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17 Danir GHG inventory report 2022 | CHAPTER 5

5.1 Comparison between market-based and location-based calculation methods

Table 7 presents a comparison of how emissions from the production of purchased electricity, heating and
cooling differ depending on which allocation method is applied.

SCOPE 2 EMISSIONS – FROM PRODUCTION OF PURCHASED ENERGY [KG CO2-EQ]

Location-based allocation method Market-based allocation method

156,134 96,098

Table 7. Emissions from the production of purchased electricity, reported by applying the location-based and the market-based allocation method.

In Danir’s case, the carbon footprint obtained by applying the location-based allocation method is higher
than when the market-based method is applied. In terms of actual emissions, the difference between the two
calculation methods is 60,036 kg CO2-eq. The market-based allocation method – on which the primary results
of the GHG inventory are based – takes into account trade in origin-labelled electricity and district heating.
This creates an incentive to choose a renewable energy contract and shows that the climate impact of
purchased electricity and heating is something that can be influenced by active choices.