GHG Protocol
Corporate Accounting and Reporting Standard
The GHG Protocol Corporate Standard is the world's most widely used greenhouse gas accounting framework, providing the foundational Scope 1, 2, and 3 methodology underpinning virtually every major corporate climate reporting programme globally — and explicitly required by UAE Federal Decree-Law No. (11) of 2024.
What is GHG Protocol?
The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard — commonly called the 'GHG Protocol Corporate Standard' — was co-developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). First published in 2001 and revised in 2004, the Revised Edition remains the current version. A comprehensive update process was initiated in 2024 and is expected to conclude around 2026.
The GHG Protocol introduced the three-scope framework that has become the universal language of corporate carbon accounting: Scope 1 covers direct emissions from sources owned or controlled by the organisation; Scope 2 covers indirect emissions from purchased electricity, steam, heat, or cooling; and Scope 3 covers all other indirect emissions across the organisation's value chain, addressed in detail in the companion 2011 Scope 3 Standard.
The standard covers all seven greenhouse gases regulated under the Kyoto Protocol: CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, and NF₃. Emissions are expressed in tonnes of CO₂-equivalent (tCO₂e), applying the 100-year Global Warming Potential (GWP) values from IPCC Assessment Reports.
UAE Federal Decree-Law No. (11) of 2024 explicitly requires that all UAE businesses subject to mandatory GHG reporting apply GHG Protocol-aligned calculations for their emissions quantification. This makes the GHG Protocol a de facto legal requirement for UAE businesses, not merely a voluntary best practice.
What the Global Accounting Framework requires
The Three-Scope Framework
The standard's defining contribution: Scope 1 (direct emissions from owned/controlled sources), Scope 2 (indirect from purchased energy), and Scope 3 (all other indirect value chain emissions across 15 categories). UAE law requires Scope 1 and 2 as a minimum; Scope 3 reporting is encouraged and required where material.
Seven Greenhouse Gases
Inventories must cover all seven Kyoto Protocol gases where present: CO₂ (carbon dioxide), CH₄ (methane), N₂O (nitrous oxide), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons), SF₆ (sulphur hexafluoride), and NF₃ (nitrogen trifluoride). All expressed in tCO₂e.
Organisational Boundary
Organisations must select and document an approach for defining which operations are included: Equity Share (in proportion to equity interest) or Control (all operations over which the company has financial or operational control), applied consistently across all periods.
Operational Boundary Setting
Once the organisational boundary is established, the operational boundary defines which Scope 1, 2, and 3 emission sources fall within the inventory. All Scope 1 and 2 sources must be included; Scope 3 categories must be assessed for materiality.
Base Year and Recalculation
Organisations must establish a historical base year against which emissions performance is tracked. If structural changes (M&A, divestments, outsourcing) or methodology changes materially affect comparability, base year emissions must be recalculated using the Recalculation Protocol.
Five Accounting Principles
All GHG accounting under the standard must adhere to five principles: Relevance (representative sources selected), Completeness (all material sources covered), Consistency (comparable year-over-year), Accuracy (systematic error minimised), and Transparency (documented, auditable basis).
Scope 2 Market-Based and Location-Based
The 2015 Scope 2 Guidance (companion document) requires organisations to report Scope 2 emissions using both the location-based method (grid average emission factor) and the market-based method (contractual instruments such as RECs/GOs). UAE law currently requires location-based reporting using MOCCAE grid factors.
Inventory Quality Management
The standard requires documented quality assurance and quality control (QA/QC) procedures: source completeness checks, data management protocols, uncertainty assessment, and periodic external verification. Third-party verification is strongly recommended and legally required under UAE law.
Who must comply
Key dates
GHG Protocol initiative convened by WRI and WBCSD to develop a global corporate GHG accounting standard.
GHG Protocol Corporate Standard first edition published — establishing the Scope 1, 2, and 3 framework for the first time.
Revised Edition published — current version. Reflects learnings from 350+ companies involved in the pilot testing programme.
GHG Protocol Scope 3 Standard and Corporate Value Chain Standard published, providing detailed guidance on the 15 Scope 3 categories.
Scope 2 Guidance published, introducing the market-based and location-based dual-reporting requirement.
UAE Federal Decree-Law No. (11) of 2024 issued, explicitly mandating GHG Protocol-aligned quantification for all UAE businesses.
Major update to the GHG Protocol Corporate Standard underway, addressing Scope 3, market-based accounting, and alignment with ISSB/IFRS S2.
UAE compliance deadline: all designated entities must submit GHG Protocol-aligned, verified annual emissions data via MOCCAE IEQT.
Official Source Document
The full GHG Protocol Corporate Accounting and Reporting Standard (Revised Edition) is available as a free download from GHGProtocol.org. The website also hosts the Scope 3 Standard, Scope 2 Guidance, calculation tools, and sector-specific guidance documents.
We make compliance straightforward.
Most UAE businesses don't have an in-house sustainability team. twodegree acts as your technical partner — handling every step from emissions measurement to verified submission.
Book Free AssessmentWe apply the correct GHG Protocol organisational boundary method for your corporate structure, ensuring your inventory reflects the full extent of your legal obligations.
We classify and calculate all your Scope 1 direct emission sources — combustion, process emissions, and fugitive releases — using GHG Protocol-compliant methodologies.
We calculate your Scope 2 emissions using both location-based (MOCCAE UAE grid factor) and market-based approaches, meeting UAE regulatory requirements and international best practice.
We assess your Scope 3 value chain emissions across all 15 categories, identifying material sources and preparing disclosure-ready calculations where required by the law or your clients.
We document all quantification assumptions, emission factor sources, and data management procedures to the transparency standard required for third-party verification.
We ensure your GHG Protocol-aligned inventory meets the dual requirements of UAE Federal Decree-Law No. (11) of 2024 and any international frameworks your business participates in.