# Our buyer asks for Scope 2 both location based and market based. What is the difference?

Canonical: https://senseible.earth/answers/buyer-asks-location-and-market-based-scope-2

Location based uses the average grid factor where you are, 0.710 kg CO2 per kWh in India. Market based uses what you contracted: green tariffs, RECs or PPAs, with a residual mix factor for the rest. Report both; without contracts, the two figures are similar.

## Location based

Total kWh times the national grid factor. Simple and always required.

## Market based

- kWh covered by valid contracts or certificates at their own factor.
- Remaining kWh at a residual mix factor if one is available, otherwise the grid factor, stated as such.

## Evidence

Keep REC retirement statements, green tariff bills or PPA invoices for the claimed kWh.

## What Senseible does here

Senseible reads bills, fuel invoices and production records into dated, fingerprinted records, so the figure you send a buyer can be traced to its documents.

- [Residual mix factor for India](https://senseible.earth/answers/residual-mix-factor-india-market-based-scope-2)
- [Green tariff vs RECs](https://senseible.earth/answers/green-tariff-vs-recs-cheaper-scope-2)
- [Renewable share for a buyer](https://senseible.earth/answers/renewable-electricity-percentage-for-buyer)

Sources: [GHG Protocol Scope 2 Guidance](https://ghgprotocol.org/scope-2-guidance), [CEA CO2 Baseline Database, version 21.0](https://cea.nic.in/cdm-co2-baseline-database/?lang=en)

Last reviewed 2026-10-22.