Scope 2 emissions are indirect emissions from the generation of purchased electricity, steam, heating, and cooling services consumed by businesses.
The calculation involves multiplying the annual electricity consumption in kilowatt hours (kWh) by the appropriate regional emission factor (g CO₂e per kWh).
Emissions (g CO₂e) = Electricity Used (kWh) x Emission Factor (g CO₂e / kWh)
Example calculation (electricity consumption)
Let’s assume your SME is a small office-based business that consumes 50,000 kWh of purchased electricity per year.
The emission factor for electricity varies across Canada and is both location-based and market-based.
- Each region’s electricity grid has a different emission factor that depends on the energy mix (renewables, coal, natural gas, etc.).
- Some regions have the option of buying green electricity (renewables only).
Scenario 1: SME is located in Ontario and purchases grid electricity with an emission factor of 59 g CO2e / kWh (hydro and nuclear)
Emissions (g CO₂e) = Electricity Used (kWh) x Emission Factor (g CO₂e / kWh)
Emissions (g CO₂e) = 50,000 kWh x 59 g CO₂e / kWh = 2,950,000 g CO₂e
Scenario 2: SME is located in Ontario and buys green electricity with an emission factor of 0 g CO2e / kWh
Emissions (g CO₂e) = Electricity Used (kWh) x Emission Factor (g CO₂e / kWh)
Emissions (g CO₂e) = 50,000 kWh x 0 g CO₂e / kWh = 0 g CO₂e
Scenario 3: SME is located in Alberta and purchases grid electricity with an emission factor of 438 g CO₂e / kWh (primarily fossil fuels)
Emissions (g CO₂e) = Electricity Used (kWh) x Emission Factor (g CO₂e / kWh)
Emissions (g CO₂e) = 50,000 kWh x 438 g CO₂e / kWh = 21,900,000 g CO₂e
Where can I find emission factors for electricity consumption?
Environment and Climate Change Canada (ECCC) have published electricity consumption emission factors by province and territory in Canada. See Table 5.1 (2023 and 2024), Table 5.2 (2025) and Table 5.3 (2026).
