In today's accelerating energy transition and ambitious corporate sustainability landscape, Energy Attribute Certificates (EACs) are fundamental for companies committed to scope 2 emission reduction and authentic renewable energy claims. Yet, the efficacy of EACs varies. By understanding crucial quality factors and leveraging additional certification labels such as Green-e and EKOenergy, businesses can strategically enhance their energy procurement, ensuring more impactful and credible scope 2 emissions reporting and alignment with leading frameworks such as RE100.
This blog explores how prioritising quality in EAC procurement can strengthen your company's sustainability journey.
For many, EACs are a straightforward commodity. Yet, a growing awareness of their nuances has led to the emergence of specific quality labels. These include important certifications such as Green-e and EKOenergy.
These labels are crucial for superior EACs because they provide additional layers of verification and assurance beyond standard market practices. Importantly, both Green-e and EKOenergy are explicitly recognised and encouraged by RE100, the global corporate renewable electricity initiative. Opting for EACs with these labels demonstrates a commitment to best practice and robust environmental and social stewardship.
EKOenergy is an international non-profit ecolabel for renewable electricity, heating, cooling and gas. What sets EKOenergy apart is its commitment to driving tangible progress in the renewable energy sector by funding new community projects in low- and middle-income countries. For every EAC carrying the EKOenergy label, EUR 0.10 is directed to the EKOenergy Climate Fund. To date, EKOenergy buyers have contributed over EUR 9 million, enabling the creation of 133 projects worldwide. Choosing EACs with the EKOenergy label goes beyond making a renewable energy claim: it means actively supporting a just transition in communities most affected by climate change. This support translates into tangible results through initiatives such as:
Green-e is North America's leading certification program for renewable energy and greenhouse gas emission reductions. While it originated in North America, its principles of transparency and consumer protection are globally recognised and highly valued. Green-e certification provides:
Investing in high-quality EACs goes beyond mere compliance; it enhances the integrity and impact of your renewable energy strategy.
One of the most fundamental principles of EACs is to prevent double claiming. This occurs when more than one entity claims the environmental benefits from the same unit of renewable electricity. Quality labels and robust EAC procurement ensure that each unit of renewable energy is claimed only once, safeguarding the integrity of your environmental declarations and the wider market.
The age, or commissioning date, of the renewable energy facility that generates the electricity matters. Sourcing EACs from newer renewable energy facilities is vital for driving the development of new renewable capacity. This ensures your purchases contribute directly to expanding clean energy infrastructure, rather than simply accounting for existing generation. RE100's latest technical criteria, for example, emphasise a 15-year age limit for eligible renewable electricity devices, highlighting the industry's focus on additionality.
While all renewable energy technologies offer environmental benefits over fossil fuels, their overall environmental impacts can vary. For instance, wind and solar power generally have lower lifecycle impacts than some large-scale hydro or biomass projects, which might involve significant land use changes or specific emissions profiles. EKOenergy and Green-e labels incorporate criteria that consider these broader environmental impacts, providing greater assurance about the sustainability credentials of the underlying electricity generation.
Choosing to prioritise quality in your EAC purchases and portfolio offers distinct advantages:
Understanding these quality factors empowers you to ask more targeted questions about your EACs. This leads to more informed purchasing choices that truly align with your environmental objectives and risk appetite.
Purchasing higher-quality EACs, particularly those with recognised labels like Green-e and EKOenergy, significantly strengthens the credibility of your renewable energy claims. It signals to stakeholders, investors and customers that your company is committed to robust and impactful sustainability practices.
An impactful EAC portfolio allows you to position as a leader in your industry. The labels are a way to show strategic leadership and forward-thinking mindset. For example, the clean energy projects EKOenergy finances contribute to the UN's Sustainable Development Goals thorough their Climate Fund (Source: EKOenergy) .
Focusing on the quality of your EAC portfolio is more than a technical detail; it's a strategic move for stronger sustainability claims. By understanding the nuances discussed, you'll be better equipped to:
Ultimately, prioritising quality in your EAC procurement decisions or EAC portfolio enhances the integrity, impact and credibility of your corporate renewable energy journey. Engage with us to explore how these leading labels can elevate your next EAC procurement decision.
Connect with our experts to discover how Green-e and EKOenergy certified EACs can maximise your impact and strengthen your Scope 2 emissions reduction efforts.
