Understanding Scope 2 Emissions
Scope 2 emissions are indirect greenhouse gas emissions from the generation of purchased energy consumed by your organization. According to the GHG Protocol Scope 2 Guidance, these include:- Electricity: Power purchased from the grid or third-party providers
- Steam: Purchased steam for industrial processes
- Heating: District heating or purchased heat
- Cooling: District cooling services
Dual Reporting RequirementThe GHG Protocol requires organizations to report Scope 2 emissions using two methods:
- Location-based: Uses average grid emission factors for where energy is consumed
- Market-based: Uses supplier-specific emission factors based on contractual instruments
Prerequisites
Before starting, ensure you have:- Dcycle API credentials (get them here)
- At least one facility configured with the correct country
- Energy consumption data: electricity bills, utility invoices, or meter readings
- (Optional) Supplier information for market-based calculations
Calculating Electricity Emissions
Electricity consumption is typically the largest component of Scope 2 emissions. In Dcycle, these are tracked through invoices withtype: "electricity".
Emission Sources Covered
| Source Type | Invoice Type | Examples |
|---|---|---|
| Grid electricity | electricity | Office buildings, warehouses, factories |
| Renewable electricity | electricity + supplier | Green tariffs, PPAs, renewable certificates |
| District heating | COMING SOON! | Centralized heating systems |
| District cooling | COMING SOON! | Centralized cooling systems |
Calculation Methods: Location-based vs Market-based
- Location-based Method
- Market-based Method
The location-based method uses average grid emission factors based on where energy is consumed. This reflects the average emissions intensity of the local grid.Key characteristics:
- Uses country/regional grid average emission factors
- Emission factors from Ecoinvent and REE (Red Eléctrica Esañola)
- Updated when new version of Ecoinvent or REE (annually) is released
- Required for GHG Protocol compliance
Emission Factor Sources - Location-based
Emission Factor Sources - Location-based
For location-based calculations, Dcycle uses emission factors from:
- Ecoinvent - Global grid emission factors
- REE (Red Eléctrica de España) - Spain-specific factors
- Facility country
- Invoice year
- Latest available data version
Calculation Details - Location-based
Calculation Details - Location-based
Location-based emissions are calculated as:CO₂e = Energy Consumed (kWh) × Grid Emission Factor (kg CO₂e/kWh)Where:Note: Spain’s grid has been decarbonizing rapidly, so emission factors vary significantly by year.
- Energy Consumed: Electricity consumption in kWh
- Grid EF: Average emission factor for the country/region grid
Automatic Dual CalculationWhen you upload an electricity invoice, Dcycle automatically calculates both location-based and market-based emissions.
Both values are stored and available in reports for GHG Protocol compliance.
Data Flow
Configure Facility
Ensure your facility has the correct country configured (determines location-based EF)
(Optional) Set Up Supplier
Link an electricity supplier to enable market-based calculation with specific factors
Step 3.1: Create an Electricity Invoice (Location-based)
📋 Data Map: Electricity Invoice (Location-based)
📋 Data Map: Electricity Invoice (Location-based)
| Field | Type | Required | Description | Example |
|---|---|---|---|---|
type | string | ✅ | Invoice type | "electricity" |
facility_id | UUID | ✅ | Facility consuming the energy | "abc-123-..." |
base_quantity | number | ✅ | Energy consumed | 10000 |
unit_id | UUID | ✅ | Unit (kWh) | "ba80e6cb-..." |
start_date | date | ✅ | Billing period start | "2024-01-01" |
end_date | date | ✅ | Billing period end | "2024-01-31" |
invoice_id | string | ❌ | Your reference number | "ELEC-2024-001" |
uploaded_by | UUID | ✅ | User uploading | "user-uuid" |
- Facility ID: From Step 1 (company structure setup) or
GET /api/v1/facilities - Unit ID:
"ba80e6cb-86a4-4bb1-a0c5-8104365d523c"(kWh) - Quantity: From electricity bills, utility invoices, or smart meter data
No facility_fuel_id for electricity invoicesUnlike heat invoices, electricity invoices do not use
facility_fuel_id. The emission factors are determined automatically based on the facility’s country (location-based) or supplier/custom emission factor (market-based).Step 3.2: Create an Electricity Invoice (Market-based - Spain)
For facilities in Spain, usesupplier_id to enable market-based calculations with CNMC-published emission factors.
