crs green-e leed presentation 11 1-12 final

LEED RENEWABLE ENERGYLEED, RENEWABLE ENERGY,AND CARBON OFFSETSHOW THE LEED v4 STANDARDWILL IMPACT YOUR RENEWABLEENERGY AND OFFSET STRATEGY

Nov. 1, 2012

Brief Intros to LEED and Green-e

Green-e in the Current (‘09) versions of LEED E Green e in the Current ( 09) versions of LEED Rating Systems

LEED v.4 Green Power and Carbon Offsets PointIN LEED v.4 Green Power and Carbon Offsets Point

Green-e “equivalence”

Effect of LEED v4 on Renewable Energy and TL Effect of LEED v4 on Renewable Energy and Carbon Offset Markets

Summary/ConclusionsOU

T

Summary/Conclusions

Q&AO

2 St d d2 StandardsWorking TogetherWorking TogetherLEED is an independent certification for green building design, construction, operations and maintenance.

Green‐e is a family of independent certification programs, for renewable energy carbon offsets and theenergy, carbon offsets, and the companies and products that use them to reduce their environmental impact.

2 St d d2 StandardsWorking TogetherWorking Together


The leading certification for renewable energy in North America. Works with renewable energy sellers to offer consumers nationwide clean, renewable electricity that has been independently verified, as a viable alternative to conventional electricity and the impacts of its

tigeneration.Certifies the following renewable energy products:• Renewable Energy Certificates,• Utility Green Pricing Programs andUtility Green Pricing Programs, and • Competitive Electricity Products.


The only independent certification for retail carbon offsets. Strengthens the market for voluntary emissions reductions by certifying that carbon offsets sold in the retail market contain real, verified reductions from high‐quality and additional projects, verifying the sales d d li f h ff d b i i h i f iand correct delivery of the offsets, and by reviewing the information

provided to offset consumers for adequacy and accuracy.

G GLEED 2009

Green Power and Green-e inLEED 2009

NC, C&S, Schools, Retail, Healthcare (1 pt) – EA CREDIT: GREEN POWER(maximum 2 points)

• “as defined by the … Green‐e Energy product certification requirements or an equivalent.”q q

• “Engage in at least a 2‐year renewable energy contract”

• “at least 35% of the building’s electricity from renewable sources”

G GLEED 2009


CI – EA CREDIT: GREEN POWER(maximum 5 points)

• Option 1: 2‐year renewable energy contract to provide at least 50% of the tenant’s electricity from renewable sources”

• Option 2: “2‐year renewable energy contract to purchase at least 8 kilowatt hours per square foot per year”

G GLEED 2009


EBOM – EA CREDIT: ON‐SITE AND OFF‐SITE RENEWABLE ENERGY(maximum 6 points)

• “Off‐site renewable energy sources are defined by the … Green‐e Energy program … or the equivalent.”

“ h REC f i i f 2 d l k• “… purchase RECs for a minimum of 2 years and must also make a commitment to purchase RECs on an ongoing basis beyond that.”

• Up to 6 points are awarded for purchases of 25% to 100% REUp to 6 points are awarded for purchases of 25% to 100% RE

LEED v4LEED v4Stronger Green Power ObligationsI t d i C b Off tIntroducing Carbon Offsets

Green-e Energy • Green-e Climate

• Building Design and Construction (BD&C)

LEED 2009 Rating Systems LEED v.4 Rating Systems

(BD&C)• Existing Building Operations and Maintenance (EBOM)I t i D i d C t ti• Interior Design and Construction (ID&C)

• HomesN i hb h d D l t (ND)• Neighborhood Development (ND)


Green-e Energy • Green-e ClimateBD&C and ID&C – EA CREDIT: GREEN POWER AND CARBON OFFSETS(maximum 2 points)

• “resources that have come online since January 1, 2005”

• “contract […] for a minimum of five years, […] delivered at least annually”

• “provision of at least 50% or 100% of the project’s energy from green• provision of at least 50% or 100% of the project s energy from green power, carbon offsets, or renewable energy certificates (RECs)”

• “Green power and RECs must be Green‐e Energy certified or the equivalent RECs can only be used to mitigate the effects of Scope 2equivalent. RECs can only be used to mitigate the effects of Scope 2, electricity use.”



• “Carbon offsets may be used to mitigate Scope 1 or Scope 2 emissions on a metric ton of carbon dioxide–equivalent basis and must be Green‐e Climate certified, or the equivalent.”

• “For U.S. projects, the offsets must be from […] projects within the United States.”



“Determine the percentage of green power or offsets based on the quantity of energy consumed, not the cost. Points are awarded according to Table 1.”

Table 1. Points for energy from green power or carbon offsetsPercentage of total energy addressed by green power, RECs and/or offsets Points50% 1 100% 2

gy g p

100% 2


Green-e Energy • Green-e ClimateEBOM – EA CREDIT: RENEWABLE ENERGY AND CARBON OFFSETS(maximum 5 points)

“Demonstrate one or both of the following for at least a portion of the building’s total energy use. • Total energy use is met directly with renewable energy systems. • A minimum two‐year contract is in place, with the commitment to renew on an ongoing basis, to purchase qualified resources that will be delivered at least annually. Resources must have come online after January 1 2005 ”January 1, 2005.”


Green-e Energy • Green-e ClimateEBOM – EA CREDIT: RENEWABLE ENERGY AND CARBON OFFSETS(maximum 5 points)

• If the second option, then “engage in a contract to purchase green power, carbon offsets, or Renewable Energy Certificates (RECs).”

• RECs for Scope 2 only; offsets for Scopes 1 or 2

• “Green power and RECs must be Green‐e Energy certified or the equivalent” and “Carbon offsets […] must be Green‐e Climate certified, or the equivalent.”

