Book-and-Claim: A Critical Mechanism in the Green Energy Transition

by | Apr 2, 2025

The transition to renewable energy requires innovative approaches to overcome logistical and infrastructural constraints

One such approach is the book-and-claim system, a mechanism that allows companies to purchase environmental attributes of renewable energy separately from the physical electricity supply. This system plays a crucial role in global decarbonisation efforts, offering flexibility and scalability for organisations aiming to meet sustainability targets. However, its implementation faces regulatory hurdles, particularly in Europe, where its use is restricted due to concerns over transparency and additionality.

Understanding the Book-and-Claim Model

The book-and-claim system decouples energy consumption from its source, allowing businesses to buy certificates representing renewable energy production, even if they consume power from conventional grids. This process involves four key steps:

  • 1. Generation:

    A renewable energy producer generates electricity and receives a certificate for its environmental attributes.

  • 2. Certification:

    Independent organisations issue certificates, such as Renewable Energy Certificates (RECs) in the U.S. or Energy Attribute Certificates (EACs) globally.

  • 3. Trading:

    Companies purchase these certificates to offset their energy consumption with renewable sources.

  • 4. Retirement:

    Once used, certificates are retired to prevent double counting and ensure credibility.

This system allows companies to claim renewable energy usage without direct access to green power, providing a practical solution for organizations operating in regions where renewables are scarce, or grid access is limited.

Benefits of Book-and-Claim

The book-and-claim model provides multiple advantages:

  • 1. Global Accessibility:

    Organisations can support renewable energy projects worldwide, independent of their physical location.

  • 2. Scalability and Flexibility:

    Companies can claim renewable energy usage even in areas where clean energy infrastructure is lacking.

  • 3. Investment in Renewables:

    Creates financial incentives that drive further investments in renewable energy projects.

  • 4. Decarbonization Goals:

    Helps companies reduce Scope 2 emissions and comply with sustainability standards, such as the Greenhouse Gas (GHG) Protocol.

  • 5. Support for Hard-to-Electrify Sectors:

    Enables industries such as aviation and shipping to claim sustainability contributions through Sustainable Aviation Fuel (SAF) certificates and other renewable energy attributes.

Challenges and Regulatory Concerns

Despite its advantages, the book-and-claim model faces criticism and regulatory challenges, particularly in Europe, where its use is restricted due to concerns over credibility and additionally:

  • 1. Lack of Additionality:

    Critics argue that book-and-claim does not directly lead to additional renewable energy production, as companies may purchase existing renewable attributes rather than invest in new projects.

  • 2. Double Counting Risks:

    Without stringent oversight, the same energy attributes could be sold multiple times, undermining credibility.

  • 3. Regulatory Differences:

    In the European Union (EU), Guarantees of Origin (GOs) are the preferred tracking mechanism, requiring direct energy traceability rather than book-and-claim. The EU aims to ensure that renewable claims are tied to real, physical energy consumption.

  • 4. Consumer Transparency:

    European regulations emphasise that companies must demonstrate a tangible link between energy consumption and renewable sources to avoid greenwashing allegations.

  • 5. Market Integrity:

    Restricting book-and-claim in Europe ensures that sustainability claims are backed by verifiable data, aligning with the EU’s stricter climate policies.

Industries and Companies Utilising Book-and-Claim

Many multinational corporations and industries rely on book-and-claim to meet their renewable energy and sustainability goals. Notable examples include:

  • Google:

    Uses RECs and energy attribute certificates to maintain 100% renewable energy claims.

  • Microsoft:

    Purchases book-and-claim certificates to offset energy consumption while investing in renewable infrastructure.

  • Amazon:

    Supports sustainability efforts through certificate trading while expanding direct renewable investments.

  • Unilever:

    Relies on EACs to meet corporate sustainability commitments.

  • Aviation:

    Airbus, Lufthansa, KLM, United Airlines – Uses book-and-claim for Sustainable Aviation Fuel (SAF) certification.

  • Heavy Industry:

    BASF, Dow & Shell – Utilises book-and-claim for biofuels and low-carbon energy sourcing.

Markets That Benefit Most from Book-and-Claim

Several sectors stand to gain significantly from the book-and-claim system, particularly in regions where direct renewable energy procurement is difficult:

  • 1. Multinational Corporations:

    Facilitates sustainability commitments across diverse operational locations.

  • 2. Aviation & Maritime Shipping:

    Allows transport industries to offset emissions through SAF and biofuel certificates.

  • 3. Heavy Manufacturing:

    Enables steel, cement, and chemical industries to decarbonise supply chains.

  • 4. Data Centres & Tech Industry:

    Helps cloud computing firms meet renewable energy goals regardless of location.

  • 5. Developing Markets:

    Encourages investment in renewable projects in regions with limited grid access.

The book-and-claim system is a valuable tool in the global push toward renewable energy adoption, offering flexibility and broad market applicability. However, concerns over credibility, additionality, and regulatory integrity, especially in the EU, have led to restrictions on its implementation. While book-and-claim remains a key instrument in corporate decarbonisation strategies, its effectiveness will depend on greater transparency, regulatory alignment, and robust verification mechanisms to ensure it genuinely contributes to a cleaner energy future.

 

As industries and policymakers continue refining sustainability frameworks, the role of book-and-claim will evolve, balancing market efficiency with environmental integrity. Organisations must navigate these complexities carefully to leverage its benefits while maintaining credibility in their sustainability claims.

The post Book-and-Claim: A Critical Mechanism in the Green Energy Transition first appeared on Haush.