Key industries in Europe are urging the EU to recognise corporate renewable energy procurement in carbon footprint rules.

An open letter, available here, signed by major companies from industries including batteries manufacturing, shipping, and chemicals, calls for the inclusion of corporate energy procurement tools in carbon footprint assessments. This will empower companies to reduce their emissions, regardless of the local grid carbon intensity.

The letter is also backed by renewable energy developers reliant on PPAs as a route to market, and RE100, a global standard for corporates committed to sourcing 100% renewable electricity.

The issue stems from the draft EV Batteries Delegated Act which sets out the carbon footprint methodology, and, as it stands, excludes PPAs and GOs from energy emissions calculations for EV batteries. This penalises companies operating on carbon-intensive grids by not giving them the opportunity to procure renewables and demonstrate mitigated carbon emissions.

Signatories urge the Commission to amend the draft Act, to align with the Draghi Report’s emphasis on PPAs for competitiveness and other EU policies which recognise PPAs.

The signatories recommend that the Commission follows the JRC’s electricity hierarchy in assessing scope 2 emissions, as prescribed in the Batteries Regulation.

RE-Source Platform’s Director Annie Scanlan said:

“No company should be penalised because their local grid is carbon intensive. To support Europe’s industrial and energy transition, the EU must create clear, incentive-driven policies that encourage private investment in renewable energy and avoid contradictory policies. If we want the PPA market to grow in Europe, we need a supportive regulatory framework. This diverse group of industries are taking a clear stand for the recognition of PPAs under all EU policies.”