Big Tech is at war over a “boring” accounting rule that could determine the future of the global energy grid. (Semafor)
Tech giants have divided into 2 camps over how to count their pollution. Amazon and Meta are fighting to keep the current system, which lets them offset dirty power use by buying cheap renewable credits elsewhere.
Meanwhile, Google is pushing for a radical overhaul that would force companies to prove they’re using clean energy at the exact time and place their data centers are running.
The debate centers on “Scope 2” emissions. Critics argue the current rules allow massive “greenwashing,” enabling a company to build a gas-guzzling data center in Virginia but claim it’s “zero carbon” by buying wind credits in Texas.
The nonprofit refereeing this fight (the Greenhouse Gas Protocol) is expected to decide early next year. If they side with Google, it could effectively ban these paper offsets, forcing Big Tech to pour billions into 24/7 local clean energy like nuclear and batteries to keep their climate pledges intact.