European Union: 43 Organisations Press Brussels to Count PPAs & GOs in Carbon Accounting

Over 40 stakeholders investing in Europe’s industrial base and energy transition has urged the Danish Presidency of the Council of the EU and the European Commission 

to end uncertainty over how power purchase agreements (PPAs) and guarantees of origin (GOs) are treated in EU sustainability rules. The group wants a clear, consistent legal approach that recognises these corporate procurement tools within product carbon accounting.

They call for a uniform methodology across all relevant files—starting with EV battery rules and PV module requirements—and aligned with the Clean Industrial Deal objective of stabilising energy prices. Recognising PPAs and GOs, they argue, would cut emissions, unlock private capital for clean power, and support market-based decarbonisation on carbon-intensive grids.

The appeal comes amid delays linked to methodological debates, notably the EV Batteries Delegated Act and PV Ecodesign rules, while new measures that rely on carbon metrics—CBAM and the Industrial Decarbonisation Acceleration Act (IDAA)—are being rolled out. The coalition warns that an unclear framework deters private investment and risks slowing progress toward 2030 and 2050 climate and energy-security goals.

Why recognition matters

• Investment: PPAs mobilise private finance, hedge price volatility, and let industry decarbonise on fossil-heavy grids.

• Consistency: If RED III promotes PPAs, carbon methodologies across Batteries Regulation, Ecodesign, CBAM, IDAA, and related rules should accept them too.

• Efficiency: Harmonised accounting reduces administrative burden and improves transparency—key to the EU’s cutting red tape agenda.

  
  

The signatories back enforceable, high-quality criteria and robust verification for PPAs and GOs to ensure genuine decarbonisation. Without such recognition, companies in higher-carbon member states would be placed at a competitive disadvantage, and Europe could stall private investment needed to decarbonise grids and lower energy costs.