Energy Attribute Certificates: A Practical Guide

With more than 60% of consumers asking for transparent energy sourcing and regulators tightening climate disclosure requirements, companies are increasingly relying on Energy Attribute Certificates (EACs) to meet their sustainability goals in an efficient and cost-effective way. The scale of corporate demand is striking: members of the global RE100 initiative together consume over 380 TWh of electricity each year, enough to place them among the world’s top ten electricity users. This showcases the powerful role that businesses play in driving the transition to clean energy [1]. At the same time, the United Nations’ 24/7 Carbon-Free Energy Compact reflects the rising expectation that companies not only use renewable power but also align their consumption with clean generation in real time [2]. In this context, EACs have become indispensable, offering transparency, flexibility, and credibility to corporate renewable energy claims.

 

What Are Energy Attribute Certificates (EACs)?

Energy Attribute Certificates are market-based instruments that represent the environmental attributes of 1 megawatt-hour (MWh) of renewable electricity generated. When renewable energy from wind, solar, or water is produced, an EAC is issued to certify its clean origin. These certificates can then be purchased, traded, or retired, allowing companies to validate their renewable energy use.

Different regions have developed their own systems: in the United States, Renewable Energy Certificates (RECs) serve this purpose, with the U.S. Environmental Protection Agency defining them as “the currency of renewable electricity” that conveys information about generation source and emissions [3]. In the European Union, Guarantees of Origin (GOs) are mandated under the Renewable Energy Directive as proof of renewable consumption [4]. Meanwhile, in emerging markets, the International Renewable Energy Certificate (I-REC) framework provides a standardized, globally recognized system [5].

Different type of EACs worldwide
 

How EACs provide a verifiable claim for renewable energy use

 

By holding EACs, companies gain a verifiable claim to renewable energy use, even when they cannot directly access clean electricity from their grids. This makes EACs the backbone of corporate sustainability reporting and a key mechanism for reducing Scope 2 emissions.

Why Are EACs Important for Sustainability?

  1. Facilitating Access to Renewable Energy

Not every company can install on-site renewable infrastructure due to space, cost, or geographic limitations. EACs offer a market-based solution, enabling organizations to support renewable generation indirectly and claim renewable usage regardless of location. This broadens access to clean energy for companies of all sizes and sectors [6].

  1.  Supporting the Renewable Energy Market

Purchasing EACs sends a demand signal that supports renewable energy developers. The International Renewable Energy Agency notes that corporate sourcing of renewable electricity, much of it enabled by certificates is a growing force in financing new capacity worldwide [5]. Increased demand for EACs helps accelerate investments in solar farms, wind parks, and other projects, strengthening the global transition away from fossil fuels.

  1.  Meeting Climate Pledges and Regulatory Requirements

Governments and regulators are increasingly requiring proof of renewable energy usage. In the EU, GOs are the legal basis for renewable energy disclosure [4], while in the U.S., RECs are used in renewable portfolio standards and voluntary green power programs [3]. By using EACs, companies can credibly report progress on science-based targets, climate pledges, and net-zero commitments.

  1. Tracking and Reporting Energy Use

Transparency is critical in sustainability reporting. EACs provide an auditable trail of renewable electricity consumption, ensuring that companies can demonstrate compliance with frameworks such as the Greenhouse Gas Protocol [7]. This verifiability helps organizations maintain credibility with investors, customers, and regulators and can also be used for their broader Energy, Social, and Governance ESG Reporting.

  1. Reducing Scope 2 Emissions

Scope 2 emissions refer to the indirect greenhouse gas emissions from the consumption of purchased electricity, steam, or heat. By purchasing EACs, companies can lower their Scope 2 emissions, which is essential for reaching net-zero carbon goals as this legal backing demonstrates that the company’s grid usage is backed by genuine renewable generation. This reduction is a key element in aligning business practices with science-based targets that aim to limit global temperature rises to 1.5°C [7].

  1. Ensuring “Additionality”

The concept of “additionality” emphasizes that purchasing EACs should ideally stimulate new renewable projects, not just redistribute existing supply. When EACs are tied to new or financially dependent renewable developments, they contribute more directly to emissions reductions [8]. Ensuring additionality strengthens the credibility and impact of corporate renewable energy claims.

Challenges in Managing EACs

Despite their benefits, EACs also present challenges. Unbundled certificates often lack time and location granularity, which can limit their ability to reflect real-time renewable consumption [9]. Some systems issue certificates only on an annual basis, which makes it difficult for companies to prove 24/7 carbon-free operation [10]. Furthermore, governance issues such as the 2023 suspension of Icelandic GO exports due to double-claim risks highlight the need for careful oversight [11].

