The climate crisis is the defining challenge of our time. Since the 19th century, man-made emissions have heated the planet by about 1.1 degrees Celsius, according to the IPCC. From floods to wildfires, the impacts are felt today. But the future could be much worse. A recent UN report which analyzed national targets shows that current commitments lead the world on a pathway to 2.7 degrees Celsius end-of-century heating.

It’s not only national governments that need to act. Global corporations are acknowledging their responsibility as well. It is becoming clear that sustainability is good business — and probably even the only way of doing business going forward. Over 900 companies have set science-based targets to reduce their emissions in line with the Paris Agreement. To many businesses, one of the most important immediate steps to reduce greenhouse gas emissions is reducing emissions from power use (scope 2 emissions), by sourcing renewable energy, such as solar and wind.

Renewable energy purchasing has increased dramatically over the last years. In the U.S., over 100 corporate renewable sourcing deals making up over 10GW of capacity were executed in 2020, up from a mere 1.5 GW in 2015. In Europe, CPPAs alone amounted to 3.5GW in 2020, as traditional buyers such as tech companies contracted record volumes, while new sectors such as pharmaceuticals and retail entered the market. Also, Asia has seen recent advances, for example when TSMC and Orsted contracted 920MW — the largest CPPA to date — in Taiwan in 2020.

As the renewable energy purchasing market matures, three new trends are shaping its journey.

  1. Additionality
  2. 24/7 supply
  3. Advances in the regulatory frameworks

Read the full article about renewable energy by Alana Kühne at GreenBiz.