{"id":55737,"date":"2025-02-24T10:54:13","date_gmt":"2025-02-24T10:54:13","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=55737"},"modified":"2025-02-24T11:34:20","modified_gmt":"2025-02-24T11:34:20","slug":"corporate-renewable-energy-procurement-greenwashing-or-a-catalyst-for-the-eus-clean-industrial-transition","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/corporate-renewable-energy-procurement-greenwashing-or-a-catalyst-for-the-eus-clean-industrial-transition\/55737\/","title":{"rendered":"Corporate renewable energy procurement: Greenwashing or a catalyst for the EU\u2019s clean industrial transition?"},"content":{"rendered":"
In 2023, the amount of renewable energy purchased by businesses and corporations in Europe grew by over 52%<\/a>, reaching 20 GWs.<\/p>\n However, several academic papers like Bjorn, A. et al. (2022<\/a>) have questioned the true emission reduction behind these figures, sparking debate over the credibility of companies\u2019 environmental claims based on renewable energy procurement, a position echoed in leading media outlets like The Washington Post<\/a>, Financial Times<\/a> and Wall Street Journal<\/a>.<\/p>\n Critics argue that allowing companies to purchase certificates (e.g., Guarantees of Origin<\/a>) to claim renewable electricity use without any rules on where, when and from which asset the GoOs originated doesn\u2019t always result in tangible emission reductions, doesn\u2019t incentivise building additional renewable energy generation and creates market distortions like Norway exporting more GoOs than actual renewable electricity – Paris, A. et al. (2024<\/a>).<\/p>\n Meanwhile, the recent \u201cDraghi Report<\/a>\u201d on EU competitiveness highlighted the importance of\u00a0corporate renewable energy procurement through Power Purchase Agreements (PPAs) for bolstering the EU\u2019s industrial resilience.\u00a0This debate is central to EU policymakers, affecting both the bloc\u2019s industrial competitiveness and its role as climate transition leader and policy innovator.<\/p>\n The RFNBO Delegated Act<\/a> imposes strict rules for proving renewable electricity use in green H2, ammonia, etc.<\/p>\n It must be generated locally, within the same hour as consumption and from newly built power plants. This shows EU leadership, as similar US rules under the 45V Clean Hydrogen Tax Credit were recently ratified<\/a>.<\/p>\n On the other hand, the Carbon Border Adjustment Mechanism<\/a> (CBAM) allows exporters from outside the EU to rely on renewable energy procurement to lower products\u2019 embedded emissions without any of the strict rules of the RFNBO Delegated Act mentioned above.<\/p>\n Lax rules are also present in the EU\u2019s renewable electricity reporting rules for Data Centers<\/a> (EU 2024\/1364).<\/p>\n The recent EV Batteries Delegated Act takes a completely different position by not allowing renewable energy procurement in any shape or form to reduce embedded emissions. This has caused a recent outcry from many companies<\/a> and trade associations.<\/p>\n Beyond the above policies, the Corporate Sustainability Reporting Directive (CSRD) introduces mandatory reporting, requiring large companies, listed SMEs, and non-EU firms with significant EU activity to disclose detailed sustainability data, including renewable energy use and related emissions.<\/p>\n However, CSRD rules for renewable energy usage claims are based on the GHG Protocol Scope 2 Guidelines<\/a> \u2013 the global standard for corporate renewable energy claims and related carbon emissions \u2013 which is currently being revised<\/a>. It is, therefore, currently unclear what rules companies will have to follow.<\/p>\n As society strives to electrify energy usage, decarbonise electricity generation and link financial and carbon markets, the definition of what it really means for companies to procure and consume green energy<\/a> is pivotal.<\/p>\n As a Young Energy Ambassador, I urge the EU to show clear signs that it supports fostering, not\u00a0 undermining, renewable energy procurement, with clearer and stricter rules that incentivise developing additional renewable energy capacity.<\/p>\n With improved rules and stringent mandatory reporting, corporate renewable procurement can drive lasting climate impact and bolster the EU\u2019s industrial resilience.<\/p>\n This opinion editorial is produced in co-operation with the European Sustainable Energy Week 2025. See <\/em><\/strong>ec.europa.eu\/eusew<\/em><\/strong><\/a> for open calls.<\/em><\/strong><\/p>\n Simone is the co-founder and CPO of Flexidao – a clean energy intelligence platform provider – and a key figure in the advancing clean energy procurement space. He is known for his active role in the development of new standards and guidelines in collaboration with the GHG Protocol Technical Working Group, the EnergyTag initiative, the Global Renewable Alliance, and the Linux Energy Foundation.<\/p>\n Disclaimer:<\/strong> This article is a contribution from a partner. All rights reserved.<\/p>\n Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the information in the article. The opinions expressed are those of the author(s) only and should not be considered as representative of the European Commission\u2019s official position.<\/p>\n","protected":false},"excerpt":{"rendered":" Simone Accornero discusses how corporate renewable energy procurement in Europe is growing, but clearer EU rules are needed.<\/p>\n","protected":false},"author":15,"featured_media":55739,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24204],"tags":[628],"acf":[],"yoast_head":"\nHow are renewable energy use claims dealt with in EU rules?<\/h3>\n
Transparency and accountability through corporate sustainability reporting<\/h3>\n
Driving global change and future steps<\/h3>\n
Recommended links<\/h4>\n
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About the author<\/h4>\n