• “For U S projects the offsets must be from [ ] projects within the United• “For U.S. projects, the offsets must be from […] projects within the United States.”


Green-e Energy • Green-e ClimateEBOM – EA CREDIT: RENEWABLE ENERGY AND CARBON OFFSETS

“Use the following equation to calculate credit, up to the 5‐point limit:”

Renewable energy generated %

Energy purchased/offset % (Not to exceed 100%)

Points =generated %

1.5%

(Not to exceed 100%)

25%+

What is What is “equivalent” to Green e?or to Green-e?or

LEED 2009 says: “ f f d“If … not Green‐e Energy certified, equivalence must exist for … : 1) current

f d d d )green power performance standards, and 2) independent, third‐party verification...”

What is What is “equivalent” to Green e?or to Green-e?or• Resource eligibility

• All attributes included

• Double counting prevention

• Annual verification

• Customer disclosure

Includes:

• Claims enforcement


• Standalone tracking system REC retirement

• ‘Green‐e Energy Eligible’ facility

• ‘CertifiABLE’ RECs ≠CertifiABLE RECs

• RE w/out carbon value

• Null power claimed as RENull power claimed as RE


≠Project certification alone


American Carbon Registry (ACR) VERs

≠American Carbon Registry (ACR) VERs

Clean Development Mechanism (CDM) CERsClimate Action Reserve CRTs

Gold Standard VERsGold Standard VERsVerified Carbon Standard (VCS) VCUs

…alone


Carbon Offset Market OversightCarbon offset

projectGreenhouse gas

emissions reductionRetail carbon offset product

End‐use consumer

Carbon Offset Market ‐ Oversight





End‐use consumer


h l l h i

Registry account‐holders/retailers

• Set a standard for project eligibility The Clean Development Mechanism

The Climate Action ReserveThe Gold Standard

The Verified Carbon Standard

project eligibility

• Certify the GHG emissions reduction

• Issue credits

• Verify chain of custody from the project to account‐holders/retailers in registries





End‐use consumer


h l l h i


The Clean Development MechanismThe Climate Action Reserve

The Gold StandardThe Verified Carbon Standard

• Permanence

• Additionality• Verified• EnforceableEnforceable

• Real





End‐use consumer


h l l h i




• Permanence

• Additionality• Verified• Enforceable

Looks for the Green‐e Logo

Enforceable

• Real

What is Carbon offset



End‐use consumer

What is “equivalent” to Green e?orproject emissions reduction offset product consumer


to Green-e?or• Permanence

• Additionality• Verified



Looks for the Green‐e Logo

• Enforceable • Real

• Certifies the retail carbon offset product

• Looks back at the chain of custody to:

Set a standard for project standard eligibility

Verify chain of custody from project to end user in registriesy y p j g

• Verifies the retail transaction for correct delivery and unique ownership


Clean Development Mechanism (CDM) CERsClimate Action Reserve CRTs

=Gold Standard VERs

Verified Carbon Standard (VCS) VCUs

+Additional crucial protections and

assurances related to the retailer and

+

the transaction

LEED v4LEED v4Effect on the Markets ect o t e a ets

for Renewable Energy and Carbon Offsets

• Importance of long‐term purchasing will be addressed, transition may not be smooth

• Per MWh prices for long term REC contracts higher and prices• Per‐MWh prices for long‐term REC contracts higher, and prices already likely to rise as market demand meets supply

• Utility green electricity programs may benefit, as long‐term y g y p g y gparticipation is easier and poses less risk

• Number of buildings choosing the point likely to decrease vsi LEED 2009 l i th f RE MWh f LEEDusing LEED 2009, slowing growth of RE MWh for LEED

LEED v4LEED v4Effect on the Markets ect o t e a ets

for Renewable Energy and Carbon Offsets

• Competition between RE and offsets for electricity emissions

• Offset markets will benefit overall

• Renewable MWh still chosen for electricity due to price

• Total emissions addressed by LEED buildings, and purchases of offsets and renewable MWh will rise overalloffsets and renewable MWh, will rise overall

• International projects benefit, as point can be met with offsets rather than only US RECs

SSummaryand Conclusionsand Conclusions

• Green power/Renewable Energy and Carbon Offset points in 3 of 5 new LEED rating systemsg y

• 2 possible points in BD&C and ID&C, and 4 possible points for RE or offset in EBOM (up to 5 total with on‐site RE)

• 50 or 100% of energy use in BD&C and ID&C, 0‐100% in EBOM

• 2005 online date

• 5‐year commitments in BD&C and ID&C, 2‐year commitment with renewal in EBOM

G E tifi ti i d f d REC• Green‐e Energy certification required for green power and RECs

SSummaryand Conclusionsand Conclusions

• Green‐e Climate certification required for carbon offsets

Off t f US b ildi t ith US ff t• Offsets for US buildings met with US offsets

• REC ownership/retirement required for all renewable energy usage claims in the US

• There is no “equivalent” Green‐e; purchasers of uncertified products will need to demonstrate assurances; project certifications l i lalone are not equivalent

• RE and offset markets likely to grow; RE perhaps more slowly

C t f RE i i t ill i lik l t i b l ff t i• Cost of RE in point will increase, likely to remain below offset prices

CONTACTTodd JonesGreen-e Climate ManagerCenter for Resource [email protected]

Alex PennockGreen-e Energy ManagerCenter for Resource [email protected]@resource solutions.org

@greenemarktplc@greenemarktplc

facebook.com/CenterForResourceSolutions

crs green-e leed presentation 11 1-12 final

Environment