Alex Pennock 14 September, 2017 Green-e Framework for Renewable Energy Certification

Webinar Agenda 1. About Center for Resource Solutions and Green-e 2. Voluntary Market Function and Needs 3. Framework Goals and Development 4. Framework Criteria 5. Example – Singapore 6. Regions of Interest 7. Questions

Center for Resource Solutions (CRS) creates policy and market solutions to advance sustainable energy. ▪ Policy expertise ▪ Expert assistance on tracking systems and electricity markets ▪ Renewable energy and carbon offset certification ▪ Education and white papers ▪ Annual Renewable Energy Markets Conference (New York Midtown Hilton, Oct. 22-24, 2017) https://resource-solutions.org/

Certification Programs

What is Green-e Certification? Consumer protection, quality criteria, ecolabel for voluntary RE sales and consumption ▪ Program participants are sellers and buyers of RE ▪ Certification Standard for transactions and use ▪ Code of Conduct for marketing and claims ▪ Annual verification of sales / use and marketing

Green-e is Not… ▪ A renewable energy certificate (REC) ▪ RECs are contractual tradable instruments to track the generation and use of renewable electricity ▪ A REC tracking system ▪ A carbon offset ▪ A generator certification ▪ Green-e does have generator eligibility rules ▪ A renewable energy / REC buyer, seller or broker

Why Voluntary Purchasing? ▪ Use renewable electricity in place of traditional sources ▪ Use your money to support your values ▪ Save money with some purchase types ▪ Corporate reporting / commitments ▪ Scope 2 GHG emissions ▪ Qualify for other programs like LEED, Cradle-to-Cradle

Why Green-e Certification? Reduce risk and provide purchasing assurances ▪ Enable and accelerate RE use, market growth ▪ Standards for quality and impact ▪ Verification of RE sales and claims ▪ Consumer disclosure, marketing and sales review ▪ Support for multiple purchasing types (electricity programs; RECs; PPAs; on-site…) ▪ Market confidence for long-term growth

Green-e Certified Sales by Customer Type – Canada / US

Retail Customers Purchasing Green-e Certified – Canada / US

Voluntary Markets Need… ▪ Real delivery of specified generation (attributes) ▪ Consumer confidence ▪ No double counting or double claiming ▪ Ongoing interaction with regulatory structure ▪ Regulatory surplus

Voluntary Markets Need… ▪ Real delivery of specified generation (attributes) ▪ Consumer confidence ▪ No double counting or double claiming ▪ Ongoing interaction with regulatory structure ▪ Regulatory surplus

▪ Exclusive ownership ▪ Attribute aggregation ▪ Credible generation data ▪ Exclusive claims ▪ Geographic limitations ▪ Vintage limitations Criteria for Credible Usage Claims

▪ Exclusive ownership ▪ Attribute aggregation ▪ Credible generation data ▪ Exclusive claims ▪ Geographic limitations ▪ Vintage limitations Criteria for Credible Usage Claims

▪ Exclusive ownership ▪ Attribute aggregation ▪ Credible generation data ▪ Exclusive claims ▪ Geographic limitations ▪ Vintage limitations ▪ Generator age restrictions ▪ Avoided carbon emissions Criteria for Credible Usage Claims

▪ Provides risk reduction to all parties ▪ Protects against double claims ▪ Verifies product marketing claims ▪ Meets diverse region-specific requirements ▪ Demonstrates leadership in clean energy and climate ▪ Differentiates your company and products ▪ Strengthens customer loyalty ▪ Provides access to a community of leading organizations ▪ Provides trusted 3rd-party assurances Benefits of Certification

▪ Demand from large purchasers across many markets: ▪ E.U., South America, Singapore, Taiwan, China, Turkey, the United Arab Emirates, Mexico, others ▪ Trust in the Green-e brand and validation processes ▪ Stakeholder consultation, strict environmental standards, industry credibility, audit & verification ▪ Global purchasing and recognition programs ▪ Market development ▪ Follow best practices, simplify purchasing decisions, allow demand to be meaningfully expressed Why Evolve Internationally?

▪ Regional certification standards will represent local stakeholder needs and goals ▪ Provides consistent baseline criteria among Regional Standards, incl. Canada / U.S. Standard ▪ Counts towards Scope 2 reporting ▪ Allows regional certification to rapidly evolve without sacrificing quality or impact ▪ Initially serves large purchasers ▪ Eventually smaller businesses & residential Goals for International Certification

Green-e Framework for Renewable Energy Certification Canada / U.S. Standard Singapore Code Future Regional Standards

▪ International Advisory Group ▪ Staff research and outreach, needs assessment ▪ Experience in North America and CRS policy work ▪ Two stakeholder consultation periods, resulting in revisions and further outreach ▪ Green-e Governance Board: independent review and final vote Framework Development

Baseline criteria; adapted for local needs / goals ▪ New Date – up to 15 years; extended eligibility for long- term contracts ▪ Vintage – 21 month period or less ▪ Resource types vary ▪ Biomass advisory group required when defining biomass eligibility in a Regional Standard ▪ No double counting or double claiming ▪ Not counted toward certain RE / carbon support policies ▪ Generated and used in a defined region Framework Criteria

▪ Green-e value layered onto quantitative tracking ▪ Tracking systems required, though exemption possible ▪ Criteria developed through stakeholder processes ▪ Green-e does not have its own tracking system ▪ Individual systems approved by Region ▪ e.g. government systems, TIGRs, systems using the IREC Standard, others Framework Criteria – Tracking Systems

▪ Direct emissions for Scope 2 reporting ▪ Avoided emissions must be included, to maintain impact of purchasing and avoid double counting ▪ Carbon cap interaction ▪ Off-the-top mechanism ▪ Cap set lower due to RE sold in voluntary market ▪ Allowances retired for RE purchaser ▪ In some cases offsets may be used Framework Criteria – Carbon Value

Application of Framework: Regional Code for Singapore Publishes November 2017

▪ Singapore Code launches in late 2017 ▪ Taiwan process ongoing ▪ Advising Chinese agencies tasked with REC system development ▪ Exploring interest from E.U., Asia, Latin America and the Middle East ▪ Formalizing Regional Standard application process ▪ Interested parties should contact Green-e Status of Green-e Market Development

www.green-e.org [email protected] Learn More