 0.2 kg CO₂e per kWh

Enter 0.2 kg CO₂e per kWh — Scaler will apply this to 100% of consumption.

Do not enter separate rows for the green and grey portions. Supplier-provided factors already account for the mix.

For detailed methodology, see Market-based emission factor methodology — Handling mixed-source electricity.

At the asset level:

This determines which suppliers appear as options for meters in that asset.

Tip

If you don't see the Energy supplier region field, verify that you've created at least one energy supplier region in step 3.

For each meter that should use market-based accounting:

Once linked:

Warning

Only link suppliers to Scope 2 meters (landlord-controlled electricity, steam, heat, cooling). Do not link suppliers to Scope 1 fuels or Scope 3 tenant-controlled meters — this will misapply market-based accounting.

Spreadsheet field naming must match the platform exactly:

If the spelling does not match exactly:

Check spacing, capitalization, and punctuation carefully.

To bulk update:

Problem: Market-based factor is not being applied

Possible causes:

Solution: Verify all linkages and ensure exact matches. Check each step of the workflow.

Problem: Scope 1 or Scope 3 meter is using market-based factor

Cause: The meter was incorrectly linked to a Supplier with a market-based emission factor.

Why this is wrong: Under the GHG Protocol, market-based accounting only applies to Scope 2 emissions.

Solution: Unlink the supplier from that meter, or verify the meter's scope classification is correct.

Problem: Spreadsheet upload fails for supplier or region fields

Cause: Spelling, spacing, or capitalization doesn't match platform exactly.

Solution: Use the download template to verify exact naming conventions. Copy names directly from the platform.

Problem: I entered separate emission factors for green and grey portions, but emissions look wrong

Cause: Scaler applies the emission factor to 100% of consumption. Entering separate factors overstates or understates emissions.

Solution: Calculate the blended rate and enter a single value.

Problem: Supplier changed mid-year — how do I handle this?

Cause: Meter switched suppliers during the consumption year.

Solution: Either (1) split the meter into two version, or (2) enter a weighted average emission factor for the full year and document the approach in the Reference field.

Problem: I want to use residual mix but it's not available for my region

Cause: Residual mix is only published in certain regions (primarily EU).

Solution: Per GHG Protocol guidance, use the location-based grid-average factor as your market-based factor in regions without residual mix. Document this in the Reference field: "Grid-average factor (residual mix not available)".

Scaler follows the GHG Protocol Scope 2 guidance.

A supplier emission factor is applied when all of these conditions are met:

Fallback occurs when any condition is not met:

This ensures reporting accuracy and alignment with GHG Protocol dual reporting requirements.

Important: The GHG Protocol requires organizations to report both location-based and market-based emissions for Scope 2.

Scaler supports this by:

What this means for you:

Even if you configure market-based factors, you must still report location-based emissions. Scaler calculates both automatically so you can meet dual reporting requirements.