Renewable Energy Credits.

A Carbon Offset is a way to compensate for greenhouse gas emissions by funding an equivalent amount of carbon dioxide (CO2) savings elsewhere. The concept is rooted in the idea that the damage caused by emissions can be balanced by reducing emissions or sequestering carbon elsewhere while actively working to decarbonize your own operations or products.

1 Offset = 1 metric ton of emissions avoided, reduced, or removed from our atmosphere (also referred to as green house gas (GHG) emissions).

Carbon credits and carbon offsets are the same thing, and may also be called VERs (verified emissions reductions). Many companies want to show their environmental accountability commitment, and offsets are another tool to help take control to deliver climate impact. 

Many organizations are trying to reduce or eliminate their carbon footprint. You can purchase GHG emissions reductions through Offsets. Offsets are subtracted to determine net CO2 emissions. Offsets must be real, permanent, and verified. They must be used to offset direct or indirect GHG emissions, and can be used to meet voluntary GHG reduction goals.

Carbon Offsets might be attractive if you are wanting to market an emissions-free product, for example. Tracking and retiring the environmental attribute is required. Offsets can only be used once—which creates demand for more Carbon offset projects.

Your electricity usage generates emissions—both from your direct and indirect use. Direct emissions are associated with electric energy you produce (these are known as Scope 1 emissions). Indirect emissions are associated with the energy you purchase from others, such as your utility (which are Scope 2), and finally there are emissions associated with your purchases from your supply chain and business activities (such as, the emissions associated with what you buy from your suppliers, or your own business travel) (these emissions are Scope 3). 

Typically, it is best practice to address your scope 2 emissions with EACs/RECs and Scope 1 and 3 with Carbon Offsets.

Renewable energy is electricity generated by wind, solar, biomass, geothermal, or hydropower. The environmental attribute associated with this electricity generation can be split from the underlying energy is sold and claimed by organizations and individuals to help drive demand for more renewable energy production. This market-based approach gives energy users another tool to advance their climate accountability goals.

RECs represent the environmental attributes associated with renewable electricity generation in North America.

1 REC = 1 MWh of energy

RECs legally substantiate renewable electricity generation and consumption and reduce GHG emissions. Outside of North America, the environmental attribute is called an EAC (Energy Attribute Certificate).

GEGPO can help you acquire RECs or global EACs to expand your renewable electricity choices beyond what your utility may offer. This might be attractive if you are looking to address your organizations Scope 2 emissions with Renewable Energy. Tracking and retiring the environmental attribute is required, and RECs and EACs can only be used once—which creates demand for more renewable electricity projects. GEGPO is a Green-e® Energy retailer.

RECs must be tracked and audited by an accredited third-party verifier following specific criteria dictated by internationally recognized standards bodies. Various state and regional entities track and verify RECs. The Center for Resource Solutions operates the Green-e® program which is one of the best-known and most trusted systems for auditing, certifying, tracking, and retiring RECs Verification criteria include:

Green-e® Certified Renewable Energy Product Quality Standards

• Purchasers have exclusive rights to claims made in connection with Green-e® Energy certified renewable energy products to avoid double counting renewable energy attributes
• Green-e® certification covers the entire chain of custody, from generation to retirement, 
• Marketing of renewable energy products complies with the FTC Green Guides for environmental marketing claims

Carbon accounting is the process of measuring, tracking, and reporting the amount of carbon dioxide (CO₂) and other greenhouse gases (GHGs) that an organization emits. It's an essential tool in efforts to mitigate climate change, as it helps entities understand their carbon footprint, set reduction goals, and track progress over time.

Here are the key components of carbon accounting:

1. Scope 1, 2, and 3 Emissions:

• Scope 1: Direct emissions from owned or controlled sources (e.g., fuel combustion in company vehicles).
• Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting entity.
• Scope 3: All other indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions (e.g., emissions from the production of purchased goods, transportation, and use of sold products).

