In the global drive towards net zero emissions, Energy Attribute Certificates (EACs) have become essential instruments, enabling organisations to verify their renewable energy consumption and effectively reduce Scope 2 emissions. By providing credible evidence of renewable energy generation, EACs support the shift towards more sustainable energy practices, aligning corporate operations with broader climate objectives.

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What Are Energy Attribute Certificates (EACs)?

EACs are tradable certificates that represent the environmental attributes of one megawatt-hour (MWh) of electricity generated from renewable sources. They act as a mechanism to track and verify the production and consumption of green energy, ensuring that organisations can legitimately claim their use of renewable electricity. Without EACs, multiple parties might claim the same unit of renewable electricity, resulting in double counting and undermining the integrity of renewable energy markets.

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Types of EACs Around the World

‍The terminology and implementation of EACs differ by region:

• Renewable Energy Certificates (RECs): Commonly used in the United States and Canada, RECs certify that electricity has been generated from renewable sources.
• Guarantees of Origin (GOs): Used across Europe, GOs provide proof of the renewable origin of electricity, helping consumers verify their energy source.
• International Renewable Energy Certificates (I-RECs): Employed in countries without established EAC systems, I-RECs offer a standardised approach to tracking renewable electricity consumption globally.

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The Role of EACs in Meeting Net Zero Targets

‍For organisations striving to reach net zero, tackling Scope 2 emissions—those linked to purchased electricity—is critical. By purchasing EACs equivalent to their electricity usage, companies can credibly claim to be using renewable energy, thereby reducing their reported Scope 2 emissions. This not only supports compliance with regulatory requirements but also demonstrates a clear and measurable commitment to sustainability.

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Critiques and Considerations

‍While EACs play a valuable role in encouraging renewable energy adoption, they are not without criticism. Some argue that acquiring EACs does not necessarily drive the development of new renewable energy projects, potentially enabling companies to overstate their emissions reductions. This highlights the importance of embedding EAC procurement within a broader sustainability strategy—one that includes direct investment in new renewable infrastructure and improved energy efficiency.

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Energy Attribute Certificates are an important component of the transition towards a net zero future, enabling organisations to verify and report their renewable energy usage transparently. When implemented as part of a wider strategy, EACs can bridge the gap to more sustainable operations, promoting greater accountability in climate reporting. However, to maximise their impact, EACs should be integrated with direct action—such as investing in renewable generation and reducing total energy consumption—to drive meaningful and lasting change.