RE100 & Renewable Energy Certificates: A Strategic Framework for Corporate Climate Action

Master the technical framework defining corporate renewable electricity credibility. Understand how RE100 shapes procurement strategies, market dynamics, and investor expectations in the transition to grid decarbonization.

In This Article

1. The RE100 Standard 2. Renewable Energy Certificates: The Foundation 3. RECs vs Carbon Offsets: Key Distinctions 4. GHG Protocol Scope 2: Market-Based Accounting

5. RE100 Critical Requirements 6. Procurement Strategy 7. Key Terminology 8. Canopy Platform: RE100 Data & Analytics

1	The RE100 Standard

RE100, convened by The Climate Group in partnership with CDP, represents the most influential corporate renewable electricity initiative globally. The framework establishes the technical guardrails that distinguish credible climate action from superficial claims.

The initiative's dual mandate shapes corporate renewable electricity markets worldwide. Major corporations across sectors rely on these criteria to structure procurement strategies that meet investor, regulator, and customer expectations for climate leadership.

RE100 Key Milestones Timeline

2	Renewable Energy Certificates: The Foundation

Renewable Energy Certificates (RECs)—known as Energy Attribute Certificates—function as legally enforceable property rights to the environmental attributes of renewable electricity generation. Each certificate represents one megawatt-hour of renewable generation and serves as the instrument that transfers the renewable and zero-emissions characteristics from generator to end user.

This isn't a technicality—it reflects the physical reality of grid-delivered electricity. The electrons reaching your facility are indistinguishable from those generated by coal or natural gas plants.

RECs provide the legal and accounting mechanism to match your consumption with specific renewable generation. When properly tracked and retired, these certificates ensure that renewable attributes aren't double-counted or claimed by multiple parties.

3	RECs vs Carbon Offsets: Key Distinctions

Organizations frequently conflate RECs with carbon offsets, but their functions differ fundamentally. RECs represent renewable electricity use measured in megawatt-hours and directly reduce gross market-based Scope 2 emissions. Carbon offsets represent emission reductions measured in metric tons CO₂e, applied as net adjustments across any emission scope.

Attribute	RECs	Carbon Offsets
Measurement Unit	MWh (megawatt-hours)	Metric tons CO₂e
Purpose	Track renewable electricity	Offset total emissions
Reporting Impact	Reduces Scope 2 (market-based)	Reduces net emissions
Scope Applicability	Scope 2 only	Any scope (1, 2, 3)

4	GHG Protocol Scope 2: Market-Based Accounting

The GHG Protocol distinguishes between location-based and market-based Scope 2 emissions accounting. Location-based accounting uses the average grid emission factor for the region where electricity is consumed. Market-based accounting, required for RE100, uses emissions factors specific to the renewable electricity you procure and retire.

This distinction matters enormously for credibility. A company claiming "100% renewable electricity" without market-based Scope 2 accounting may still generate significant emissions. RE100 requires market-based reporting, ensuring that renewable electricity claims translate into measurable emissions reductions.

Organizations must establish clear boundaries: which facilities count toward RE100 targets, which certificate types they'll accept, and how geographic matching will be verified. These choices compound across years, making procurement infrastructure decisions foundational to long-term compliance.

5	RE100 Critical Requirements

Recognized Renewable Energy Technologies

Five Procurement Types

Organizations have five primary pathways to procure renewable electricity and RECs that qualify under RE100:

Self-Generation On-site renewable generation

Direct PPA Long-term project contracts

Virtual PPA Financial hedging contracts

EAC Purchase Spot market purchases

Green Tariff Utility renewable programs

The 15-Year Commissioning Window

Geographic Market Boundaries & Matching Requirements

RE100 requires that renewable energy be matched geographically to consumption locations. This prevents companies from claiming renewable electricity sourced from regions where they don't operate—a practice called geographic arbitrage. The framework defines specific market boundaries (North America, Europe, APAC regions, etc.) and requires generation and consumption to occur within the same boundary.

For multi-region operations, this creates complexity: a company with facilities in both California and New York must source separate RECs from respective generation regions. Cross-border procurement within market zones is permitted (e.g., Canadian and U.S. generation within North America), but not across zones.

6	Procurement Strategy: Building a Scalable Framework

Most organizations fall into one of three procurement patterns: cost-first optimization, impact-first allocation, or hybrid balanced strategies. Each has trade-offs around cost, climate ambition, and market stability.

Cost-First Optimization Prioritizes spot market EAC purchases for lowest per-MWh cost. Optimizes portfolio monthly based on pricing signals. Best for organizations with flexible timelines and significant procurement scale.

Impact-First Allocation Structures multi-year PPAs with developing renewable projects. Higher per-MWh cost but drives new capacity development. Aligns with science-based climate targets and investor expectations.

Most mature programs combine both: 60-70% fixed PPA commitments anchoring supply with 30-40% spot market flexibility for cost management and portfolio optimization.

The 2027 EAC mandate creates urgency: companies still sourcing legacy REC types must transition infrastructure now. Those already compliant gain competitive advantage through established supplier relationships, market intelligence, and procurement automation.

7	Key Terminology

Understanding RE100's technical vocabulary is essential for procurement teams and sustainability professionals evaluating compliance strategies.

Energy Attribute Certificates (EACs) Regional certificates representing renewable electricity attributes (RECs in North America, GOs in Europe, etc.)	Power Purchase Agreement (PPA) Long-term contract for electricity supply, typically 10-25 years, at fixed or variable prices
Virtual PPA (VPPA) Financial hedging contract decoupling electricity purchase from physical delivery, reducing transmission constraints	Green Tariff Utility-administered renewable electricity program bundling energy and attributes in a single retail product
Retirement / Surrender Permanent removal of certificates from circulation, preventing double-counting and validating renewable claims	Additionality Concept that renewable project would not exist without procurement revenue—core to carbon offset credibility

8	Canopy: Strategise. Procure. Report.

Canopy delivers end-to-end Scope 2 renewable energy procurement for RE100 compliance. From ambition setting and market strategy through REC sourcing and audit-ready reporting, Canopy combines intelligent platform tooling with expert guidance to transform renewable electricity claims into credible, verifiable climate action.

Key Takeaways

Compliance Checkpoint RE100's market-based Scope 2 accounting requires not just renewable electricity, but geographically matched, recently commissioned, properly retired certificates—transforming renewable claims from aspirational marketing into auditable climate action.

Strategic Opportunity Organizations that master RE100's procurement framework gain competitive advantage—lower renewable electricity costs, stronger investor positioning, and accelerated grid decarbonization from concentrated purchasing power.

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