Scope 3 decarbonization through environmental attribute certificates
Reducing greenhouse gas emissions from economic activity is a growing priority for companies globally in support of corporate net-zero targets. Scope 3 emissions—those occurring throughout a company’s value chain—are not only the largest share of most companies’ carbon liability, but also the most d...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Carbon Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/17583004.2025.2486624 |
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| _version_ | 1849701475956031488 |
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| author | Michael E. Raynor Sanjith Gopalakrishnan |
| author_facet | Michael E. Raynor Sanjith Gopalakrishnan |
| author_sort | Michael E. Raynor |
| collection | DOAJ |
| description | Reducing greenhouse gas emissions from economic activity is a growing priority for companies globally in support of corporate net-zero targets. Scope 3 emissions—those occurring throughout a company’s value chain—are not only the largest share of most companies’ carbon liability, but also the most difficult to address. The prescribed approach relies on “supplier engagement,” a catch-all term that includes everything from moral suasion to economic subsidy. However, this often fails to extend beyond first- and second-tier suppliers. This leaves the bulk of upstream emissions—generated by deep-tier, hard-to-abate commodity producers—unaddressed. Environmental Attribute Certificates (EACs) are market-based instruments representing verified environmental attributes (e.g., the quantity of GHG emissions per unit of production) linked to specific upstream commodities. We propose that by enabling downstream firms to purchase these certificates and claim verified decarbonization benefits independent of physical supply chain flows, EACs can support an insetting regime that bridges supply chain distances and provides a scalable pathway to Scope 3 decarbonization. Whether through bilateral deals or inclusive market platforms, EACs can offer demand guarantees and price stability to producers of hard-to-abate commodities, supporting investment in low-carbon technologies. Critical implementation issues such as responsibility accounting, double counting, and frameworks to ensure credibility are also acknowledged. |
| format | Article |
| id | doaj-art-dc5b185b0a9b4aafa356aa439d03e164 |
| institution | DOAJ |
| issn | 1758-3004 1758-3012 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Carbon Management |
| spelling | doaj-art-dc5b185b0a9b4aafa356aa439d03e1642025-08-20T03:17:55ZengTaylor & Francis GroupCarbon Management1758-30041758-30122025-12-0116110.1080/17583004.2025.2486624Scope 3 decarbonization through environmental attribute certificatesMichael E. Raynor0Sanjith Gopalakrishnan1S3 Markets, Inc, Ontario, CanadaDesautels Faculty of Management, McGill University, Quebec, CanadaReducing greenhouse gas emissions from economic activity is a growing priority for companies globally in support of corporate net-zero targets. Scope 3 emissions—those occurring throughout a company’s value chain—are not only the largest share of most companies’ carbon liability, but also the most difficult to address. The prescribed approach relies on “supplier engagement,” a catch-all term that includes everything from moral suasion to economic subsidy. However, this often fails to extend beyond first- and second-tier suppliers. This leaves the bulk of upstream emissions—generated by deep-tier, hard-to-abate commodity producers—unaddressed. Environmental Attribute Certificates (EACs) are market-based instruments representing verified environmental attributes (e.g., the quantity of GHG emissions per unit of production) linked to specific upstream commodities. We propose that by enabling downstream firms to purchase these certificates and claim verified decarbonization benefits independent of physical supply chain flows, EACs can support an insetting regime that bridges supply chain distances and provides a scalable pathway to Scope 3 decarbonization. Whether through bilateral deals or inclusive market platforms, EACs can offer demand guarantees and price stability to producers of hard-to-abate commodities, supporting investment in low-carbon technologies. Critical implementation issues such as responsibility accounting, double counting, and frameworks to ensure credibility are also acknowledged.https://www.tandfonline.com/doi/10.1080/17583004.2025.2486624Scope 3supply chainsenvironmental attribute certificatesrenewable energy certificates |
| spellingShingle | Michael E. Raynor Sanjith Gopalakrishnan Scope 3 decarbonization through environmental attribute certificates Carbon Management Scope 3 supply chains environmental attribute certificates renewable energy certificates |
| title | Scope 3 decarbonization through environmental attribute certificates |
| title_full | Scope 3 decarbonization through environmental attribute certificates |
| title_fullStr | Scope 3 decarbonization through environmental attribute certificates |
| title_full_unstemmed | Scope 3 decarbonization through environmental attribute certificates |
| title_short | Scope 3 decarbonization through environmental attribute certificates |
| title_sort | scope 3 decarbonization through environmental attribute certificates |
| topic | Scope 3 supply chains environmental attribute certificates renewable energy certificates |
| url | https://www.tandfonline.com/doi/10.1080/17583004.2025.2486624 |
| work_keys_str_mv | AT michaeleraynor scope3decarbonizationthroughenvironmentalattributecertificates AT sanjithgopalakrishnan scope3decarbonizationthroughenvironmentalattributecertificates |