Guarantee of Origin
"Do not forget: even a small deed might start off a massive change" – Dalai Lama
In our modern world, social and environmental responsibilities of enterprises are coming to the fore-front. Sadly, Hungarian SMEs (small and medium enterprises) do not think about the environmental footprint of their activities, when it comes to electricity used, although as electricity users, they should do so.
The ESG movement intends to quantify the environmental, social and governance impacts of enterprises. The so-called carbon footprint or similar emission issues are well known factors in the life of many enterprises, but the same standards does not seem to apply to energy usage generally.
We at V-Energy belive that ESG guidelines may be used for electricity and natural gas usage. And the certificate of origin (GO) is the best European solution in this direction.
How would it work in practice?
Supply side first:
Assume that a Norwegian hydro power plant is producing electricity from water in massive size. The local national agency is issuing certificates that such electricity was produced from renewable sources during a specific period. Such certificates, as proprietary right, belong to the hydro station and might be sold to generate extra income and this extra cash will help to generate extra renewable energy. This is the so-called certificate of origin (GO).
Demand side:
Assume that a Hungarian SME that is selling parts to a Western European car maker. The car maker is obliging its suppliers to confirm environmental impacts of the parts so produced, plus to demonstrate what steps the SME took to reduce such negative impact. First the Hungarian SME is afraid of this condition and, once recovered from the initial shock, the SME management is realising that certificate of origin (GO) would help here. The correct course of action would be to buy certificate of origin (GO) up to total electricity used during the production process and this certificate to be handed over to the Western European car maker.
The European Energy Certificate System (EECS), as operated under the umbrella of AIB, intends to guarantee that renewable production and demand are matching, and there is no misuse of certificates of origin (GO).
VIP Energy can help its clients to find the best source of certificate of origin (GO), we are matching our clients’ demand with market supply in the most efficient way.