Summary: This is an extract from Chapter 5.
Category 3: Fuel- and energy-related emissions not included in scope 1 or scope 2
This category includes emissions related to the production of fuels and energy purchased and consumed by the reporting company in the reporting year that are not included in scope 1 or scope 2.
Category 3 excludes emissions from the combustion of fuels or electricity consumed by the reporting company, since they are already included in scope 1 or scope 2.
Scope 1 includes emissions from the combustion of fuels by sources owned or controlled by the reporting company. Scope 2 includes the emissions from the combustion of fuels to generate electricity, steam, heating, and cooling purchased and consumed by the reporting company.
This category includes emissions from four distinct activities (see table 5.5).
Table 5.5
| Activity | Description | Applicability |
|---|---|---|
| a. Upstream emissions of purchased fuels | Extraction, production, and transportation of fuels consumed by the reporting company <br> - Examples include mining of coal, refining of gasoline, transmission and distribution of natural gas, production of biofuels, etc. | Applicable to end users of fuels |
| b. Upstream emissions of purchased electricity | Extraction, production, and transportation of fuels consumed in the generation of electricity, steam, heating, and cooling that is consumed by the reporting company <br> - Examples include mining of coal, refining of fuels, extraction of natural gas, etc. | Applicable to end users of electricity, steam, heating, and cooling |
| c. T&D losses | Generation of electricity, steam, heating, and cooling that is consumed (i.e., lost) in a T&D system – reported by end user | Applicable to end users of electricity, steam, heating, and cooling |
| d. Generation of purchased electricity that is sold to end users | Generation of electricity, steam, heating, and cooling that is purchased by the reporting company and sold to end users – reported by utility company or energy retailer <br> - Note: This activity is particularly relevant for utility companies that purchase wholesale electricity supplied by independent power producers for resale to their customers. | Applicable to utility companies and energy retailers |
| Reporting Company | Scope 1 | Scope 2 | Scope 3 |
|---|---|---|---|
| Coal mining, processing, and transport (Company A) | 5 t CO₂e | 0 (unless electricity is used during coal mining and processing) | 100 t CO₂e from the combustion of sold products (i.e., coal) <br> Reported in category 11 (Use of sold products) |
| Power generator (Company B) | 100 t CO₂e | 0 | 5 t CO₂e from the extraction, production, and transportation of fuel (i.e., coal) consumed by the reporting company <br> Reported in Category 3 (Fuel- and energy-related activities) <br> Note: The generator does not account for scope 3 emissions associated with sold electricity because the emissions are already accounted for in scope 1. |
| Utility (Company C) | 0 (unless SF₆ is released from the T&D system) | 10 t CO₂e from the generation of electricity purchased and consumed by Company C | 0.5 t CO₂e from the extraction, production, and transportation of fuels (i.e., coal) consumed in the generation of electricity consumed by Company C (5 tons from coal mining x 10 percent of electricity generated by B that is consumed by C) <br> 94.5 t CO₂e from the generation of electricity purchased by Company C and sold to Company D <br> Both are reported in category 3 (Fuel- and energy-related activities) |
| End consumer of electricity (Company D) | 0 | 90 t CO₂e from the generation of electricity purchased and consumed by Company D | 4.5 t CO₂e from the extraction, production, and transportation of coal consumed in the generation of electricity consumed by Company D <br> 10.5 t CO₂e from the generation of electricity that is consumed (i.e., lost) in transmission and distribution <br> Both are reported in category 3 (Fuel- and energy-related activities) |