How Energy Attribute Certificates Promote Renewables

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Renewable energy is critical for mitigating climate change and reducing our reliance on fossil fuels.

But how can businesses and organizations ensure that the energy they use is truly green?

Enter Energy Attribute Certificates (EACs).

These certificates represent proof that a certain amount of electricity was generated from a renewable energy source, such as wind or solar power.

By purchasing EACs, businesses and organizations can support renewable energy development and offset their carbon emissions.

In this article, we’ll explore what EACs are, why they matter, and how they can help build a more sustainable future.

What are Energy Attribute Certificates?

Energy Attribute Certificates (EACs), also known as Renewable Energy Certificates (RECs) or Guarantees of Origin (GOs), are tradable instruments that represent proof that a certain amount of electricity was generated from a renewable energy source.

So, what are EACs?

When renewable energy is generated and added to the grid, it becomes mixed with energy from other sources.

EACs are created by separating the environmental and social benefits associated with the renewable energy from the physical electricity itself.

Each EAC represents one megawatt-hour (MWh) of renewable energy generation, and can be bought and sold separately from the physical electricity.

How EACs are created and tracked

EACs are created by renewable energy generators, who can then sell them to energy suppliers, businesses, or individuals.

Each EAC is assigned a unique identification number and tracked through a central registry or tracking system.

This ensures that each certificate can only be sold once and that its environmental benefits are not double-counted.

RECs, GOs and I-RECs

There are several types of EACs, including Renewable Energy Certificates (RECs), Guarantees of Origin (GOs), and International Renewable Energy Certificates (I-RECs).

RECs are the most common type of EAC in the United States.

GOs are more prevalent in Europe.

I-RECs are used in international transactions and are designed to ensure that renewable energy generation is not double-counted across borders.

Each type of EAC has its own set of standards and regulations governing its creation and use.

Why are Energy Attribute Certificates important?

EACs play an important role in promoting renewable energy and mitigating climate change.

They support renewable energy development

By purchasing EACs, businesses and organizations provide a direct financial incentive for renewable energy developers to build new projects.

This, in turn, helps to increase the amount of renewable energy that is generated and added to the grid, reducing our reliance on fossil fuels and lowering greenhouse gas emissions.

Should businesses and organizations consider using EACs?

For businesses and organizations, purchasing EACs can have several advantages.

First, it allows them to support renewable energy without having to invest in their own renewable energy infrastructure.

This can be particularly beneficial for smaller organizations or those with limited resources.

Second, it can help them meet sustainability goals and demonstrate a commitment to environmental responsibility.

Finally, it can help them reduce their carbon footprint and mitigate the risks associated with climate change.

They can somehow help you meet sustainability goals

Many companies have set ambitious sustainability goals, such as achieving net-zero emissions or using 100% renewable energy.

EACs can be an important tool for helping these companies achieve their goals.

By purchasing EACs, companies can offset their carbon emissions and support the development of new renewable energy projects, bringing them closer to their sustainability targets.

Challenges with Energy Attribute Certificates

While EACs have several benefits, there are also some challenges associated with their use.

Lack of standardization and transparency

One of the challenges with EACs is that there is no standardization across different regions or types of certificates.

This can make it difficult for buyers to compare the environmental benefits associated with different certificates.

Additionally, there can be a lack of transparency around how certificates are created and tracked, which can make it difficult to ensure that they are legitimate and accurately represent the environmental benefits of renewable energy.

There are some criticisms…

Some critics argue that EACs are not an effective means of promoting renewable energy development.

They argue that by purchasing EACs, businesses and organizations are simply buying the environmental benefits associated with renewable energy, rather than actually contributing to the development of new projects.

Additionally, there are concerns that the market for EACs is too small and too fragmented to have a significant impact on renewable energy development.

But wait, they can be solved

To address these challenges, several initiatives have been proposed.

One proposal is to create a standard set of guidelines and principles for the creation and use of EACs, similar to the Greenhouse Gas Protocol for measuring and reporting emissions.

This would help to ensure that EACs are transparent, accurate, and comparable across different regions and types of certificates.

Another proposal is to create a centralized, global registry for EACs, which would make it easier for buyers to track and verify the environmental benefits associated with each certificate.

Finally, some advocates argue that EACs should be used in conjunction with other renewable energy strategies, such as direct investment in renewable energy infrastructure or power purchase agreements, to ensure that businesses and organizations are truly contributing to the development of new projects.

Examples of Energy Attribute Certificates in action

Despite the challenges associated with EACs, many companies and organizations are using them to support renewable energy and achieve sustainability goals.

The Googles and the Apples

Some companies and organizations are purchasing EACs to offset their carbon emissions and support renewable energy development.

For example, Google has been carbon-neutral since 2007 and achieved 100% renewable energy in 2017 through a combination of EACs and direct investment in renewable energy projects.

Apple also claims 100% renewable energy in its operations by putting renewables back into the grid to offset the fossil fuels it uses up, via EACs and supporting renewable energy projects.

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Summary

In summary, Energy Attribute Certificates (EACs) are a tool for promoting renewable energy development and supporting sustainability goals.

EACs provide a way for businesses and organizations to offset their carbon emissions and support the development of renewable energy projects.

Despite some challenges associated with their use, many companies and organizations have successfully used EACs to achieve their sustainability goals.

EACs are an important part of the overall strategy for promoting renewable energy development and mitigating climate change.

As businesses and organizations increasingly prioritize sustainability, EACs can provide a way to support renewable energy development and reduce carbon emissions.

At ClimateTechReview, we help match buyers and sellers of EACs globally.

If you are a project developer of renewable energy, you probably want to find out how you can sell your EACs here.

If you are a business or an organization that wants to offset your emissions by buying EACs, find out how you can buy them here.