According to GHG Protocol, Scope 2 emissions are indirect greenhouse gas emissions from the generation of purchased or acquired electricity, steam, heat, or cooling consumed by a company. These emissions occur at the facility where the energy is produced, not where it is used. The most common source is electricity, making Scope 2 highly relevant for businesses looking to reduce their carbon footprint. As companies face growing pressure to reduce their Scope 2 emissions, how they source and account for electricity is under more scrutiny than ever.
At the heart of corporate renewable energy claims are Energy Attribute Certificates (EACs) — a digital proof that 1MWh of electricity has been produced from a renewable source. It is also a tool used to demonstrate the use of renewable electricity and support emissions reduction goals. However, the landscape around EACs is changing fast. New expectations, evolving best practices, and increased attention to impact mean that what was acceptable a few years ago may no longer be enough today.
This blog aims to provide an updated understanding of EACs, outlining key considerations for making credible, effective, and future-proof choices in renewable electricity procurement.
EACs directly address a significant portion of a company's carbon footprint by reducing Scope 2 emissions, which are those associated with purchased electricity. To address this, most companies use EACs, which have become the standard tool to claim renewable electricity use and support emissions reduction goals. Each EAC represents 1 megawatt-hour (MWh) of renewable power. They can be bundled with electricity or bought separately (unbundled) and must be retired to support a valid claim. EACs are tied to specific renewable technologies, with eligible sources including hydro, wind, solar, biomass, and geothermal—each playing a vital role in the transition to low-carbon energy systems. While they serve a similar purpose, there are several distinct yet commonly used types of EACs:
As demand for renewable electricity grows, so does the scrutiny around how it is being sourced. Stakeholders are increasingly looking beyond basic compliance, expecting companies to choose high-quality EACs that reflect meaningful climate action. One key consideration is additionality—the idea that EAC purchases should help bring new renewable energy. While not all EACs guarantee this, many buyers nowadays favour options that at least support this outcome indirectly. Labels such as EKOenergy add credibility by ensuring that EACs are sourced from EKOenergy-labelled facilities that adhere to rigorous environmental and social sustainability standards. There are also different certificate types like the D-RECs, which are high-impact instruments that facilitate access to the EAC market for decentralised, off-grid renewable energy projects in developing regions. This empowers local entrepreneurs, supports the electrification of remote areas, reduces energy poverty, and delivers significant carbon benefits.
There is a growing interest in aligning EACs with energy use on an hourly basis—also known as hourly matching—to increase transparency and impact. The 24/7 Carbon-Free Electricity (CFE) approach offers a more accurate reflection of when and where clean energy is actually used, aligning better with real-time grid conditions. The technologies and platforms necessary for hourly matching are emerging, but widespread implementation faces challenges. Currently, this practice is largely limited to data centres and companies with substantial resources and the ability to capture very granular consumption data. Broader adoption will require further development and increased readiness among a wider range of clients and registries. Nevertheless, hourly matching represents a promising step towards deeper decarbonisation and system-level impact.
Core principles such as market boundaries (ensuring the EAC originates from the same market where the electricity is consumed), vintage (matching the time of energy generation with consumption), and technology type (understanding which renewable sources are recognised by different standards) remain essential for credible EAC use, as defined by frameworks like the GHG Protocol, Carbon Disclosure Project (CDP), and RE100. CDP is a disclosure platform that scores companies on the transparency and quality of their environmental reporting, and RE100 has specific criteria regarding eligible renewable energy technologies. However, interpretations and regulations are evolving, as can be seen by the ongoing reviews of the GHG Protocol and the recent RE100 Report highlighting the need to stay up to date.
EACs are a valuable tool, but they work best as part of a broader climate action strategy. Combining EACs with energy efficiency, direct renewable procurement, and efforts to reduce Scopes 1 and 3 emissions creates a more holistic approach. Over time, thoughtful EAC procurement can help shape demand for renewable electricity and contribute to the wider energy transition, turning short-term action into long-term impact.
When purchasing EACs, look beyond the costs:
As expectations around renewable electricity sourcing rise, it's clear that quality, granularity, and adherence to evolving standards matter more than ever. EACs remain a powerful tool for reducing scope 2 emissions—but only when used thoughtfully and transparently. By applying updated best practices, companies can make stronger, more defensible climate claims and play a meaningful role in accelerating the energy transition.
South Pole strongly recommends that corporations keep up-to-date with changing guidelines and regulations around the use of EACs. Our dedicated EAC team can help you navigate the evolving EAC market complexities and source certificates from every EAC market globally. External sources such as the RE100 criteria, the GHG Protocol’s ongoing consultation process, and findings from the scope 2 survey provide additional context.
Where is your EAC procurement strategy currently at? Where do you want to get to? Contact us today for expert advice and support on EACs.
