Navigating RECs:
A Deep Dive into the Problems and Opportunities of Renewable Energy Certificates

Ever more companies are setting ambitious climate targets which involve substantial reductions of direct and indirect emissions. One of the low-hanging fruits for most companies is dealing with emissions in scope 2 by shifting to renewable energy sources. A popular way of doing that is acquiring Renewable Energy Certificates (RECs) or so-called Guarantees of Origin (GOs) where companies theoretically buy the right to claim a certain amount of renewable energy produced elsewhere by a power supplier.

In theory this method makes sense and is recognized in the Greenhouse Gas Protocol’s Corporate Standard and Scope 2 Guidance. However, RECs and GOs have been the subject of much criticism and scrutiny with regards to their actual climate effect or lack thereof. One of the main problems is that the certificates do not necessarily automatically guarantee an extra production of renewable energy. Sometimes the renewable energy projects that companies invest in – and for which they receive RECs – are already publicly funded and would have been completed without the corporate funding.

Green Transition Denmark has been particularly vocal about the inefficiency of the European REC market, and they are supported by CONCITO, Greenpeace and a number of other organisations. 

The REC market is complex and the guidance complicated, but for some companies RECs seem like the only option to secure substantial reductions in scope 2 (and scope 3 for their suppliers). So how do companies navigate this? And is there any alternative?

In this meeting we will dive into the problems and look at possible solutions, for example Power Purchase Agreements (PPAs).

Participation criteria

This event is for representatives of Global Compact Network Denmark member Companies and members of our SBTi peer learning group.

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NB! Maximum one participant per company.