Managing EACs across multiple markets can also be resource-intensive. Companies must ensure proper procurement, retirement, and regulatory compliance, all while navigating complex regional differences (RECs in the U.S., GOs in Europe, I-RECs in emerging markets). Without specialized tools, the process can become time-consuming and prone to errors.

How Spritju Simplifies the EAC Journey

This is where platforms like Spritju can add real value. By simplifying procurement, ensuring compliance, and providing transparent reporting, Spritju helps companies overcome the common challenges in managing EAC portfolios. Its intuitive dashboard consolidates procurement and tracking, reducing administrative troubles and minimizing the risk of double-counting.

For organizations aiming to move beyond basic compliance, Spritju also supports customized renewable energy strategies, whether targeting 100% renewable electricity, aligning with net-zero commitments, or preparing for 24/7 carbon-free energy matching. By combining expertise with technology, Spritju empowers companies to turn EACs from a compliance necessity into a strategic advantage.

Energy Attribute Certificates are a cornerstone of corporate sustainability. They allow companies to access renewable energy flexibly, support clean energy growth, and credibly reduce Scope 2 emissions. However, their limitations such as verification challenges and lack of granularity make it essential for companies to manage them carefully.

With specialized platforms like Spritju, businesses can navigate these complexities more effectively, ensuring that their EAC purchases deliver both compliance and real impact. In today’s fast-changing energy landscape, leveraging EACs strategically is not only efficient and cost-effective, it is essential for staying ahead in the global sustainability transition.

We hope you found this newsletter insightful! Stay ahead of the latest energy policy updates, EAC market trends, and industry innovations by subscribing to our bi-weekly newsletter and following Spritju on LinkedIn. Get exclusive insights, expert analysis, and real-time market updates delivered straight to you. Need tailored solutions for your clean energy strategy? Leave a comment or visit www.spritju.com to learn more!

 

REFERENCES

  1. International Energy Agency (IEA). Methodology to Assess the System Value of Different Corporate Procurement Strategies in Developing Economies,IEA,2022.https://www.iea.org/articles/methodology-to-assess-the-system-value-of-different-corporate-procurement-strategies-in-developing-economies
  2. United Nations.  24/7 Carbon-Free Energy Compact. UN Energy, 2021.
    https://www.un.org/en/energy-compacts/page/compact-247-carbon-free-energy
  3. U.S. Environmental Protection Agency (EPA). Energy Attribute Certificates (EACs), Green Power Partnership, 2023. https://www.epa.gov/system/files/documents/2024-02/energy_attribute_certificates.pdf
  4. European Commission. Renewable Energy Directive (EU RED II), 2018/2001/EU. https://eur-lex.europa.eu/eli/dir/2018/2001/oj/eng
  5. International Renewable Energy Agency (IRENA). Corporate Sourcing of Renewables: Market and Industry Trends. IRENA, 2018.
    https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2018/May/IRENA_RE_Jobs_Annual_Review_2018.pdf
  6. World Bank. Scaling Up Renewable Energy in Emerging Markets: The Role of Corporate Buyers. World Bank, 2020.
    https://documents1.worldbank.org/curated/en/860921627387556056/pdf/Emerging-Market-Green-Bonds-Report-2020-On-the-Road-to-Green-Recovery.pdf
  7. World Resources Institute (WRI). GHG Protocol Scope 2 Guidance, 2023 edition. https://www.wri.org/initiatives/greenhouse-gas-protocol
  8. Lauber, A. et al. The Contribution of Corporate Initiatives to Global Renewable Electricity Deployment. Nature Communications, 13, 6454 (2022). https://www.nature.com/articles/s41467-022-34051-7
  9. von der Assen, S. et al. Quantitative Evaluation of Large Corporate Climate Action Initiatives. Nature Communications, 14, 3000 (2023). https://www.nature.com/articles/s41467-023-41310-1
  10. U.S. Environmental Protection Agency (EPA). 24/7 Hourly Matching of Electricity. EPA, 2023.
    https://www.epa.gov/green-power-markets/market-analysis
  11. Association of Issuing Bodies (AIB). Press Release: Landsnet (Iceland) GO Exports Suspension, 27 April 2023. https://www.aib-net.org/

About the Author

Tatiana Nanette Tongwa
Selin Turman
Ahmad Karnama

Post a comment