The role of EAC in your decarbonization journey
Business decarbonization has become a critical priority in the fight against climate change. As energy consumers, companies have a key role in reducing greenhouse gas emissions by adopting sustainable practices. One of the essential tools to achieve this is the use of Energy Attribute Certificates (EACs).
If you want to learn more about EACs, how they can help you minimize your carbon footprint, and how to implement an effective decarbonization strategy, you’re in the right place.
- What are EACs ?
- How do EACs play a role in business decarbonization?
- How to integrate EACs into your decarbonization strategy?
What are EACs?
1. Definition and explanation of Energy Attribute Certificates (EACs)
An Energy Attribute Certificate (EAC) is a legal tracking instrument that certifies that the electricity consumed by an entity (a particular consumer or an organization) is sourced from renewable energy. One certificate represents one megawatt-hour (MWh) of renewable energy generated and fed into the electricity grid.
The possession of an EAC generated by a renewable energy installation—whether wind, solar, hydro, or biomass—gives its holder the right to claim the use of green energy and benefit from its environmental advantages.
2. What are the different types of EACs?
Depending on the region and local regulations, several types of Energy Attribute Certificates exist:
- RECs (Renewable Energy Certificates) in the United States
- GOs (Guarantees of Origin) in Europe
- I-RECs (International Renewable Energy Certificates), recognized in various countries in Asia, Africa, the Middle East, and Latin America, I-RECs provide a standardized international mechanism to certify renewable energy consumption globally.
Regardless of the format and the country of issuance, an EAC aligns with international carbon accounting standards, enabling organizations to meet their renewable energy consumption goals.
How do EACs play a role in business decarbonization?
Acquiring EACs meets the Scope 2 requirements of the GHG Protocol. By certifying the use of renewable energy sources, companies demonstrate their commitment to energy transition and carbon reduction. EACs create a virtuous cycle, both directly and indirectly:
- Direct reduction of greenhouse gas emissions: By purchasing EACs, companies reduce their carbon footprint by offsetting their energy consumption with renewable energy.
- Incentive for innovation: The growing demand for EACs drives investments in renewable energy infrastructure, fostering innovation and the development of new technologies.
- Reputation enhancement: Companies that implement a decarbonization strategy through EAC purchases improve their brand image and showcase their commitment to sustainability and environmental responsibility.
How to integrate EACs into your decarbonization strategy?
1. Steps and guidance on incorporating EACs into a company’s decarbonization efforts
The acquisition of EACs should result from strategic planning. Here are key points to consider for an effective decarbonization plan:
- Assessment of Energy Needs: Start by evaluating your company’s energy consumption and identifying carbon emission sources.
- Setting Objectives: Establish clear goals for emission reductions and the integration of renewable energies into your overall strategy.
- Selection of Appropriate EAC Types: Choose the EACs that best fit your needs and objectives, such as RECs for American companies or GOs for those in Europe.
- Partnership with Certified Suppliers: Collaborate with certified renewable energy suppliers to ensure the authenticity and traceability of EACs.
- Monitoring and Reporting: Implement a system for tracking and reporting the impact of EACs on your carbon emissions and communicate progress to stakeholders.
2. Choosing the right types of EACs based on business needs and objectives
Selecting EACs depends on several factors, including:
- Energy Source: Choose EACs from specific renewable sources that align with your values and brand image.
- Geographical Origin of Electricity: Consider where the renewable energy is produced.
- Production Technology: The type of technology used to generate the renewable energy.
- Local Regulations: Ensure the chosen EACs comply with local and international regulations.
- Budget: Evaluate the costs associated with different types of EACs and incorporate them into your decarbonization budget.
3. Potential challenges and how to overcome them
Acquiring EACs is a significant decision. If you aim to implement a decarbonization strategy within your organization, consider the following points:
- Administrative Complexity: Managing an EAC portfolio can be complex. It is advisable to work with experts or specialized consultants in this field.
- Credibility and Traceability: Ensure that the EACs are traceable and verifiable to avoid accusations of greenwashing and potential negative impacts on your brand image.
- Cost: Initial costs may be high, but the long-term benefits in terms of emission reduction and reputation enhancement can outweigh these expenses.
By integrating EACs into their emission reduction strategies, companies actively reduce their carbon footprint and support the development of renewable energy at the expense of fossil fuels. Despite potential challenges, a well-planned action plan and the support of professionals in acquiring your EAC portfolio will help you achieve your environmental goals.
As a turnkey solution provider, Nvalue supports its clients throughout the entire EAC procurement process, from acquisition to validation, including certification, cancellation, and documentation.
Your commitment to renewable energy starts here with Nvalue. For any information request or to get a quote, contact us today.