10 years after initial commitments, it’s time for upscaled action
Guest blog by Steven Vanholme, EKOenergy ecolabel
The Leapfrog Alliance is advancing important concepts that clean energy stakeholders have discussed, but not prioritized, over the past decade. Given various market evolutions underway, such as the revision of the Greenhouse Gas Protocol, there is an opportunity to reintroduce and insert solutions for next generation impact into voluntary renewable energy markets and greenhouse gas accounting.
Photo Credit: EKOenergy Ecolabel
For context, ten years ago, things started to change fast in the field of corporate energy sourcing. As renewables became increasingly cost-efficient and climate change's impacts became more visible, companies began to explore opportunities to become active participants in the energy transition. Various market developments emerged at that time concurrently, including:
The Greenhouse Gas Protocol’s Corporate Standard, Scope 2 Guidance: At that time, at the end of 2014, the 3-year-long discussions about the Greenhouse Gas Protocol Scope 2 Guidance concluded. The text set rules about how companies could source renewable energy and under which conditions they could claim the carbon emissions of a specific energy production installation as theirs. It offers internationally accepted guidance that has become the de-facto standard for corporate greenhouse gas accounting. This Scope 2 guidance also contains a chapter on "How companies can drive electricity supply changes" (Chapter 11), which sets forth guidance about ways for companies to go beyond the basics of renewable energy procurement and support additional positive impact. The collection of extra funds represents one of the measures listed in Chapter 11, and EKOenergy serves as a leading example of initiatives that raise extra funds for renewable energy in developing countries.
RE100: In that same period, at the NYC Climate Week 2014, the RE100 was launched: large, multinational companies committing to 100% renewable electricity. Many of the involved experts had been participating in the discussions about the Greenhouse Gas Protocol Scope 2 Guidance. After years of uncertainty and tug-of-war, they finally wanted to move into action.
I-REC scheme for renewable electricity: At the beginning of 2015, energy tracking experts from three continents launched the International Renewable Energy Certificate (I-REC) scheme to establish voluntary markets in Africa, Asia, and Latin America. The launch of the I-REC as a standard and associated activities enabled renewable electricity markets to expand quickly to more countries around the globe. The I-REC scheme has grown significantly as more corporate customers have begun procuring I-RECs across the globe.
Photo Credit: EKOenergy Ecolabel
These market developments were soon followed by the 2015 UN Summit and COP15, where world leaders agreed respectively to the 17 Sustainable Development Goals (SDGs) and the Paris Agreement for ambitious clean energy investment, climate action, and support for developing nations.
Investments in clean energy is soaring as costs decline rapidly, new incentives emerge, investment priorities shift, and diverse consumers demand more. The Greenhouse Gas Protocol has become the default standard for corporate greenhouse gas accounting best practices, RE100 has become the default leadership program in clean energy markets, and I-REC transactions have scaled swiftly across 65+ developing countries. Nevertheless, investments in clean energy continue to focus on decarbonizing existing power systems exclusively, overlooking the nearly 1 billion people living in communities worldwide with little to no existing electricity access.
The Leapfrog Alliance represents an example of the next chapter in a larger story around global climate action. This next chapter, which arguably has begun gaining momentum over the past year or two, is focused on delivering on past promises for more inclusive climate-focused investments and promoting greater clean energy access to un- and under-electrified communities.
From the perspective of EKOenergy, the Leapfrog Alliance is important because it leverages both fast-growing corporate clean energy markets in developing countries and widely-used existing voluntary frameworks—namely, the Greenhouse Gas Protocol and its provisions like Chapter 11 of the Corporate Standard, Scope 2 Guidance—that are shaping corporate clean energy procurement and investment decisions.
Photo Credit: EKOenergy Ecolabel
The Leapfrog Alliance offers important ideas by connecting the new priority and incentive structures found in existing markets with frameworks for channeling more corporate clean energy procurement to all places with energy systems that are not yet carbon-free, including in communities with little to no energy access. By enabling these un- and under-electrified communities to gain energy access that is carbon-free from the outset, they can avoid the environmental, social, and political problems that fossil energy systems create. Together, we can support communities with leapfrogging over the fossil energy system to a greener, more prosperous future.