EACs, including RECs, iRECs, GECs, GOs, SAF credits, and similar instruments are market-traded and spur the development of clean energy projects. The underlying project is not required to have a geographical or grid connection to your value chain, which is why EACs are generally considered “beyond value chain.” However, in certain cases emission reductions from EACs can overlap with the value chain. For this reason, there are nuances to counting EACs, as explained below.
The purchase of eligible EACs may affect the GHG Inventory, and may affect the CTB, depending on:
Who purchased the EAC
Whether the EAC is tied to electricity or fuels
How the certifying entity chooses to count the EAC within the GHG inventory
This table explains how to count EACs:
EAC purchased by | Type of EAC purchased | Reduces GHG inventory? | Counts toward CTB? |
Certifying entity | Electricity via green tariff, PPA, vPPA | Reduces Scope 2 emissions directly | Price premium counts as VCA funding |
Certifying entity | Electricity via REC, GEC, zREC, iREC, etc. | EITHER reduces Scope 2 emissions via market adjustment | OR cost of EAC counts as BVC funding |
Certifying entity, on behalf of a supplier | Electricity via REC, GEC, zREC, iREC, etc. | EITHER reduces Scope 3.1 emissions via market adjustment | OR cost of EAC counts as VCA or BVC funding |
Certifying entity, on behalf of a supplier | Fuels via SAF credit, ZETA, ZEMBA, etc. | Reduces Scope 3.4 and/or 3.9 emissions | Cost of EAC counts as VCA or BVC funding |
Tier 1 or 2 supplier | Electricity via REC, GEC, zREC, iREC, etc. | Reduces Scope 3.1 emissions via market adjustment | Does not count since the cost was not incurred by the certifying entity. |
Tier 1 or 2 supplier | Fuels via SAF credit, ZETA, ZEMBA, etc. | Reduces Scope 3.4 and/or 3.9 emissions | Does not count since the cost was not incurred by the certifying entity. |