How are electricity Guarantees of Origin applied in corporate Scope 2 emissions accounting?

Electricity Guarantees of Origin (GOs) are official certificates that verify the method of electricity production (1 GO = 1 MWh). Electricity generated from renewable or zero‑emission energy sources and verified with Guarantees of Origin can be accounted as zero‑emission in market‑based Scope 2 calculations only if the GOs have been cancelled in the official registry. In location‑based Scope 2 accounting, GOs cannot be used.

What are electricity Guarantees of Origin (GO)?

Guarantees of Origin (GO) for electricity are official certificates intended to verify the origin of electrical energy, which can be used to demonstrate the energy source used to produce the electricity.

One Guarantee of Origin corresponds to one megawatt hour (1 MWh) of generated electricity. It is valid for 12 months from the date the energy was generated.

The European system for Guarantees of Origin is based on the Renewable Energy Directive (EU) 2018/2001 (RED II), which has been updated by Directive (EU) 2023/2413 (RED III). The purpose of the system is to improve transparency in energy production and to prevent double counting of renewable energy.

Guarantees of Origin can be issued for electricity produced from renewable energy sources (among others wind, solar, hydro and biomass) and nuclear power. In addition to electricity, GOs can also be issued for other renewable energy forms, such as gas and hydrogen, as well as district heating and district cooling.

Energy sellers, producers and users that market or communicate the use of renewable energy must demonstrate the origin of this energy with GOs.

Issuing a Guarantee of Origin requires verification of the energy’s origin. A GO is valid for 12 months from the date the energy was generated. The energy supplier and the energy user may utilize the GO during this period. The use of a GO must be reported to the electronic GO register for its cancellation. If the GO is not used within 12 months, it will expire.

Electricity Guarantees of Origin in market‑based Scope 2 emissions accounting

Scope 2 accounting covers the emissions from the energy a company purchases. In practice, this includes calculating the emissions from electricity, district heating, district cooling and process steam. According to the GHG Protocol standards and the Scope 2 guidance, emissions from purchased energy must be reported using both the market‑based and location‑based methods.

The market‑based method reflects the type of energy a company purchases. If a company procures electricity or district heating generated from renewable energy sources, it must be able to demonstrate this with Guarantees of Origin (GOs). Only in this case can renewable energy be counted as zero‑emission in market‑based Scope 2 accounting. A Guarantee of Origin can be used in calculations or communications only after it has been cancelled in the official registry.

If a company does not purchase Guarantees of Origin, it must use the residual mix emission factor provided by its energy supplier in market‑based accounting – not the supplier’s average emission factor for electricity sold. At present, only a limited number of energy suppliers publish residual mix factors. If these are not available, emissions must be calculated using the national residual mix emission factor published annually by the Finnish Energy Authority (390,93 g/kWh ).

In location‑based Scope 2 accounting, GOs cannot be used. Instead, emissions are calculated using the average emission factor of the electricity or district heating grid. This factor reflects the region’s average production mix and does not account for the specific type of energy a company has purchased.

Emission Factors Used in Scope 2 Accounting
Market‑based			Location‑based
0 g/kWh (cancelled GOs)	Company‑specific residual mix	National residual mix	Grid‑specific production mix

What information must a renewable energy certificate contain

 When we calculate companies’ greenhouse gas emissions and verify the results, we also review the Guarantees of Origin (GOs) they have used. This year, we have again seen a wide variety of certificates — some accurate and well-documented, others with clear gaps in essential details.

What information must a renewable energy Guarantee of Origin certificate contain?

When we calculate companies’ greenhouse gas emissions and verify the calculations made, we always review the Guarantees of Origin certificates used for electricity. This year, we have seen a variety of certificates – some are accurate and carefully documented, but others have clear gaps in essential details.

The Guarantee of Origin certificate must contain the following information:

1. Information about the production facility
   • Name
   • Location
   • Type
   • Capacity
   • Date of commissioning
2. Whether the certificate concerns electricity, gas, hydrogen, heat or cooling
3. The energy source used to produce the energy (e.g. wind power, hydropower, nuclear)
4. Start and end date of production period
5. Information on any public financial support received by the production facility and the type of support
6. Issuance date and issuing country of the Guarantee of Origin
7. Unique identification number of the Guarantee of Origin.

