Net-zero enterprise projects, therefore, require accurate progress reporting, openness to disclosure, and verification. Energy Attribute Certificates (EACs) have become crucial market instruments for proving that organizations and governments are using renewable power. EACs have an important function in decreasing emissions and enhancing international sustainability as they demonstrate that 1 MWh of renewable power has been produced and fed into the grid.
It is important to identify what EACs are and how useful it can be to monitor the net-zero targets, and at the same time consider the tools within frameworks such as CDP to embrace energy emissions reporting.
What Are Energy Attribute Certificates (EACs)?
Energy Attribute Certificates (EACs) are compliance tools that allow trading with the added environmental value of a certain amount of renewable electricity. One EAC corresponds to one MWh of renewable electricity; including from Wind, Solar & Hydro-power resources.
EACs can be purchased:
- Bundled: Alongside physical electricity.
- Unbundled: Separately from the actual electricity purchase.
These certificates ensure companies can support clean energy initiatives even if they do not consume renewable power directly. EAC systems vary by region:
- REGOs (Renewable Energy Guarantees of Origin) in the UK
- GOs (Guarantees of Origin) in Europe
- RECs (Renewable Energy Certificates) in the US
- I-RECs (International Renewable Energy Credits) across Latin America, Africa, and Asia
The global adoption of EACs standardizes renewable energy tracking, making them critical for meeting net-zero targets.
How Do EACs Support Net-Zero Goals?
EACs are useful for companies that want to report on their organisations’ renewable energy consumption and manage their Scope 2 emissions. Companies buy certificates equivalent to their energy consumption and can use the proceeds to retire the certificates, allowing their operation to claim ‘100% renewable.’
Here’s how EACs drive net-zero progress:
- Promote Renewable Energy Investments: By creating demand for certificates, EACs encourage more investment in clean energy projects like solar farms and wind turbines.
- Increase Accountability: EACs prevent double-counting and ensure companies can transparently report their sustainability efforts.
- Facilitate Sustainability Reporting: Businesses can use EACs to meet voluntary reporting standards like CDP (Carbon Disclosure Project), RE100, and mandatory frameworks such as Europe’s CSRD (Corporate Sustainability Reporting Directive).
In other words, EACs allow corporations to monitor and document their usage of REs to ensure their activities conform with established goals for combating climate change.
What Is CDP and Why Does It Matter?
What is CDP? CDP or the Carbon Disclosure Project is a worldwide project which provides singers and managers tools to measure and report climate change. CDP attracts companies of every kind, providing them with a voice and recognition of their desire to be sustainable as well as obtaining the trust of investors, stakeholders, and customers.
EACs are critical to CDP reporting since they support the company’s renewable energy statement. Companies really have to balance their total annual electricity consumption by the same amount of legitimate EACs to prove their consumption of renewable energy. This data is vital for the Scope 2 emissions reporting and improvement of the CDP score, As you may recall.
EACs in Action: Market and Regional Contributions
The chart below highlights the diversity of EAC sources across regions, showing the commissioning years, markets, and origins:
Assigned Volumes from Sources:
| Commissioning Year | Type | Market | Country of Origin | Source |
| 2017 | EAC | European Single Market | Spain | Solar |
| 2021 | EAC | European Single Market | Belgium | Wing |
| 1999 | Attestation | European Single Market | Spain | Solar, Wind |
| 2005 | Attestation | European Single Market | Norway | Hydropower |
| 2020 | EAC | European Single Market | Italy | Renewable |
This snapshot also shows how EACs cover different renewable energy technologies such as solar, wind and hydro energy. Germany, Spain, Belgium, and Norway are some of the main active roles coming from regions that allow businesses to source certificates globally.
Why Are EACs Reliable for Net-Zero Claims?
This is because EACs offer a very good track of the use of renewable energy because the records can be audited. Key benefits include:
- Preventing Double Counting: Once an EAC is retired, it cannot be resold, ensuring no overlap in renewable energy claims.
- Global Standardization: EACs offer a universal method for businesses to demonstrate renewable energy support, regardless of their location.
- Streamlined Reporting: Platforms can consolidate EAC data, helping companies simplify their portfolio management and meet compliance standards like CDP and RE100.
However, while EACs establish the generation of renewable energy, they do not quantify physical energy flow. Organizations should complement their EAC purchases with a focus on energy efficiency in order to achieve the greatest outcome.
Conclusion: EACs Are Key to Achieving Net-Zero
Energy Attribute Certificates are useful in helping organisations attain their net-zero objectives, because they provide assurance for renewable energy consumption and set a pace for investments in clean energy. Alongside frameworks such as CDP, they offer the solid approach to pursue sustainable objectives and to report.
While the pressure for increased accountability is on, the use of EACs will continue to be crucial for the decarbonisation of the globe and creating a cleaner, greener future.