CEA Carbon Footprint & Emissions Tracking 4 — Questions and Answers
Question 1: What is the primary difference between market-based and location-based methods for calculating Scope 2 emissions?
- Market-based uses satellite data; location-based uses utility bills
- Market-based reflects contractual energy purchases; location-based uses average grid emission factors (Correct answer)
- Market-based applies only to renewables; location-based applies to fossil fuels
- Market-based is voluntary; location-based is mandatory under US law
Correct answer: Market-based reflects contractual energy purchases; location-based uses average grid emission factors
The market-based method uses emission factors from contractual instruments like RECs or power purchase agreements, while the location-based method uses average grid emission factors for the region.
Question 2: A company purchases Renewable Energy Certificates (RECs) to offset its electricity consumption. Under which Scope 2 accounting method would this reduce reported emissions to near zero?
- Location-based method
- Market-based method (Correct answer)
- Direct measurement method
- Operational control method
Correct answer: Market-based method
Under the market-based method, purchasing RECs allows a company to claim zero-emission electricity and report near-zero Scope 2 emissions for that consumption.
Question 3: Which type of emission factor would an analyst use to convert natural gas consumption (in MMBtu) to CO2e?
- eGRID subregional emission factor
- Stationary combustion emission factor from EPA (Correct answer)
- Vehicle miles traveled emission factor
- Waste disposal emission factor
Correct answer: Stationary combustion emission factor from EPA
EPA provides stationary combustion emission factors for natural gas and other fuels expressed in units of CO2e per MMBtu of energy content.
Question 4: Under the GHG Protocol, which approach requires a company to consolidate 100% of emissions from operations based on the percentage of economic interest it holds?
- Operational control approach
- Financial control approach
- Equity share approach (Correct answer)
- Operational boundary approach
Correct answer: Equity share approach
The equity share approach requires a company to account for GHG emissions from operations in proportion to its equity share (ownership percentage) in those operations.
Question 5: Which industry sector is typically the largest source of greenhouse gas emissions in the United States?
- Agriculture
- Industry
- Transportation (Correct answer)
- Commercial buildings
Correct answer: Transportation
According to the EPA's US GHG Inventory, the transportation sector has been the largest source of GHG emissions in the US since 2016, primarily from fossil fuel combustion.
Question 6: What is 'carbon intensity' as used in energy and emissions analysis?
- The total volume of CO2 stored in a carbon sink
- GHG emissions per unit of economic output or energy produced (Correct answer)
- The concentration of CO2 in the atmosphere in parts per million
- The maximum allowable CO2 emissions under a regulatory cap
Correct answer: GHG emissions per unit of economic output or energy produced
Carbon intensity measures GHG emissions per unit of output (e.g., kg CO2e per MWh, or kg CO2e per dollar of revenue), enabling comparison across facilities or sectors.
Question 7: A facility that captures methane from a landfill and burns it for electricity generation reduces net GHG emissions primarily because:
- Landfill gas has no carbon content
- Combustion converts high-GWP methane to lower-GWP CO2 (Correct answer)
- The electricity offsets coal generation with zero net emissions
- Landfill gas is classified as a renewable energy source exempt from reporting
Correct answer: Combustion converts high-GWP methane to lower-GWP CO2
Methane has a GWP ~28 times that of CO2; combusting it converts CH4 to CO2, significantly reducing the climate impact of the emissions on a CO2e basis.
CEA Carbon Footprint & Emissions Tracking 4
What is the primary difference between market-based and location-based methods for calculating Scope 2 emissions?