14 June 2022
Setting ambitious goals, Indian businesses are following the race to net-zero at a rapid pace. Since the commercial & industrial sector accounts for 50% of the electricity consumption globally, integrating an alternative to brown power can benefit both; the environment and businesses at large. Businesses can unlock the power of sustainability to replace conventional sources of energy with solutions that offer higher savings & reliability at the same time.
Following the go green momentum, investors also now demand more considerations by businesses towards their environmental, social, and governance (ESG) commitments. This reinforces asset managers to reevaluate their contribution towards the #ZeroEmission movement.
The Securities and Exchange Board of India (SEBI) has also made it mandatory for the Top 1,000 listed companies from FY 2022-23, and voluntary from FY 2020-21 to report on climate change and other topics. A total of 365 companies have now pledged to the RE100 initiative committed to 100% renewable electricity, globally.
Businesses, now more than ever, are committed to achieving net-zero carbon emissions by following steps like reducing their current energy consumption, transitioning to renewable energy sources, and, off-setting fossil-fuel-based energy consumption with the help of energy attribute certificates.
What are energy attribute certificates?
Obliging to I-REC standards, energy producers can render their own reliable, clean energy that is traceable and tradable. I-RECs as an instrument allow businesses to procure this energy even in the countries that don’t have their own certification systems. Each I-REC represents proof that 1 MWh of renewable energy has been produced and takes into account the multiple environmental benefits that are equivalent to the RE generated via that one certificate by generating a unique ID for each I-REC. This ID in return tracks the asset that has generated that RE, enabling the purchaser to cross-check the authenticity and quality of clean energy generated. Generated from an underlying RE asset, through this process I-RECs prevent double-counting, double issuing, and false claiming of emissions reductions at the source.
I-RECS offer companies and individuals a convenient way to offset their carbon footprint and transition to green energy by simply claiming the energy that comes from renewable sources & renewable energy attributes of that electricity. The end-consumer can avail, redeem or trade the issued I-RECs and benefit from the same simultaneously.
How do I-RECs benefit businesses?
On their journey to become more socially responsible, as businesses transition to conscious usage of RE, I-RECs come in handy without investing in large-scale generation projects involving physical setup. Amongst many other advantages that I-RECs unravel for businesses, some of the key ones include the following.
Who should opt for I-RECs?
If you fit into any of the following criteria, I-REC can prove to be an ideal solution for your business to turn on the #GreenSwitch.
As procurement of RE continues to become a necessity instead of an option, understanding its feasibility & benefits to match your business needs become more crucial. To overcome any hindrances proposed by physical procurement, instruments like I-REC prove to be much more beneficial and convenient.