2. Carbon Footprint: The total amount of GHGs emitted directly and indirectly by an entity, usually measured in carbon dioxide equivalents (CO₂e).

3. GHG Protocol: A widely used framework for measuring and managing GHG emissions, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

4. Carbon Offsetting: Compensating for emissions by investing in projects that reduce or remove GHGs from the atmosphere, such as reforestation or renewable energy projects.

5. Carbon Neutrality: Achieving a net-zero carbon footprint by balancing emitted and offset emissions.

6. Reporting Standards: There are various standards and guidelines for reporting carbon emissions, such as the Carbon Disclosure Project (CDP), Global Reporting Initiative (GRI), and the Task Force on Climate-related Financial Disclosures (TCFD).

Carbon accounting is increasingly important for businesses, governments, and other organizations as they work to meet sustainability targets, comply with regulations, and respond to stakeholder demands for transparency on environmental impacts.

There are over 30 Voluntary Carbon Market (VCM) registries, although the primary internationally-recognized registries and standards bodies are:

• American Carbon Registry (ACR)
• Climate Action Reserve (CAR)
• Gold Standard (GS), and 
• Verra (VCS)

These internationally recognized registries maintain rigorous standards for carbon mitigation projects. They provide guidelines for new and existing projects and approve methodologies for measuring specific project types. They are critical to the issuance and tracking of Carbon Offsets, enabling project developers to issue, transfer, and transparently retire offset credits. 

An EPD, or environmental product declaration, is an internationally recognized measure of the Global Warming Potential (GWP), commonly known as the carbon footprint, of any product or material over its lifetime. EPDs have been adopted as the global standard and are third-party verified for integrity.  Product manufacturers use EPDs to provide environmental performance information about their products.

EPDs are used to compare products, so purchasers know what they are getting and producers can communicate about their products based on factual environmental claims, while also serving as a key metric for manufacturers to design and build lower-impact products.

Having an EPD allows you to calculate and measure the carbon offsets you would need to launch a carbon neutral product line, and we have partners than can help with this! 

A Life Cycle Assessment (LCA) is a systematic method used to evaluate the environmental impacts associated with all stages of a product's life, from raw material extraction (cradle) to disposal or recycling (grave). The goal of an LCA is to quantify the environmental burdens of a product or process and identify opportunities to reduce these impacts.

Having an LCA allows you to calculate and measure the carbon offsets you would need to launch a carbon neutral product line, and we have partners than can help with this! 

Purchasing carbon credits supports the development of renewable energy and other carbon mitigation projects, and serves as an incentive to move sustainable development forward. Many voluntary carbon reduction efforts would likely not move forward without the carbon credit and offset market.

The project registration and validation process can take as long as two years and requires complex accounting and in-depth verification between the project developers, the standards organizations, and third-party verifiers to uphold the environmental integrity of GHG emission reductions or removals quantified in each carbon offset throughout the life of the project. These efforts are real and they do matter. These projects have to prove additionality and would not exist without the revenue of the carbon offset purchase.

EACs make it possible for entities to make reliable claims about their energy usage. They play an important role in tracking and assigning ownership to renewable electricity generation and use. Since electricity is not tangible and tracing specific electrons through the grid is not possible, it is important to use EACs as an accounting instrument to certify the factual characteristics of how, where, and when a MWh of electricity was produced. Standards bodies like the Center for Resource Solutions define baseline criteria for renewable energy generation, which adds value to RECs that qualify for certification. Clear, credible REC and EAC specifications support a robust voluntary market. 

Examples of third-party standards that independently audit global EACs are Green-e®. These organizations verify the chain of custody for EACs to ensure only one customer claims credit for the renewable energy and environmental attributes created. Green-e® is the most stringent and widely used voluntary REC certification program in the U.S. and sets buyer protection and environmental standards for REC products. 

GreenEnergy GPO exists to help organizations wanting to purchase Carbon Offsets, RECs , or other global EACs in a fast-paced, ever-changing marketplace.