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For a lot of companies, electricity is one of the largest and most visible parts of their carbon footprint. It shows up as Scope 2 emissions, and customers, investors, and frameworks like CDP and SBTi increasingly ask how you're addressing it.
In 2015, the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) released new Scope 2 Guidance within the Greenhouse Gas Protocol Corporate Standard. The update introduced a market-based accounting method. It gives companies the opportunity to reduce their reported Scope 2 emissions by purchasing renewable energy certificates, power purchase agreements (PPAs), and other contractual instruments. The GHG Protocol is now revising this guidance, following a public consultation that closed in January 2026.
You can't always choose the source of your electricity. Once power enters the grid, electricity from wind, solar, gas, and coal is combined. Energy Attribute Certificates (EACs), or commonly known in the U.S. as Renewable Energy Certificates (RECs), are how companies make claims to renewable electricity in these cases.
This guide covers what EACs are, how companies use them, and the main types you'll see around the world.
What is an energy attribute certificate (EAC)?
An EAC is a market-based instrument that represents one megawatt-hour (MWh) of electricity generated from a renewable source. Each time a wind farm, solar array, or hydro plant produces 1 MWh and delivers it to the grid, one certificate is issued.
"EAC" is an umbrella term. Each country or region has its own name for these certificates, such as RECs in the US, Guarantees of Origin (GOs) in Europe, and International RECs (I-RECs) in many other markets.
The certificate is tracked in a registry separate from the physical power. The electricity itself flows onto the shared grid, while the certificate carries its environmental attributes: the fact that it was generated with zero emissions, where and when it was generated, and by what type of facility.
Whoever owns the certificate owns those attributes. According to the EPA, RECs "are the accepted legal instrument through which renewable energy generation and use claims are substantiated in the U.S. renewable electricity market." That gives the holder the exclusive right to say that 1 MWh of their electricity use came from renewable sources.
Each certificate is tracked on a registry from issuance to retirement, so the same MWh can't be sold or claimed twice. When a company uses a certificate toward its renewable energy claim, the certificate is retired and can't be resold.
What are EACs used for?
The main use is addressing Scope 2 emissions, the indirect emissions from the electricity a company buys. Under the GHG Protocol's market-based method, purchasing and retiring an EAC lets a company claim that renewable generation as its own electricity use for emissions reporting.
Companies use EACs to:
- Address Scope 2 emissions: Match electricity use with renewable generation and report lower market-based Scope 2 emissions
- Meet renewable energy goals: Support commitments like RE100, which asks companies to source 100% renewable electricity
- Support SBTi targets: Help make progress on science-based reduction targets
- Back up claims to stakeholders: Give customers, investors, and auditors a documented, auditable basis for renewable energy claims, including in CDP disclosures
- Meet compliance obligations: In the US, utilities use RECs to meet state Renewable Portfolio Standards (RPS), which require a set share of clean energy
EACs allow you to make legitimate renewable energy claims without changing your electricity provider.
Bundled vs. unbundled
EACs can be purchased two ways:
- Bundled: The certificates and the electricity are sold together, usually through a power purchase agreement (PPA) or a green utility tariff
- Unbundled: The certificates are bought on their own, separate from the power. This is often the most practical option for companies in regulated markets, leased offices, or many locations, where PPAs aren't available
Both approaches send a market signal in support of renewable generation. The quality of the certificate matters more than the purchase structure, which we cover below.
Types of EACs
"EAC" is the umbrella term. Each region has its own certificate and registry, but they all work the same way: one certificate represents 1 MWh of renewable generation. The three you'll see most often are:
- RECs (Renewable Energy Certificates): The standard instrument in the US and Canada
- GOs (Guarantees of Origin): The standard instrument across Europe
- I-RECs (International RECs): Used in 50+ countries, including many in Latin America, Asia, Africa, and the Middle East, where there's no national system
Other markets have their own versions:
Which certificate you need depends on where you use electricity. Under the GHG Protocol, certificates should come from the same market as your consumption. A company with offices in California, Germany, and India would typically use US RECs, European GOs, and I-RECs.
Certificates can also come from different renewable sources, including wind, solar (including community solar), hydropower, geothermal, and biomass.
Types of RECs in the US
Within the US REC market, certificates generally fall into three groups:
- Voluntary (green power) RECs: Bought by companies to meet their sustainability goals, often Green-e certified and drawn from a mix of eligible renewable technologies
- Compliance RECs: Used by utilities and other regulated entities to meet state Renewable Portfolio Standards
- Project-specific RECs: Sourced from a specified generation project that fits a buyer's criteria, such as a particular location, technology, or community co-benefit, rather than a pooled purchase
Most companies buying RECs for Scope 2 use voluntary RECs. Project-specific RECs are used if you want a closer link to a project in a region where you operate.
What makes a high-quality EAC?
The best way to make sure your EACs hold up is to follow recognized standards. The GHG Protocol's Scope 2 Quality Criteria set the baseline for market-based reporting. Many companies also follow the RE100 Technical Criteria, which add stricter rules for credible renewable electricity claims. In some regions, certification programs like Green-e, from the Center for Resource Solutions, add independent verification on top.
