Northmore Gordon Helps Companies Achieve Net-Zero Status for Operations In New Zealand
To add to our inventory of services, Northmore Gordon has become a registered Participant in the New Zealand Energy Certificate System (NZECS). This development enables our team of energy experts to help companies navigate the NZECS and reach net-zero status for their business operations in New Zealand.
Companies worldwide are implementing methods and pathways to support the Net-zero is a term meaning to get to zero emissions, there is no current standard on what getting to net-zero means. For governments a net-zero target is one that covers all scope 1 emissions in their jurisdiction. For business it usually covers scope 1 and 2 emissions, although some companies also include some scope 3 emissions. The Science Based Targets Initiative is currently working on a standard for companies. More movement. Alongside efforts to lower Scope 1 emissions through energy efficiency improvements, companies have the option of participating in voluntary certificate markets to claim that their energy is sourced from zero-carbon energy sources.
The New Zealand Energy Certificate System (NZECS) is one such market. Initiated in 2019 by Certified Energy, the New Zealand Energy Certificate System, the Renewable Energy Certificate registry in New Zealand managed by Certified Energy More provides a voluntary market for the buying and selling of energy attribute certificates for New Zealand-based activity. The NZECS is aligned with international greenhouse gas (Greenhouse gases trap heat in the atmosphere. They all have different global warming potentials (GWP) over different time frames, the higher the number, the worse the impact. For simplicity of accounting everything is referenced back to carbon dioxide which has a global warming potential of 1. There are over 200 GHGs listed in the IPCC fifth assessment report, a sample are below. Note that in current carbon accounting standards the 100 year GWP is used. Greenhouse gas 20 year GWP100 year GWPCarbon dioxide CO211Methane CH48428Hydrofluorocarbon HFC-134a37101300Chlorofluorocarbon CFC-1169004660Nitrous Oxide N2O264265Sulfur hexafluoride SF617,50023,500 More) reporting schemas, such as the The GHG Protocol is the most widely used greenhouse gas accounting standard for companies. It provides guidance on the calculation of scope 1, 2 and 3 emission sources. It is consistent with the ISO 14064 series of accounting standards on greenhouse gases. More. Therefore, it represents a rigorous standard for participating energy users to claim the use of renewable energy and lower their Scope 2 emissions.
As a verified NZECS Participant, Northmore Gordon can source, procure, and redeem energy certificates for companies with New Zealand operations. This enables us to better support companies on their journey to net zero and to help them develop strategies that align with their corporate values and objectives.
How the NZECS Works
The NZECS marketplace is made up of verified Registrants and Participants. Registrants generate electricity from renewable energy (or approved low-carbon technology) systems and issue energy certificates to the NZECS registry. Participants register energy users that can purchase, trade, and redeem energy certificates.
As a tradable commodity, each NZECS energy certificate (New Zealand Energy Certificate, equivalent to 1 MWh of renewable electricity More) includes the same core elements. The price is described in cost per MWh (in NZD), and the NZ-EC vintage shows the production year for the energy it represents. An NZ-EC also details the volume of MWh as well as the fuel source, technology details, and location of the production device.
The NZECS is designed to promote responsible accounting of NZ-ECs. The registry has tracking measures in place to avoid double counting of certificates. In addition, NZ-ECs must be redeemed by a Participant in the same reporting year as the energy was generated. Any issued certificates that go unused by the end of the reporting cycle are automatically cancelled.
How NZECS Participation Benefits Businesses
For a facility that is connected to the energy grid, it is impossible to assert the source for its electricity (unless the facility owns and operates its own onsite renewable energy system, such as a rooftop Solar Photovoltaic More solar system).
For comparison, imagine a large bathtub that has many small drains and numerous taps. After water comes out of a tap, it combines with the water pouring out of the other taps to form one mixture. By the time the water exits an individual drain, it is impossible to determine from which tap that water originally came.
The same goes for the electricity grid. Once the generated electricity enters the grid — whether it comes from solar, coal, or natural gas — it becomes indistinguishable from the other electricity in the mix. When electricity moves into a home, business, or industrial facility, the source of that electricity cannot be determined.
Therefore, for a facility to make any claim over the source for its grid-tied energy, the facility must purchase an NZ-EC. In that way, the NZECS offers energy users the option to showcase support for clean energy.
In addition, purchasing NZ-ECs helps companies reach their corporate sustainability goals and targets. These achievements can be highlighted in stakeholder engagement reports as well as in carbon disclosure assessments for various investor-driven reporting frameworks. Demonstrating follow-through on net-zero commitments and initiatives can help a company stand out from its peers. This competitive edge opens opportunities to strengthen economic performance and advance corporate objectives.
Accelerating the transition away from carbon-based fuels is quickly becoming both a societal and business imperative. The severity and increased frequency of extreme weather events showcase the financial and societal toll from increasing atmospheric concentrations of greenhouse gases (GHGs) like CO2 and methane.
The NZECS enables marketplace participants to support renewable energy generation and help spur additional development.
Northmore Gordon Serves As An NZECS Participant
As a registered NZECS Participant, Northmore Gordon can serve as a market intermediary for companies with New Zealand operations. This allows our team of energy experts to source, purchase, trade, and redeem NZ-ECs for our clients so that they can smoothly reach their net-zero targets.
Issued NZECS certificates represent production devices that vary by location, fuel source, and technology type. Registrants also differ in their approach to managing profits earned from NZ-EC sales. This selection diversity opens an opportunity for energy users to establish a thoughtful and intentional certificate procurement strategy.
Northmore Gordon strives to understand a company’s corporate identity to develop an energy certificate procurement strategy that aligns with the business’ values and objectives. This level of support can provide companies with the confidence to commit to more ambitious clean energy initiatives, like RE100 is the global corporate renewable energy initiative bringing together large businesses committed to 100% renewable electricity. The members must be influential based on their either their brand, global presence, significant energy use or other characteristics that bring attention to their commitment. All companies must commit to purchasing 100% of their electricity from renewable sources by 2050 and purchase that power in the same location they are using it. Interim targets are 60% by 2030 and 90% by 2040. The program is led by the Climate Group in partnership with the CDP..
The business landscape is moving toward clean energy. Northmore Gordon assists companies with deep decarbonisation efforts, and our services now include helping companies take advantage of the emerging voluntary energy certificate market in New Zealand.