Bruce Hedman, Managing Director at Entropy Research, explains a carbon accounting methodology based on the Greenhouse Gas Protocol. This method considers emissions avoided by the grid based on marginal rather than average rates, favouring projects such as cogeneration (CHP) that produces electricity and heat on-site and reduces energy consumption from the grid. However, in its proposal for technology-neutral tax credits, the Treasury Department does not clarify whether such savings are recognized. The CHP Alliance stresses the importance of considering marginal emissions, highlighting that currently, natural gas CHP can offer great advantages over the electricity grid.