📋 Data Map: Electricity Invoice with Supplier (Spain)
📋 Data Map: Electricity Invoice with Supplier (Spain)
| Field | Type | Required | Description | Example |
|---|---|---|---|---|
type | string | ✅ | Invoice type | "electricity" |
facility_id | UUID | ✅ | Facility consuming the energy | "abc-123-..." |
base_quantity | number | ✅ | Energy consumed (kWh) | 10000 |
unit_id | UUID | ✅ | Unit (kWh) | "ba80e6cb-..." |
supplier_id | UUID | ✅ | Electricity supplier (Spain only) | "supplier-uuid" |
start_date | date | ✅ | Billing period start | "2024-01-01" |
end_date | date | ✅ | Billing period end | "2024-01-31" |
invoice_id | string | ❌ | Your reference number | "ELEC-2024-001" |
uploaded_by | UUID | ✅ | User uploading | "user-uuid" |
- Supplier ID:
GET /api/v1/suppliers?type=electricity- List electricity suppliers - Supplier-specific EFs: Automatically applied based on supplier selection
- For Spain: Suppliers are linked to CNMC-published emission factors
Spain Market-based Emission FactorsFor Spanish facilities with linked suppliers, Dcycle uses emission factors published by CNMC:
- Updated annually for each electricity retailer
- Reflects the actual energy mix of each supplier
- Renewable suppliers (100% green) will have 0 kg CO₂e/kWh
Step 3.3: Create an Electricity Invoice (Market-based - Outside Spain)
For facilities outside Spain, usecustom_emission_factor_id to enable market-based calculations with your own emission factor.
📋 Data Map: Electricity Invoice with Custom EF (Non-Spain)
📋 Data Map: Electricity Invoice with Custom EF (Non-Spain)
| Field | Type | Required | Description | Example |
|---|---|---|---|---|
type | string | ✅ | Invoice type | "electricity" |
facility_id | UUID | ✅ | Facility consuming the energy | "abc-123-..." |
base_quantity | number | ✅ | Energy consumed (kWh) | 10000 |
unit_id | UUID | ✅ | Unit (kWh) | "ba80e6cb-..." |
custom_emission_factor_id | UUID | ✅ | Your custom emission factor | "custom-ef-uuid" |
start_date | date | ✅ | Billing period start | "2024-01-01" |
end_date | date | ✅ | Billing period end | "2024-01-31" |
invoice_id | string | ❌ | Your reference number | "ELEC-2024-001" |
uploaded_by | UUID | ✅ | User uploading | "user-uuid" |
- Custom Emission Factor ID: Create via
POST /api/v1/custom_emission_factorsor use existing ones fromGET /api/v1/custom_emission_factors - Custom EF value: Obtain from your electricity supplier’s disclosure or certificates (e.g., Guarantees of Origin)
Step 3.4: Track District Heating and Cooling
📋 Data Map: District Heating/Cooling
📋 Data Map: District Heating/Cooling
| Field | Type | Required | Description | Example |
|---|---|---|---|---|
type | string | ✅ | Invoice type | "district_heating" or "district_cooling" |
facility_id | UUID | ✅ | Facility receiving the service | "abc-123-..." |
facility_fuel_id | UUID | ✅ | Heating/cooling fuel type | "heat-456-..." |
base_quantity | number | ✅ | Energy consumed | 5000 |
unit_id | UUID | ✅ | Unit (kWh or MJ) | "ba80e6cb-..." |
start_date | date | ✅ | Service period start | "2024-01-01" |
end_date | date | ✅ | Service period end | "2024-03-31" |
invoice_id | string | ✅ | Your reference | "HEAT-2024-Q1" |
uploaded_by | UUID | ✅ | User uploading | "user-uuid" |
supplier_id | UUID | ❌ | District service provider | "supplier-uuid" |
- Heating bills: From district heating provider
- Cooling bills: From district cooling provider
- Energy units: Typically kWh, MJ, or GJ
Automatic Data Import (Spain)
Querying Scope 2 Emissions
Get Electricity Emissions by Facility
Get Both Location and Market-based Results
Understanding Your Results
Why Location-based ≠ Market-based?
Why Location-based ≠ Market-based?
The two values represent different things:
- Location-based reflects the average grid emissions where you consume energy
- Market-based reflects your contractual arrangements with suppliers
- Market > Location: Your supplier has a higher carbon intensity than the grid average
- Market < Location: Your supplier uses more renewables than the grid average
- Market = 0: You have 100% renewable electricity contracts
Reducing Scope 2 Emissions
Reducing Scope 2 Emissions
Strategies to reduce Scope 2 emissions:
- Switch suppliers: Choose suppliers with lower emission factors
- Purchase green tariffs: 100% renewable electricity contracts
- Install on-site renewables: Solar panels, wind (moves to Scope 1 or carbon-neutral)
- Energy efficiency: Reduce overall consumption
- PPAs: Power Purchase Agreements with renewable generators
Renewable Energy and Market-based
Renewable Energy and Market-based
For renewable energy to count as zero emissions in market-based:
- Must have contractual proof (certificates, PPA, green tariff)
- Certificate must match consumption location and timing
- Guarantees of Origin (GOs) or RECs must be retired on your behalf

