In 2015, the World Resources Institute (WRI) unveiled new guidance for Scope 2 emissions accounting within the Greenhouse Gas Protocol Corporate Standard. This update introduced a market-based accounting mechanism that gives companies the opportunity to reduce their Scope 2 emissions through the purchase of renewable energy certificates, PPAs, and other contractual instruments. This provision has driven a new focus on global energy purchasing, with more organizations looking for options across the globe.
The I-REC, an international renewable energy certificate, represents proof that one MWh of electricity was produced from renewable energy sources and added to the grid. It embodies all of the environmental attributes of renewable generation. The source can be wind, solar, ocean energy, biomass, hydropower, landfill gas, aerothermal, geothermal and landfill gas. 3Degrees only transacts in I-RECs issued in countries authorized by the 2016 International REC Standard and traded on the I-REC international registry. This standard establishes rules and regulations for a transparent system that simplifies claims and eliminates double counting issues, making products compliant with Scope 2 reporting guidelines.
In some cases, I-REC has country specific restrictions on technology or other criteria. In addition, individual countries many have their own specific regulations and protocols above and beyond the I-REC standards.