McDonough Braungart Design Chemistry (MBDC) recently went through the process of reviewing its own purchases of renewable energy certificates (RECs) and carbon offsets, and learned some lessons along the way. As it can be an involved process, we'd like to share what we took away from the process -- and hope you will benefit from our experience in the marketplace.
Buying environmental commodities such as RECs and carbon offsets has been an increasingly important strategy for corporate environmental performance. For stakeholders seeking to grow the clean energy economy, RECs have become increasingly important. For those looking to create a carbon-neutral company, event, or personal lifestyle, carbon offsets are commonplace.
Supporting renewable energy and reducing greenhouse gas (GHG) emissions are linked concepts that often get confused. RECs can reduce emissions if they displace emissions that would have been created otherwise from electricity produced by a fossil fuel source such as a coal-fired power plant. However, there are other benefits to clean energy such as energy independence, energy security and jobs. RECs can also be used as a carbon management strategy, in some instances.
The Greenhouse Gas Protocol segments emissions into three categories: Scope 1 (direct), Scope 2 (indirect, such as purchased electricity) and Scope 3 (other indirect sources). Because RECs represent offsets of purchased electricity, it only makes sense for RECs to offset Scope 2 emissions. Carbon offsets can come in many types and typically are used as a proxy for a GHG emissions reduction of one ton. They can be used to offset Scope 1, 2 and 3 emissions.
What’s a sustainability officer to do when evaluating their options? MBDC has developed a 5-step guide to walk you through navigating the voluntary environmental product space.
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Next page: The 5 steps
As the author correctly
As the author correctly states, Green-e® is the leading certification for RECs and renewable energy in North America. I wanted to let readers know that Green-e also has a third-party certification for retail carbon offsets, called Green-e Climate. It is the only program of its kind in the market. Green-e Climate incorporates the project-level assurances of CAR, VCS, and Gold Standard, plus adds additional protections related to retailer accountability and consumer protection in order to ensure quality, transparency, and accuracy across the entire chain of custody of the emissions reduction—from the project, through the retail seller, to you. Offset buyers can look for the Green-e Climate mark to ensure clear, unique, correct, and permanent delivery of high-quality VCS, CAR, Gold Standard, and CDM credits. Visit green-e.org/climate for more information.
The Center for Resource Solutions (CRS) has also recently published a Q&A on the difference between RECs and offsets, and how best to utilize each. It’s available at resource-solutions.org.
As someone who works for a
As someone who works for a REC and Carbon Offset marketer, I can assure all readers that Cal hit the nail on the head. Thanks for sharing your experience, Cal.
RW