Prepared by Winrock International’s Net Zero Climate Services Unit for the Energy Transition Accelerator Partners
In the ETA Core Framework published in November 2023, four pathways were identified that private sector buyers could potentially follow in incorporating ETA credits into their corporate climate strategies. This brief will focus on Use Case 2 in the ETA Core Framework (see Box 1), in which ETA credits are used as a means of addressing scope 3 emissions related to electricity use by a company’s suppliers. The use case considered here is an example of an emerging approach that envisions using carbon credits from mitigation activities within a company’s value chain – in this case, activities that reduce emissions from electricity used by a company’s suppliers.
The brief presents an example to illustrate the options and challenges faced by a company in addressing scope 3 emissions and shows how the ETA could provide a robust and credible way for a company to address scope 3 electricity emissions, alongside supplier engagement approaches and other types of value chain interventions, if used appropriately. This brief is not intended to produce GHG accounting or target setting guidance. The use case example and associated content in this brief could prove useful to other organizations and initiatives. Stakeholder feedback on the illustrative use case and concepts in this brief will help guide further thinking on what constitutes “appropriate use”.
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