Net Zero Initiative - Guidance on the carbon accounting of renewable electricity purchases

The electricity sector plays a key role in the overall decarbonization of energy, and of many sectors that depend on it. Furthermore, companies are expected to demonstrate their ability to reduce the electricity emissions on which they depend. Companies can purchase, consume, or finance renewable energy through various market mechanisms and contractual tools. 

But, given that electricity networks are connected at regional or national level, it is rare for these procurement contracts to reflect a physical link between producer and consumer. 

Under which conditions does an electricity procurement contract really help to decarbonize the electricity on which an organization depends? 

The new guide from the Net Zero Initiative proposes to clarify the position of NZI concerning climate accounting rules for these situations, both in Pillar A (induced emissions) and in Pillar B (avoided emissions) of the NZI framework. Its goal is to establish a more precise methodology for evaluating the actual climate impact of various procurement contracts. For this occasion, we presented a webinar on september 26.