EU: Reinforced Guarantees of Origin for Green Energy

The European Commission has approved Guarantees of Origin (GOs) as the main method for certifying renewable energy consumption, in line with the EU taxonomy. This measure requires companies to report on 'contractual agreements' related to energy consumption, under the new European Sustainability Reporting Standards (ESRS).

Share:

The recently adopted European Sustainability Reporting Standards (ESRS) have made market-based energy consumption reporting mandatory for around 50,000 companies. They could stimulate demand for Guaranteed Origin (GO) products.

EU Taxonomy and Guarantees of Origin: New Energy Tracking System

The European Commission (EC) has approved Guarantees of Origin (GOs) as the primary method for proving renewable energy consumption in line with EU taxonomy by requiring companies to report on “contractual agreements” for energy consumption under the new European Sustainability Reporting Standards (ESRS). This decision could boost demand for documented renewable energies. At the same time, reporting standards could increase the cost of capital for companies that fail to demonstrate clean energy consumption using GMOs.

ESRSs are delegated acts under the Corporate Sustainability Reporting Directive (CSRD), which introduces new disclosure obligations relating to environmental, governance and social issues for almost 50,000 EU companies. As part of energy reporting, the ESRS requires entities covered by the directive to disclose both location-related emissions. As well as market-related sales from purchased electricity, heating and cooling, known as Scope 2. Importantly, the ESRS establishes the method-based market as the only mandatory method of disclosing energy consumption. Entities falling within the scope of the CSRD must demonstrate the use of renewable energies by means of contractual instruments such as GAs.

In appendix 1, page 87, the standards specify that companies should only consider energy consumption “as coming from renewable sources if the origin of the energy purchased is clearly defined in the contractual agreements with their suppliers”.

The ESRS will provide financial entities with essential information on corporate sustainability performance as a basis for investment allocation. The European Investment Bank (EIB). For example, has recently adopted guidelines for assessing investment projects in relation to their alignment with the EU taxonomy.

“The ESRS is a significant sign that the European Commission supports Guarantees of Origin (GOs), the world’s most mature energy tracking system. The purchase of GOs will align companies’ energy consumption taxonomy, increasing their attractiveness to investors. Failure to comply will result in higher capital costs. In other words, not buying documented renewable energy will become increasingly costly and unprofitable. We expect the new reporting criteria to increase companies’ demand for GAs,” says Tom Lindberg, CEO of Ecohz.

Between 2015 and 2024, four multilateral climate funds committed nearly eight bn USD to clean energy, attracting private capital through concessional terms while Africa and Asia absorbed more than half of the volume.
The Global Energy Policies Hub shows that strategic reserves, gas obligations, cybersecurity and critical-mineral policies are expanding rapidly, lifting oil coverage to 98 % of world imports.
According to a report by Ember, the Chinese government’s appliance trade-in campaign could double residential air-conditioner efficiency gains in 2025 and trim up to USD943mn from household electricity spending this year.
Washington is examining sectoral taxes on polysilicon and drones, two supply chains dominated by China, after triggering Section 232 to measure industrial dependency risks.
The 2025-2034 development plan presented by Terna includes strengthening Sicily’s grid, new interconnections, and major projects to support the region’s growing renewable energy capacity.
Terna and NPC Ukrenergo have concluded a three-year partnership in Rome aimed at strengthening the integration of the Ukrainian grid into the pan-European system, with an in-depth exchange of technological and regulatory expertise.
GE Vernova has secured a major contract to modernise the Kühmoos substation in Germany, enhancing grid reliability and integration capacity for power flows between Germany, France and Switzerland.
The National Energy System Operator forecasts electricity demand to rise to 785 TWh by 2050, underlining the need to modernise grids and integrate more clean energy to support the UK’s energy transition.
Terna has signed a guarantee agreement with SACE and the European Investment Bank to finance the Adriatic Link project, totalling approximately €1bn ($1.08bn) and validated as a major transaction under Italian regulations.
India unveils a series of reforms on oil and gas contracts, introducing a fiscal stability clause to enhance the sector’s attractiveness for foreign companies and boost its growth ambitions in upstream energy.
The European Commission is launching a special fund of EUR2.3bn ($2.5bn) to boost Ukraine’s reconstruction and attract private capital to the energy and infrastructure sectors.
Asia dominated global new renewable energy capacity in 2024 with 71% of installations, while Africa recorded limited growth of only 7.2%, according to the latest annual report from IRENA.
US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.