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    EcoHedge
    Energy

    What is Renewable Energy?

    Energy from sources that are naturally replenished, including solar, wind, hydroelectric, and biomass. Switching to renewable energy is one of the most effective ways to reduce Scope 2 emissions.

    Why it matters

    Switching to a renewable electricity tariff is often the single fastest way to reduce a company's reported carbon footprint. It directly lowers Scope 2 emissions under the market-based method and demonstrates commitment to decarbonisation to stakeholders.

    Example

    A warehouse operator switches to a 100% REGO-backed renewable electricity tariff. Its market-based Scope 2 emissions drop from 95 tCO₂e to zero, while the location-based figure (used for benchmarking) remains at 95 tCO₂e.

    Related terms

    Scope 2 Emissions

    Indirect greenhouse gas emissions from the generation of purchased energy consumed by an organisation. This includes electricity, steam, heating, and cooling purchased from utility providers. Scope 2 can be calculated using location-based or market-based methods.

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