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Offsets  ·  5.1.1

Renewable Energy Certificates

Renewable Energy Certificates (RECs) — also called Guarantees of Origin (GOs) in Europe or Energy Attribute Certificates (EACs) globally — represent the environmental attributes of one MWh of electricity generated from a renewable source. RECs are the primary instrument for Scope 2 market-based accounting. The maturity pathway progresses from basic annual bundled procurement to sophisticated hourly matching strategies.

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Self-Assessment

Select where your organization currently operates and where you want to get to. There is no obligation to reach "Leading Org." — choose the target that is right for your business context and investment capacity.

📍 Current Level
🎯 Target Level
Select your current and target levels above to map your assessment on this initiative.
Fundamental
Market Standard
Above Average
Leading Org.

Technology

  • Utility-bundled RECs included automatically with green power program enrollment
  • Unbundled REC purchase from broker or registry (Green-e certified) to cover annual consumption

Process

  • Calculating annual Scope 2 market-based emissions baseline across all facilities
  • Understanding the difference between bundled and unbundled RECs for accounting purposes
  • Identifying which registries (WREGIS, PJM GATS, M-RETS, ERCOT) apply to each facility location

Financing

  • Unbundled REC spot market purchases at commodity prices ($1–5/MWh depending on source and vintage)
  • Internal sustainability budget funds initial REC purchases for reporting coverage

Technology

  • Fundamental Technologies +
  • Multi-year forward REC supply contract providing price certainty and vintage control
  • Location-specific RECs (same grid region as consumption) procured to reduce accounting risk
  • Green-e or equivalent third-party certified RECs ensuring additionality and environmental integrity

Process

  • Establishing a formal REC procurement policy aligned with GHG Protocol Scope 2 Guidance
  • Prioritizing RECs by quality criteria: recent vintage (within 2 years), same-grid, wind or solar preferred
  • Reporting Scope 2 market-based zero with REC backing in CDP, TCFD, and sustainability reports

Financing

  • Multi-year fixed-price REC contracts (3–5 year) providing budget predictability
  • Utility green tariff enrollment used where available to simplify procurement and billing

Technology

  • Market Standard Technologies +
  • Hourly Energy Attribute Certificates (EACs) enabling time-matched clean energy claims
  • REC procurement integrated with offsite PPA contracts for bundled attribute delivery
  • 24/7 carbon-free energy tracking platform (e.g., Google EnergyTag, WattTime) for hourly matching

Process

  • Transitioning from annual to hourly REC matching methodology per emerging GHG Protocol guidance
  • Aligning REC sourcing with locational marginal emissions — prioritizing procurement in high-carbon grid hours
  • Reporting 24/7 CFE matching score alongside 100% annual REC coverage in sustainability disclosures

Financing

  • Hourly EAC premium (~$5–20/MWh above commodity RECs) justified by credibility and differentiation value
  • Portfolio optimization across PPAs, utility tariffs, and spot RECs to minimize total Scope 2 cost

Technology

  • Above Average Technologies +
  • Fully matched 24/7 hourly CFE portfolio: PPAs, storage dispatch, and EAC instruments combined
  • Emissionality-weighted EAC procurement targeting highest-carbon grid hours and locations
  • Contribution to new renewable capacity via additionality-focused long-term PPA backed RECs

Process

  • Publishing verified 24/7 CFE score with third-party assurance in annual sustainability reporting
  • Advocating for strong hourly matching and additionality standards in GHG Protocol revision processes
  • Sharing 24/7 CFE methodology openly with peers and industry coalitions to raise market standards

Financing

  • Total Scope 2 procurement cost optimized across instruments and disclosed publicly for market transparency
  • Internal carbon price applied to all electricity decisions, creating enduring financial incentive for clean procurement

Related Pathways

← All Pathways 4.1.2 Carbon Certificates 4.2.1 Offset Strategy 2.1.3 Off-Site PPAs