Common myths about EACs and the truth behind them
At Nvalue, we often hear misconceptions about Energy Attribute Certificates (EACs). These certificates are central to credible renewable electricity sourcing, yet they are often misunderstood. Here, we separate fact from fiction and show how EACs can be used effectively as part of a robust decarbonisation strategy.
Common myths about EACs
Myth 1: EACs are a form of greenwashing rather than true decarbonisation
Some critics argue that buying EACs is just a box-ticking exercise; that companies purchase certificates to look greener without making any real change. When sourced and retired correctly, EACs are, however, a credible and transparent way to document renewable electricity use. They are recognised by EU law, the GHG Protocol, RE100, SBTi, and CDP (to name a few) as the standard instrument for market-based reporting.
Proper retirement ensures that each MWh of renewable electricity generation is claimed only once, preventing double counting. Used correctly, EACs are actually the opposite of greenwashing; building trust with stakeholders and strengthening corporate sustainability reporting.
Myth 2: EACs and carbon credits are basically the same thing
This is another common misunderstanding, often coupled with the idea that certificates are only about appearances. Due to the fact that both EACs and carbon credits are market-based instruments, they are sometimes seen as interchangeable.
In reality, while both instruments support climate action, they serve very different purposes:
- EACs represent the renewable attributes of 1 MWh of electricity generated from sources like wind, solar, hydro, or biomass. Retiring them allows companies to credibly claim the consumption of renewable electricity and reduce their Scope 2 emissions under the GHG Protocol. Importantly, EACs are government-backed, highly standardised instruments with strict registries that ensure traceability and prevent double counting.
- Carbon credits represent a certified reduction or removal of greenhouse gas emissions, usually measured in tonnes of CO₂ equivalent. They can come from projects such as reforestation, carbon capture, or renewable energy deployment. While valuable, the quality and accuracy of carbon credits can vary significantly, depending on the methodology, project design, and verification standard.
Confusing the two can undermine a company’s climate strategy. EACs are about how you source your electricity and are anchored in government-regulated frameworks, while carbon credits are about offsetting emissions elsewhere and may differ in credibility. Understanding this distinction ensures your decarbonisation plan is both accurate and aligned with international standards like the GHG Protocol and SBTi.
Myth 3: Consuming renewable electricity via EACs has no impact on climate change
Many people assume that buying EACs is meaningless because companies are just buying certificates, not the physical electricity itself. This idea comes from a misunderstanding of how renewable electricity is tracked and claimed.
In regions where tracking systems exist, every unit of renewable electricity sold is coupled with an EAC; the certificate that proves its renewable origin. Without the certificate, renewable electricity cannot be claimed as such. While it’s true that once electricity enters the grid all electrons mix together, EACs are the contractual mechanism that makes renewable sourcing visible, traceable, and claimable.
Hence, EACs are not just paperwork; they are a market tool. When companies purchase and retire them, they create demand for renewable electricity over fossil fuels. This demand provides revenue certainty for renewable energy producers, improving the profitability of projects and supporting the growth of new capacity.
By using EACs, companies directly support the expansion of renewable generation and can credibly report reductions in their market-based Scope 2 emissions. Over time, this demand-driven mechanism helps increase the share of renewables in the overall energy mix and reduce dependence on fossil fuels.
Which leads into the next point: while EACs have real value in reducing emissions, they do so in a very specific way and that’s where another common misconception arises.
Myth 4: EACs allow companies to completely eliminate their CO₂ emissions
Because EACs are used to make renewable electricity claims, some assume they can magically erase a company’s entire carbon footprint. This has led to the belief that simply buying certificates is enough to declare full carbon neutrality.
Though EACs play a very specific, and valuable role, they simply prove that the electricity an organisation consumes comes from renewable sources, and under the GHG Protocol they directly reduce market-based Scope 2 emissions. They do not replace efforts to reduce emissions at the source, nor do they imply a structural transformation of the company to eliminate its greenhouse gas emissions. That said, when a company sources and retires enough EACs to match its electricity use, it can legitimately report its market-based Scope 2 emissions as zero. This is because purchasing and retiring EACs represents a verified contribution of renewable electricity to the grid, which the company can then claim against its own consumption.
Additionally, electricity is only one part of a company’s overall footprint. EACs do not replace efforts to cut emissions at the source or address other scopes, but they are a recognised and essential step in any serious decarbonisation strategy.
Framing EACs correctly highlights their strength: they are the government-backed, audit-ready tool for reducing Scope 2 emissions today. Used strategically, they help companies make measurable progress on their climate targets while laying the foundation for deeper structural changes.
Myth 5 : All EACs are the same
Lastly, it’s true that all EACs certify that 1 MWh of renewable electricity has been generated. That is the common foundation, and what makes them a credible, standardised tool worldwide. But beyond that, EACs can differ in important ways:
- Market frameworks – In Europe they are called Guarantees of Origin (GOs), in the UK REGOs, in North America RECs, and internationally I-RECs. Each system has its own registry, rules, and level of recognition.
- Generation sources – EACs can come from different renewable technologies (wind, solar, hydro, biomass), which may carry different perceptions of impact.
- Policy support – Some certificates come from projects backed by government subsidies, others from unsubsidised or merchant projects.
- Added value – Some EACs can be combined with ecolabels such as EKOenergy which add environmental and social co-benefits beyond the MWh itself.
What you can always be sure of is that 1 MWh of renewable electricity was produced. But how that certificate is valued, financially, strategically, and reputationally, depends on the market, the generation source, and any additional labels attached. Understanding these differences allows companies to select certificates that best align with their climate strategy and stakeholder expectations.
Best practices to fully leverage EACs
To unlock the full potential of EACs, companies can go beyond basic compliance and adopt a structured, strategic approach:
- Integrate into your wider strategy
EACs are most effective when part of a complete plan that also includes reducing emissions at the source and improving energy efficiency. Together, these measures create a resilient, long-term decarbonisation pathway. - Choose quality and relevance
All EACs represent 1 MWh of renewable generation, but they differ by market, source, and recognition. Building a portfolio of high-quality, transparently tracked certificates from the right regions and systems ensures your claims are both credible and audit-ready. - Educate your teams
Because EACs are technical, internal teams across sustainability, communications, procurement, and finance need to understand how they work and how to talk about them accurately. This prevents miscommunication and reinforces trust with stakeholders. - Work with experts
Markets evolve quickly, and regulations are tightening. Partnering with experienced intermediaries helps you avoid costly mistakes, source certificates strategically, and position your company ahead of both compliance requirements and stakeholder expectations.
Nvalue: supporting your decarbonisation journey
At Nvalue, we guide businesses with confidence on their path to Net Zero.
Our team of specialists helps you design and implement a robust sustainability strategy, including the procurement and management of tailored Energy Attribute Certificates (EACs). Whether you’re initiating your sustainability efforts or accelerating existing commitments, we provide customised expertise and solutions to meet your needs.
Get in touch with us today to start building a credible, transparent, and effective Net Zero roadmap.