The Time Is Now for Stakeholders to Engage in the GHG Protocol & SBTi Revisions

The corporate clean energy market has proven itself as one of the most reliable drivers of renewable energy deployment worldwide. Since 2014, commercial and industrial customer-led procurement of wind, solar, and battery storage has amounted to 64.5 gigawatts (GW) of new carbon-free energy capacity in the United States alone—equivalent to over 40% of all new clean energy capacity additions during this timeframe. Yet we now stand at a critical juncture in global climate action, and the frameworks that guide these investments—Science Based Targets initiative (SBTi) and the Greenhouse Gas Protocol (GHG Protocol)—are undergoing major revisions to “Scope 2” accounting that could fundamentally reshape where and how corporate dollars flow.

Givenlow electrification rates across sub-Saharan Africa and the miniscule amount of climate finance currently reaching the continent, an important question in light of these dual revision processes is: How can we ensure that these frameworks incentivize corporations to support clean energy projects that maximize global emission reductions and support increased access to energy in underserved markets?

A Moment of Unprecedented Risk and Opportunity 

During the recent Leapfrog Alliance webinar, "Getting corporate incentives right for maximum decarbonization and socioeconomic benefits" (recording here), panelists from three continents painted a picture of both the immense potential and significant risks embedded in the current revision processes. The timing could not be more critical, given how multi-year revisions are underway to guidance that both SBTi and the GHG Protocol respectively provide to “Scope 2” target-setting and accounting. 

The stakes extend far beyond corporate boardrooms. During the webinar, Abraham Mudasia from the African Minigrid Developers Association (AMDA) shared compelling stories about distributed renewable energy project developers across Africa who are transforming entire communities by building minigrids that extend access to clean energy. These projects don't just reduce emissions—they enable local economic development, improve healthcare delivery, enhance educational opportunities, and provide the foundation for broader peace and prosperity. Yet many of these high-impact initiatives struggle to attract corporate investment under the incentive structures that are currently embedded in greenhouse gas target-setting and accounting frameworks like SBTi and the GHG Protocol.

The Corporate Incentive Challenge

Today's $10B+ annual voluntary clean energy procurement market operates within a system of incentives largely shaped by SBTi and the GHG Protocol. SBTi establishes best practices around the climate goals that thousands of companies pursue, while the GHG Protocol defines what "counts" for corporate emissions reporting claims. 

Currently, the GHG Protocol and other initiatives like RE100 limit companies to procuring clean energy within the same “market boundary” as their physical energy consumption. In effect, this incentive structure channels most clean energy procurement and resulting investments to a handful of developed economies with robust existing energy infrastructure, while unintentionally restricting procurement elsewhere. It also perpetuates underinvestment in clean energy in the places currently with the lowest electrification levels and most carbon-intensive energy systems.

As Abby Davidson from Engie Impact explained during the webinar, greenhouse gas accounting often serves as the "first filter" for corporate procurement decisions. If a project doesn't align with accounting requirements, it may never receive consideration, regardless of its potential for decarbonization impact or community benefits. This creates a systematic bias toward investments in already well-served markets while underserving regions where corporate investment could deliver transformational change.

A Critical Gap in Stakeholder Engagement

Perhaps the most striking insight from the webinar was how the respective revision processes have involved only a limited set of stakeholders. Most of the engagement has come from traditional players—large corporations, established clean energy developers, and clean energy and climate advisory firms operating in mature markets. Missing from these conversations are crucial voices: mini-grid developers working in the least developed countries, policymakers and non-governmental organizations representing underserved markets, and key financial institutions operating in these markets.

There is an opportunity during the upcoming public comment period for these stakeholders to engage more proactively, leverage existing resources, and support recommendations like the recent appeal Energy Peace Partners submitted to the GHG Protocol to provide complete guidance and drive stronger corporate incentives for decarbonization impact and energy access globally.

The Path Forward: Expanding Stakeholder Engagement

The opportunity before us is clear: we must broaden engagement among a more diverse cohort of stakeholders in these revision processes, in order to reshape corporate incentives in a way that enables them to support clean energy in underserved communities. This isn't just about fairness—it's about effectiveness. When corporate procurement dollars flow to projects that deliver the greatest impact per dollar spent, this accelerates both global decarbonization and sustainable development.

Chandni Das from WattTime emphasized during our webinar how carbon accounting frameworks could better incentivize high-impact projects by incorporating marginal emissions impact calculations. This new approach would reward corporate investments in projects that deliver the greatest actual emissions reductions rather than simply following accounting conventions that may not reflect real-world climate impact.

As we approach the critical public consultation periods for both the GHG Protocol and SBTi revisions, there is a narrow but important window to ensure these frameworks incorporate diverse perspectives and create incentives that maximize both climate and development goals.

A Call for Broader Participation

The revision processes for both the GHG Protocol and SBTi include opportunities for public participation this fall. However, participation requires awareness, capacity, and coordination. This is where the Leapfrog Alliance and similar initiatives can play a crucial role. By expanding the conversation beyond the current set of stakeholders, amplifying new and diverse voices, and providing technical capacity, we can mobilize collective action to ensure that the final frameworks are both more representative of the spectrum of views and more effective at meeting global climate goals. 

What's at Stake

The decisions made in these revision processes will shape corporate clean energy procurement for the next decade. Research suggests that by permitting companies to optimize their procurement in the places that offer the greatest impact, the GHG Protocol could free up 325 terawatt-hours (TWh) of corporate demand currently tethered to select geographies by the existing market boundary rules, and thereby drive $85 billion of investment into developing economies by 2040. The emissions impact would be significant, amounting to 1.7 billion tonnes of CO2 savings over the next 15 years.

During the webinar, Steven Vanholme from EKOenergy highlighted how specialized impact labels and platforms like EKOenergy and Peace Renewable Energy Credits (P-RECs) can help buyers identify and support high-impact projects if improved incentives that create the biggest possible menu of clean energy procurement options for corporate buyers are in place.

Realizing this potential requires frameworks that create the right incentives—incentives that can only emerge from inclusive processes that reflect more diverse perspectives and priorities.

Looking Ahead

As we look toward the public consultation periods ahead, the message from the webinar was clear: the time for engagement is now. Organizations working on climate action, sustainable development, and energy access in underserved communities must participate in these processes. Without such participation, there is a notable risk of perpetuating systematic underinvestment in the communities and projects that could deliver the greatest combined climate and development impact.

The Leapfrog Alliance stands ready to support this engagement, offering resources, coordination, and opportunities for advocacy to enable organizations that may not have previously participated in these standard-setting processes to do so. Because when we get corporate incentives right—aligning them with both maximum decarbonization and energy access goals—we can unlock the potential for corporate procurement to drive transformational change in all communities worldwide.

Join us! 

The Leapfrog Alliance brings together nonprofits globally to create stronger incentives for corporate investment in clean energy access in unelectrified and underserved communities. Learn more about our work and how nonprofits can join our coalition at leapfrogalliance.org.