Simone Accornero from Eusew Young Energy Ambassador discusses how companies are growing in Europe’s renewable energy procurement, but more clear EU regulations to ensure actual climate impacts is required.
In 2023, the amount of renewable energy purchased by European companies and businesses increased by more than 52% to reach 20 GW.
But Bjorn, A. et al. (2022) questioned the true emission reductions behind these numbers and sparked debate over the reliability of corporate environmental claims based on renewable energy procurement.
Critics say that by allowing companies to provide certificates (e.g., guarantees of origin) it is possible to regenerate assets from where, when, and where, where, where, that assets sent by Goos doesn’t always lead to concrete emission reductions. They claim they are allowed to request the use of electricity. It creates renewable energy generation and distortions in markets like Norway, which exports more goo than actual renewable electricity – Paris, A. Etal. (2024).
Meanwhile, the recent Draghi report on the EU’s competitiveness highlighted the importance of companies’ renewable energy procurement through electricity purchase agreements (PPAs) to enhance the EU’s industrial resilience. This discussion is central to EU policymakers and affects both the bloc’s industrial competitiveness and its role as a climate transition leader and policy innovator.
How do EU rules deal with renewable energy usage claims?
The RFNBO Mandate Act imposes strict rules to prove renewable electricity use in green H2, ammonia and more.
It must be generated locally from newly constructed power plants within the same hour as consumption. This demonstrates EU leadership as similar US rules under the 45V clean hydrogen tax credit were recently ratified.
Meanwhile, the Carbon Boundary Adjustment Mechanism (CBAM) allows exporters from outside the EU to rely on renewable energy procurement to reduce embedded emissions of products, without the strict rules of the RFNBO mandate law mentioned above. Masu.
The LAX rule also exists in the EU’s renewable power reporting rules for data centers (EU 2024/1364).
The recent EV Battery Commission Act occupy a completely different position by not allowing the procurement of renewable energy in any shape or shape to reduce embedded emissions. This has sparked recent protests from many businesses and industry groups.
Transparency and accountability through corporate sustainability reporting
Beyond the above policies, the Corporate Sustainability Report Directive (CSRD) is intended to disclose detailed sustainability data such as renewable energy use and related emissions, and to provide for large, listed small and medium-sized enterprises, as well as non-EU companies. It introduces mandatory reporting that calls for important EU companies.
However, the CSRD regulations for renewable energy usage claims are based on the GHG Protocol Scope 2 Guidelines, a global standard for enterprise renewable energy claims and related carbon emissions. Therefore, it is unclear what rules companies must follow at the moment.
Drive global change and future steps
As society strives to link energy use, decarbonised power generation, financial and carbon markets, it is vital that the definition of what companies really mean by procuring and consuming green energy.
As a young energy ambassador, I have given the EU a clear indication that it will support renewable energy procurement, not undermining, with clearer and stricter rules encouraging the development of additional renewable energy capacity. I encourage you to show.
With improved rules and strict enforcement reports, renewable procurement of businesses can promote permanent climate impacts and strengthen the EU’s industrial resilience.
The editor of this opinion is created in collaboration with European Sustainable Energy in 2025. For open calls, see ec.europa.eu/eusew.
Recommended links
Global Renewable Alliance: Corporate Procurement Bridging Demand and Financing: Voluntary off-take of clean energy data centre emissions is probably 662% higher than the claims of major technologies. Can you maintain the trick? See more details on the final rules for 45V GHG protocol revision: What do you review in the Scope 2 report?
About the author
Simone is the co-founder and CPO of Flexidao, the Clean Energy Intelligence Platform Provider, and is a key figure in the moving forward clean energy sourcing space. He is known for his active role in developing new standards and guidelines in collaboration with the GHG Protocol Technical Working Group, EnergyTag Initiative, Global Renewable Alliance, and the Linux Energy Foundation.
Disclaimer: This article is a contribution from a partner. Unauthorized reproduction is prohibited.
Neither the European Commission nor is it liable for any use that may be made from the information in the article by anyone acting on the Commission. The only opinion expressed is the author and should not be considered representative of the official position of the European Commission.
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