Renewable Energy Credits Allow Companies to Overstate Emissions Reductions

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The findings of a new study call into question whether businesses are truly meeting climate goals

CLIMATEWIRE | Tradable credits for renewable energy generation are allowing companies to exaggerate their progress toward slashing emissions, according to a new report from Concordia University and the University of Edinburgh Business School.

The practice of incorporating REC use into emissions reporting “casts serious doubt on the veracity of reported corporate emission trajectories and their apparent alignment with the most ambitious Paris Agreement temperature goal,” the authors wrote. “But when these certificates are unlikely to actually put more renewables on the grid,” Bjørn added, “you’re sort of just taking credit for something that would have happened anyway.”

The number of companies with climate goals has exploded in recent years. In 2016, SBTi announced that 200 companies had committed to setting science-based targets. Today, more than 3,000 companies have set or are setting targets. Take RECs out of the equation, and emissions would have decreased by only about 10 percent during the same period, the researchers said. At that rate, the drop in emissions would only be able to meet SBTi’s less ambitious trajectory for keeping warming below 2 degrees Celsius, which the group dropped last year to better reflect Paris Agreement ambitions.

 

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That depends on their quantum understanding or as they say: their micro economic reform.

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They’re not and the carbon credits are money laundering scams backed by fake trees.

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