1. Electricity enters the grid a a mix of renewable and fossil sources. For every 1 MWh of renewable electricity generated, an Energy Attribute Certificate (EAC) is issued with a unique identification number.
2. EACs are recorded and tracked in a recognized electronic registry, making it traceable. The registry securely tracks ownership and transactions over the certificate's life, ensuring transparency and integrity.
3. EACs can be held, sold or transferred between registered account holders, such as brokers, buyers, or aggregators. Every transfer is recorded within the registry to maintain a verifiable transaction history and prevent double counting or fraudulent reuse.
4. EACs are retired when used to substantiate corporate claims. When a company uses the EAC to substantiate an emissions reduction or renewable energy claim , it is retired to permanently removes the EAC from circulation, guaranteeing that its environmental benefits cannot be sold or claimed again.
5. EACs are used for reporting. After retirement, companies can use EACs for sustainability reporting, including corporate carbon accounting (Scope 2 emissions), renewable energy targets, or compliance with frameworks such as the Science Based Targets initiative (SBTi) and RE100.