Renewable Energy markets
At least 42% of electricity must be supplied by renewable sources by 2030 to reach net zero emissions by midcentury -- the ambition of the Paris Agreement -- which requires doubling renewable power capacity. The private sector is key to this transition, yet some companies are limited in their ability to source renewable energy directly. Renewable energy markets allow these companies to purchase clean energy from their grid.
By purchasing clean energy -- whether directly or through renewable energy markets -- companies demonstrate a commitment to being more environmentally friendly, something clients, consumers + civil society are increasingly demanding.
Accelerating the clean energy transition
Companies should first reduce energy consumption and improve energy efficiency to the fullest extent possible. The next step is to help develop new local renewables and then to invest in high-quality renewable energy attribute certificates>> like Gold Standard Renewable Energy Labels.
These Renewable Energy Labels represent a megawatt-hour (MWh) of electricity generated and delivered to the electricity grid from a renewable source. They are issued on top of I-RECs, internationally recognised and reliable electricity attribute tracking certificates (RECs) and they follow Gold Standard principles to ensure that a buyer’s purchase results in real-world emissions reductions and the addition of new renewable energy capacity to the grid, helping to drive the clean energy transition.
PROJECTS APPLYING THE GOLD STANDARD RENEWABLE ENERGY LABEL MUST:
Add new renewable electricity to the grid: Electricity generated must come from power plants or devices that adhere to a strict age limit, and the finance generated through the sales of Renewable Energy Labels should go towards maintaining or expanding the power plant.
Contribute to the Sustainable Development Goals (SDGs): projects must respect the natural environment and contribute to three or more of the 17 UN SDGs.
Adhere to safeguarding principles: Strict safeguarding principles mitigate risk, maximise impact and ensure projects deliver what they set out to from the start.
Engage local stakeholders: Project design must be inclusive of all affected and interested stakeholders at different stages of development and implementation.
Robust Monitoring, Reporting, and Verification (MRV): Project impacts must be regularly and rigorously monitored and assured by an accredited third-party auditor and certified by SustainCERT to ensure ongoing quality of the project.
BEST PRACTICE RECOMMENDATIONS: for companies seeking to ensure the greatest positive impact in reducing emissions
REDUCE ENERGY USE
The first step for environmentally conscious businesses is to improve energy efficiency and reduce energy consumption wherever possible.
DEPLOY ON-SITE RENEWABLES
Through self-financing or leasing space to a developer, and purchase the renewable energy attribute certificates generated from these on-site power sources
HELP DEVELOP NEW LOCAL RENEWABLES
By negotiating Power Purchase Agreements (PPAs) and purchasing renewable energy attribute certificates generated via the associated PPAs
INVEST IN HIGH-QUALITY RENEWABLE ENERGY ATTRIBUTE CERTIFICATES
Such as those supporting new energy generation capacity and sustainable development; those with safeguards in place to verify claims made; those from projects which are at harmony with nature and communities
What buyers of Renewable Energy Labels can claim
- Contribution to SDG Target 7.2: By purchasing renewable energy attribute certificates with a Gold Standard label, you can claim to have made a contribution to SDG Target 7.2, representing a direct and quantifiable impact on increasing the share of renewable energy in the global energy mix, monitored, verified and certified Gold Standard.
- Reduction of your Scope 2 footprint: Eenewable energy attribute certificates with a Gold Standard label can be used toward claims for procurement of 100% renewable electricity and are recognized by GHG Protocol accounting and are applicable under RE100.
- Contributions to other SDGs - You may also describe the certified contributions to other Sustainable Development Goals that the project you supported has also delivered, which is unique among renewable energy market instruments.