For businesses committed to sustainability and carbon reduction, Energy Attribute Certificates (EACs) play a crucial role in verifying renewable energy use and ensuring compliance with global standards. However, managing EACs effectively is often easier said than done. From tracking certificates to ensuring regulatory compliance and optimising trading strategies, many organisations struggle with complexities that can slow down their sustainability progress.

So, what’s your biggest challenge in managing EACs?

• Understanding the certification process
• Verifying certificates for compliance
• Managing EAC trading efficiently

Let’s break down these key challenges and explore how businesses can overcome them.

1. Understanding the Certification Process

The first hurdle many organisations face is navigating the intricate certification process for EACs. Different regions have varying rules and standards, with systems such as Guarantees of Origin (GO) in Europe, Renewable Energy Certificates (RECs) in North America, and International Renewable Energy Certificates (I-RECs) in other global markets. Each certificate type has unique eligibility requirements, issuance procedures, and expiration rules, making it difficult for businesses to ensure they are purchasing and retiring the right certificates for their sustainability goals.

Without a clear understanding of these systems, companies may struggle to make informed procurement decisions, leading to inefficiencies or even non-compliance with reporting frameworks such as the Greenhouse Gas Protocol or the CDP (formerly the Carbon Disclosure Project).

2. Verifying Certificates for Compliance

Another major challenge in EAC management is ensuring that purchased certificates are valid, traceable, and compliant with evolving regulatory frameworks. Double counting, where the same renewable energy certificate is claimed by multiple entities, remains a significant concern, potentially leading to reputational risks or regulatory penalties.

Additionally, organisations need to ensure that EACs align with their Scope 2 emissions reporting requirements under the Greenhouse Gas Protocol. A lack of proper verification methods can lead to inaccurate sustainability claims, undermining the credibility of corporate decarbonisation strategies.

3. Managing EAC Trading Efficiently

EAC markets are rapidly evolving, with growing demand and fluctuating prices making trading more complex. Companies often struggle with:

• Market volatility, where certificate prices shift due to supply and demand imbalances.
• Slow manual processes, which hinder the ability to seize trading opportunities.
• Limited access to market insights, preventing data-driven decision-making.

Inefficient trading can lead to higher costs, missed sustainability targets, and suboptimal procurement strategies. Without real-time market visibility, businesses may overpay for certificates or fail to secure the right volume to meet their energy needs.

Solution:

Navigating the complex certification landscape of Energy Attribute Certificates (EACs) requires a streamlined approach. Implementing digital tracking solutions and working with experienced sustainability advisors can help businesses better understand regional certification requirements and compliance obligations. By leveraging centralised online platforms, organisations can access all necessary certificate information in one place, ensuring clarity in procurement, validation, and reporting. This not only simplifies compliance but also reduces the risk of mismanagement, enabling businesses to make informed sustainability decisions with confidence.

Ensuring the integrity of EACs is equally critical, and digital platforms incorporating blockchain technology are revolutionising verification processes. Integrating EAC management into sustainability reporting tools allows businesses to seamlessly comply with Scope 2 accounting rules, ensuring accurate emissions reporting and reinforcing credibility in corporate sustainability commitments.

The trading landscape for EACs has also been transformed by digital marketplaces, making transactions more efficient and transparent. Platforms offer real-time pricing, automated transactions, and enhanced market visibility, helping businesses optimise procurement strategies while reducing costs. By integrating EAC procurement into broader energy management strategies, companies can ensure their renewable energy purchases align with long-term sustainability goals, improving market flexibility and securing a competitive edge in carbon-conscious industries.

The Future of EAC Management: A Digital-First Approach

Managing EACs shouldn’t be a headache, but traditional methods make it challenging. From certification complexities to compliance risks and inefficient trading, organisations face multiple hurdles that can slow down progress. However, the shift towards digital platforms and automation is making EAC management more accessible, transparent, and efficient.

By leveraging real-time tracking, integrated reporting, and digital marketplaces, businesses can take control of their renewable energy procurement and confidently meet their sustainability goals. With AFS Energy's expert guidance, organisations can transform their sustainability journey into a strategic asset, fostering long-term success and resilience in an ever-evolving business landscape.