Tackling One of the Largest and Most Visible Categories in Your Carbon Footprint
If your organization is working toward decarbonization, one of the first places to start is Scope 2 emissions—the indirect emissions from the electricity, heating, and cooling you purchase.
While Scope 1 emissions (from owned vehicles or combustion on-site) are highly specific to operations, and Scope 3 (value chain emissions) can be hard to control, Scope 2 is measurable, reportable, and actionable.
Enter EFECs—Emission-Free Energy Certificates. These tools are helping organizations across industries eliminate Scope 2 emissions quickly, affordably, and without changing utility providers.
A Quick Refresher: What Are Scope 2 Emissions?
Scope 2 emissions refer to the indirect greenhouse gas emissions associated with the generation of purchased electricity, steam, heating, or cooling. Even though you didn’t generate the emissions yourself, they are attributed to your organization if you consumed the energy.
According to the GHG Protocol, Scope 2 emissions must be reported under two methods:
- Location-Based Method – Emissions calculated using the average emissions intensity of the local grid
- Market-Based Method – Emissions calculated based on contractual instruments like RECs or EFECs
EFECs are used under the market-based method to claim the use of zero-emission power.
How Do EFECs Work?
Each EFEC represents 1 megawatt-hour (MWh) of carbon-free electricity generated from sources like nuclear or hydro. When you buy and retire EFECs equal to your electricity consumption, you are entitled to report that power as zero-emission.
Let’s say your business uses 10,000 MWh of electricity annually. By purchasing and retiring 10,000 EFECs, you can report zero Scope 2 emissions via the market-based method—just as you would with RECs.
But here’s where EFECs stand out:
- They come from 24/7 reliable baseload sources (e.g., nuclear)
- They’re often less expensive than RECs
- They’re available in larger quantities—ideal for high-demand users
Why Offset Scope 2 Emissions with EFECs?
✅ They’re Verifiable
Each EFEC is traceable to a clean energy generator and retired in an official registry.
✅ They’re Recognized
EFECs are accepted in ESG frameworks such as CDP, GRESB, SASB, and more.
✅ They’re Affordable
Compared to building your own renewables or using premium-priced RECs, EFECs offer one of the most cost-effective carbon reduction tools.
Real-World Example: A Data-Driven Reduction
A regional bank with 140 branches consumed 18,500 MWh annually across 7 states. Instead of sourcing renewables directly or waiting for grid changes, they:
- Purchased 18,500 EFECs
- Retired them quarterly for Scope 2 accounting
- Reported 100% carbon-free electricity use in their ESG disclosure
- Saved 28% compared to their previous REC contract
EFECs vs. Traditional Carbon Offsets
Feature | EFECs | Carbon Offsets |
Targeted Scope | Scope 2 (Electricity Use) | Often Scope 1 or 3 |
Emissions Reduction Type | Avoidance (replaces grid energy) | Avoidance or Removal |
Verifiability | Certificate-Based, Retired in Registry | Varies by provider |
Tangibility to Business | Matches direct utility use | May be abstract (e.g., forestry) |
EFECs are not general carbon offsets. They are electricity-specific, and they directly replace grid energy that would have emitted CO₂.
How to Get Started with EFECs for Scope 2
- Determine Your Electricity Use (MWh)
Use utility bills or energy management tools to get your annual usage. - Decide What Portion to Offset
100% is ideal, but many start with 25–50% and grow over time. - Partner with an EFEC Provider
Choose a supplier that offers verified, registry-backed certificates. - Purchase and Retire EFECs
Track retirements and save documentation for your ESG audit or report.
Final Thought: Get Ahead of the Curve
Scope 2 is one of the few emissions categories you can completely eliminate with the stroke of a pen—and EFECs are one of the fastest, cleanest, and most cost-effective ways to do it.
📘 Download the free eBook, “Achieve Carbon Neutrality with Ease – Explore EFECs,” to learn more about how EFECs can fit into your energy strategy.
📞 Questions? Talk to one of our advisors at 1-866-603-1462
📧 Or email: info@mybrilliantsource.com
