Ever.green Brings Additionality to the Energy Sector via High-Impact REC Contracts
14 Mayo 2024 - 11:00AM
Business Wire
Ever.green today released a whitepaper detailing a new approach
to procuring Renewable Energy Certificates (RECs) that
significantly enhances their impact on the energy transition.
Titled "High-Impact RECs: Applying Additionality for Renewable
Energy Advancement," this publication addresses the urgent need for
substantive change in the REC market to meet global climate
targets.
Amid rising global emissions driven primarily by energy
production, the transition to renewable energy has become
imperative. Currently, over 77% of global emissions are
energy-related, with a significant portion stemming from
electricity generation. This white paper comes at a critical time
when international efforts, such as those discussed at COP28, are
pushing for a tripling of renewable energy capacity by 2030 as a
key strategy to mitigate climate change.
However, challenges in financing have slowed progress.
Traditional REC spot markets, while well-established, often fail to
contribute meaningfully to the financial viability of new projects
due to low and uncertain future prices. The over 313,000 companies
that buy spot-market RECs to meet their sustainability goals have
historically lacked better alternatives that can still be reliably
transacted.
“Many businesses have been buying cheap, short-term, spot market
RECs to substantiate their claim of running on 100% carbon-free
energy,” said Cris Eugster, CEO and Co-founder of Ever.green. “But
as we face the need to rapidly accelerate the energy transition,
buyers are seeking products with significantly more impact that are
straightforward to contract.”
“Renewable energy is the future, but current project financing
mechanisms, like spot-market RECs, need revamping to truly
influence global change,” said Michael Leggett, Co-Founder and
Chief Product Officer of Ever.green. “Our high-impact RECs ensure
that every certificate directly contributes to the financing and
viability of new projects, addressing the core issue of
additionality in a way that traditional markets have failed to
do.”
Key highlights from the white paper include:
- An in-depth analysis of current REC market dynamics and their
shortcomings in supporting new renewable energy developments.
- Introduction of a set of principles and a methodology for
testing for additionality to ensure RECs play a meaningful role in
the financial health of new projects.
- A critique of the idea that the 24x7 CFE approach is the
fastest and most effective way to increase the amount of overall
renewable energy.
Ever.green’s new approach prioritizes long-term contracts,
meaningful pricing, and rigorous additionality testing to ensure
that REC purchases provide substantial economic benefits to
renewable projects, making them more attractive to investors and
more likely to be placed in service. In addition, all projects must
meet strict criteria for their broader impacts on climate,
wildlife, and communities.
“Decarbonizing the power sector quickly is among the most clear
and direct steps toward a sustainable economy. And most private
companies that want to help accelerate beyond government
commitments have limited credible options to participate,” said
Jesse Noffsinger, a partner in global consultancy McKinsey’s energy
practice. “Products and data are needed to democratize impactful
clean energy purchasing; this work significantly advances the
conversation and sets the stage to making that possible.”
The white paper, which was reviewed by more than 30 experts
across the renewable energy industry, including representatives
from Greenhouse Gas Management Institute, The University of
Edinburgh, WattTime, and others, is available for download at
ever.green/additionality, and offers insights for policymakers,
corporate leaders, and stakeholders in the renewable energy sector.
Ever.green invites all interested parties to explore the potential
of high-impact RECs and join in their effort to reshape the
landscape of renewable energy support.
About Ever.green:
Ever.green is a leading sustainability-focused organization
dedicated to advancing renewable energy projects through innovative
financial solutions and market restructuring. With a commitment to
environmental integrity and community impact, Ever.green strives to
make renewable energy accessible and impactful on a global
scale.
Disclaimer:
The opinions and findings presented in the linked whitepaper, as
well as any errors or inaccuracies, are solely attributable to the
author and do not reflect the views or opinions of any other
individual, organization, or entity. The author assumes full
responsibility for the content provided and encourages readers to
exercise critical thinking and independent judgment when
interpreting the information presented.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240514408214/en/
Liz Pearce Chief Revenue Officer Ever.green 206.226.9247
liz@ever.green