As businesses strive to embrace renewable energy and reduce their carbon footprints, the ability to substantiate these efforts has become increasingly important. Stakeholders—including regulators, investors, and customers—demand transparency in energy usage and sustainability claims.

Energy Attribute Certificates (EACs) lie at the heart of this transparency. These certificates ensure that every megawatt-hour (MWh) of renewable energy a company claims is both traceable and verifiable. But what makes EACs so indispensable? How do they work, and what value do they bring to businesses?

In this article, we delve into the lifecycle of an EAC, explaining how it builds trust, supports compliance, and accelerates sustainability goals.

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What Are Energy Attribute Certificates (EACs)?

EACs are digital certificates that verify the renewable origin of energy. For every MWh of renewable electricity generated, an EAC is issued, enabling businesses to match their energy consumption with clean energy sources.

Why EACs Matter:

• Transparency: EACs document the source and attributes of renewable energy.
• Simplified Reporting: They ensure businesses meet regulatory and stakeholder demands with ease.
• Renewable Energy Investment: EACs monetise the environmental benefits of renewable energy, encouraging further investment.

Types of EACs Worldwide:
EACs are recognised globally, though their names and systems vary by region:

• Guarantees of Origin (GOs): Europe.
• Renewable Energy Certificates (RECs): North America.
• I-RECs: Regions such as Asia and the Middle East.

Regardless of the system, all EACs serve the same purpose—providing businesses with verifiable proof that their energy consumption comes from renewable sources.

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The Lifecycle of an EAC

The journey of an EAC showcases why these certificates are so reliable. Here’s how the process unfolds:

1. Generation
   • Each MWh of renewable electricity generated by wind farms, solar plants, or hydroelectric facilities creates a corresponding EAC.
   • The certificate includes essential details such as the energy type, generation location, and date.
2. Registration
   • The certificate is recorded in a secure database, such as the European Energy Certificate System (EECS) for GOs or the North American Renewable Energy Registry (NAR).
   • This step ensures traceability and prevents double-counting.
3. Transaction
   • Businesses purchase EACs independently of the physical electricity.
   • For example, a company can procure EACs to match its energy use with renewable sources, even if its operations rely on grid electricity.
4. Cancellation
   • Once the renewable energy associated with an EAC is used, the certificate is “cancelled” in the registry.
   • This step guarantees the integrity of the system by ensuring the certificate cannot be resold.

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EACs in Action—Building Trust Through Transparency

For businesses, EACs are more than mere compliance tools; they are essential for establishing trust and credibility.

1. Proving Renewable Energy Use
   • EACs offer third-party verification of renewable energy procurement.
   • This proof reassures stakeholders—from customers to regulators—that a company’s sustainability claims are genuine.
2. Simplifying Sustainability Reporting
   • Frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and the Greenhouse Gas Protocol require companies to disclose renewable energy usage.
   • EACs streamline this process by providing clear, verifiable data.
3. Driving Decarbonisation Goals
   • By purchasing EACs, businesses support renewable energy producers, creating a ripple effect that accelerates global decarbonisation.
   • Example: In 2022, European companies used GOs to account for 867 TWh of electricity consumption, demonstrating how EACs help industries transition to cleaner energy.

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EACs and Regulatory Compliance

As regulations surrounding carbon reporting and renewable energy usage become increasingly stringent, EACs ensure businesses remain compliant with evolving requirements.

How EACs Support Compliance:

• Documented Proof: They provide verifiable evidence for sustainability reporting frameworks, such as the Greenhouse Gas Protocol.
• Renewable Energy Mandates: EACs help businesses meet mandatory renewable energy quotas in regulated regions.
• ESG Alignment: By aligning with environmental, social, and governance (ESG) criteria, EACs boost investor confidence.

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Energy Attribute Certificates (EACs) are pivotal in ensuring transparency, accountability, and progress towards sustainability goals. By adopting EACs, businesses can confidently demonstrate their renewable energy commitments, foster trust, and contribute to global decarbonisation efforts.

With AFS Energy’s expert guidance, your organisation can transform its sustainability journey into a strategic advantage, achieving long-term success and resilience in an ever-evolving business environment.