- GHG Protocol Scope 2 Quality Criteria: Certificates should meet these requirements to count toward market-based Scope 2 reporting
- Location matching: RE100 requires certificates to come from the same market where you use the electricity
- Vintage matching: RE100 requires the vintage, or when the generation occurred, to be "reasonably close" to the reporting year of your electricity use. In the US, Green-e allows a 21-month window around the reporting year.
- Newer facilities: RE100 requires projects commissioned or repowered within 15 years of the claim. Some procurement types, such as long-term contracts with a specific project, are exempt, and companies can use older projects for up to 15% of their electricity use.
- Third-party certification: In the US, Green-e is the most recognized voluntary standard, and it's also available in Canada, Chile, Taiwan, and Singapore. It requires facilities built in the last 15 years and protects against double counting.
- Clear documentation: Retirement certificates and purchase records give auditors and stakeholders what they need
How CNaught helps
CNaught makes it easy to match your electricity use with EACs wherever you operate. Every EAC we offer:
- Meets the GHG Protocol Scope 2 Quality Criteria: Certificates count toward market-based Scope 2 reporting
- Comes from newer facilities: Every project was commissioned or repowered within the last 15 years
- Is accepted by leading frameworks: Our EACs are accepted under RE100, CDP, SBTi, and GHG Protocol Scope 2 market-based reporting
Green-e certified RECs are also available for buyers who need third-party verification behind their claims.
Many of our customers pair EACs for Scope 2 with high-quality carbon credits for their remaining Scope 1 and 3 emissions. Our AI-powered dashboard lets them track both in one place, access their certificates, and download order reports for CDP and other reporting.
Ready to make an impact? Reach out to our team to learn more about how you can address your Scope 2 emissions with high-quality EACs.
FAQ
What is a Renewable Energy Certificate (REC) or Energy Attribute Certificate (EAC)?
An energy attribute certificate (EAC) is a market-based instrument that represents 1 MWh of electricity generated from a renewable source. It's tracked on a registry separately from the physical power, and it gives the owner the exclusive right to claim that renewable generation as their own electricity use. EACs go by different names around the world. The US and Canada use Renewable Energy Certificates (RECs), Europe uses Guarantees of Origin (GOs), and more than 50 other countries use International RECs (I-RECs).
- How RECs work: A REC is issued when a renewable facility produces 1 MWh of electricity and delivers it to the grid in the US or Canada. RECs can be bought with the electricity, for example through a PPA, or on their own.
- Eligible sources: EACs typically come from wind, solar, geothermal, biomass, and certain hydropower projects.
- Labels for added impact: Some EACs carry extra labels that certify social or economic co-benefits. Peace RECs (P-RECs), for example, are I-RECs with a supplementary label from Energy Peace Partners. They support renewable projects in climate-vulnerable countries with limited electricity access and investment. Each P-REC still represents 1 MWh of renewable generation.
How do EACs work?
When a renewable facility generates 1 MWh of electricity and delivers it to the grid, one EAC is issued. The electricity mixes with power from all other sources on the shared grid. The certificate is tracked separately on a registry and carries the generation's environmental attributes: that it produced zero emissions, and where, when, and by what type of facility it was generated.
A company buys EACs to match the electricity it uses. When it claims that renewable generation, the certificates are retired on the registry so they can't be resold or claimed twice. Under the GHG Protocol's market-based method, retired EACs let the company report that electricity as renewable and lower its Scope 2 emissions.
Why should my company purchase EACs?
Purchasing EACs allows your company to lower its market-based Scope 2 emissions. Because your money flows to renewable generators, you can make a recognized, auditable renewable energy claim. Companies use EACs to:
- Reduce reported Scope 2 emissions: Match electricity use with renewable generation under GHG Protocol market-based accounting.
- Meet renewable energy goals: Make progress toward commitments like RE100's goal of 100% renewable electricity.
- Support SBTi targets: SBTi accepts renewable electricity targets as an alternative to Scope 2 reduction targets.
- Respond to customers and investors: Give a documented, auditable basis for renewable energy claims in CDP disclosures, EcoVadis ratings, and RFPs.
- Support clean energy: Send a market signal in support of renewable generation.
What’s the difference between an Energy Attribute Certificate (EAC) and Renewable Energy Certificate (REC)?
An energy attribute certificate (EAC) is the umbrella term for any certificate that represents 1 MWh of renewable electricity generation. A renewable energy certificate (REC) is the type of EAC used in the US and Canada.
Other regions use their own EACs, such as Guarantees of Origin (GOs) in Europe and International RECs (I-RECs) in 50+ other countries. They all work the same way. Each certificate is tracked on a registry and retired when a company claims it, so the same MWh can't be claimed twice.
The right type depends on where you use electricity, since certificates should come from the same market as your consumption.
What criteria do CNaught’s EACs meet?
Every EAC CNaught offers meets the GHG Protocol Scope 2 Quality Criteria, so it counts toward market-based Scope 2 reporting. Each certificate comes from a facility commissioned or repowered within the last 15 years, in line with RE100's technical criteria. We match certificates to the markets where you use electricity and to your reporting year. That makes them eligible for use toward RE100, CDP, and SBTi targets.
Green-e certified RECs are also available for buyers who need third-party verification. Green-e is run by the non-profit Center for Resource Solutions. It independently audits each certificate so only one buyer can claim each megawatt-hour of renewable generation.
Every purchase includes a retirement certificate and purchase documentation for your auditors and stakeholders.
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