The Guarantee of Origin certificates that companies issue to their customers rarely include all this information. They may look like official certificates with signatures, but they may be missing critical information. In the worst case, the certificate has been missing both the name of the company it was issued to and the period it covers. A certificate like this could in principle be reused year after year by anyone.

The most common omissions include:

1. No mention of the production facility
2. No information about the energy source used
3. Missing information on the energy quantity (MWh/kWh)
4. No information on the time period or only the start date is specified

There are also some good examples among the Guarantees of Origin certificates. Turku Energia’s guarantee of origin certificate includes Finextra’s cancellation certificate for guarantees of origin, which contains all the necessary information. Helen’s wind power Guarantee of Origin certificate also contains the key information.

Requirements for using GOs in emissions calculations

In order for Guarantees of Origin for electricity to be used in emissions calculations, the consultant and verifier must be able to verify that the GOs have been issued to a specific company and that they apply to a specific time period, a specific form of production, and a specific quantity of energy. If a company purchases GOs for several sites at the same time, it must be ensured that the amount of GOs purchased corresponds to the combined electricity consumption of those sites and that they are allocated to the correct contracts.

The energy source is essential information in emissions calculations – in addition to Scope 2 calculations, it is also needed in Scope 3 category 3 calculations of upstream energy emissions. If a GO covers several energy sources (e.g., hydropower and wind power), these shares should be specified in the certificate

If the information in the Guarantee of Origin certificate is incomplete, the missing details must be requested from the issuer of the certificate. This ensures the reliability of the emissions calculation and compliance with the GHG Protocol.

What changes in the upcoming update to the GHG Protocol’s Scope 2 guidance?

The GHG Protocol’s Scope 2 guidance is currently being updated, and stakeholders were asked to provide comments at the turn of the year.

The new guidance is expected to introduce stricter requirements for Guarantees of Origin. In the future, GOs would need to be purchased from the same electricity grid region where they are used, and would have to be allocated to the same period in which the renewable or emission-free electricity was produced.

The revised Scope 2 guidance is expected to be completed during 2027. The progress of the updates can be followed on the GHG Protocol website.

GO checklist for companies

When purchasing Guarantees of Origin (GO) certificates for your company, remember the following:

1. Purchase GOs from from a reliable source
   • Ensure that they are official Guarantees of Origin (GOs) that have been issued and cancelled in an official registry (e.g., Fingrid / Finextra)
   • Avoid vague or informal “certificates” that do not contain sufficient information
   • Only cancelled GOs can be used in market‑based Scope 2 accounting.
   • If needed, request a separate cancellation statement from the issuer, for example from Finextra
2. Check that the GO certificate includes all essential information:
   • Your company’s name, to whom the GOs have been issued
   • The time period covered by the GOs
   • The amount of energy (kWh / MWh) covered by the GOs
   • The production method and energy source (e.g., wind, solar, hydro, bioenergy or nuclear)
   • The issuance and cancellation date of the GO, and the issuing country
   • Information on any public support received
   • The unique identification number of the GO
3. Allocate the GOs to the correct contracts and sites
   • If GOs are purchased for several sites, make sure the amount of GOs covers their combined consumption and that the allocation is documented.
4. Request GO certificates in good time so they are available to the consultant and verifier.
5. Retain the GO certificates, cancellation statements and consumption data for emissions accounting and verification purposes
6. You can use the GO certificate in market‑based Scope 2 accounting
   • It demonstrates the origin of the energy and that the purchased energy is zero‑emission.

The OpenCO2 emissions database provides up‑to‑date emission factors for both market‑based and location‑based Scope 2 accounting. GHG Protocol–compliant Scope 1–3 emissions can be calculated easily with the OpenCO2net platform’s emissions calculator. In addition to these tools, we offer expert support for emissions accounting and verification. We can also assist in interpreting GHG Protocol standards and guidance.