RE Hourly Matching Institute Offers Solutions to the Updated GHG Protocol

D-Sharing Co., Ltd, (Shinagawa-ku, Tokyo, CEO: Naoki Sakai) established the RE Hourly Matching Institute on April 1, 2024, and initiated advisory services for bridging to Japan and Asian Countries.

The GHG Protocol is working for full update of Scope 1, 2, and 3. In particular, the application of the Hourly Matching rule in Scope 2 is expected to have a significant impact on corporate reporting, carbon credit trading, and ultimately electricity market and system reform in Japan and other Asian countries.

Since 2017, D-Sharing has been working on Hourly Matching and has obtained four related patents in 2023, establishing the following technologies for the precise calculation, evaluation, and reporting of corporate CO2 emissions (avoided) and social implementation of trading systems.

1. Calculation of actual half-hourly CO2 emission factors for each of the nation's 10 power-grids using an original algorithm and prediction by AI, in anticipation of the location standards in the new SCOPE2 guidance for the GHG protocol to be updated.
2. Calculation of CO2 emissions of customers using the above time-of-day emission factors for each power transmission and distribution network, and quantitative evaluation and reporting of their contribution to CO2 emission reductions using proprietary patented technology
3. Accurate calculation of net CO2 emissions of renewable and low-carbon thermal power plants (owners of on-site and off-site power plants) in accordance with the revised SCOPE2 Guidance, and quantitative evaluation and reporting of their CO2 emission avoidance efforts based on our proprietary patented technology
4. Quantitative evaluation and reporting of the leveling effect (ΔCO2) of the CO2 emission factor of the power grid by recharging and discharging storage batteries.
5. Quantitative evaluation and reporting of the contribution to CO2 emission reduction by daytime recharging of electric vehicles (EVs) and provision of zero-carbon drive services
6. Establishment of a virtual dual grid through mutual time-shift and hourly matching between renewable energy power plants and consumers within the same grid.
7. Development of the carbon credit market by establishing a commodity relative trading method for time-stamped renewable energy certificates.
8. Trading method focusing on additionality (renewable energy attributes) expected to be included in the new SCOPE2 guidance

Since 2018, D-Sharing has conducted the following social pilot project pilot projects using the above seven technologies as the project of the Ministry of the Environment, the Government of Japan.

1. Daytime time-shift nudge pilot project of electricity consumption by general consumers
2. Daytime shift (daytime charging) nudge pilot project of basic, route, and destination charging for EV owners
3. Pilot project of night time shift nudging of electricity generation (discharge) by consumers who own (contract with) on-site and off-site renewable energy generation and storage battery facilities
4. GX community nudge pilot project to promote simultaneous time sharing of renewable energy values within a community
5. Pilot project of Hourly Matching trading of renewable energy certificates (futures and physical commodities trading)
6. Improvement of WTP and pilot project of trading nudges for renewable energy certificates to ensure additionality

In 2023, we joined the UN 24/7C and the European Energy Tag, leading the Hourly Matching methodologies, and analyze applicability to Japan and Asia. We are also actively involved in rule setting, including the incorporation of our proprietary technologies.

We are also involved in partnerships and collaborative activities with Asian countries in cooperation with international organizations such as the Asian Development Bank Institute.

With such experiences and own-technologies, we offer integrated and comprehensive advisory services, including the following, to study the impact of the GHG Protocol revision on various areas, such as corporate disclosure and the impact on Japan regarding carbon credit transactions, as well as measures to respond to such issues.

1. Preparation of corporate and municipal environmental reports in line with the revised SCOPE2 guidance
2. Support for introducing the Hourly Matching method to electric power companies, carbon credit trading companies, etc
3. Support for public organizations on the latest trends of the GHG Protocol revision and its impact on various systems and policies in Japan, which will continue to be discussed over the next several years.

We can provide advisory services in both Japanese and English, in both Japan and the United States. Please feel free to contact us.