Case study · Independent certificate & Scope 2 adviser

Closing a nine-country Scope 2 gap at the lowest credible cost

Arc Renewables advised a multinational manufacturer on a 2026 renewable energy certificate programme across its global manufacturing footprint, mapping the gap by site, sequencing procurement for cost efficiency, and designing it to pass external assurance.

At a Glance

Client

Multinational manufacturer (confidential)

Footprint

22 sites across nine countries

Q1 2026 Scope 2

2,978 tCO₂e location-based

Annualised gap

~11,900 tCO₂e

Programme target

3,000 tCO₂e oversized bonus tier

Instruments in scope

I-RECs, RECs, GOs, REGOs, CECs

Indicative spend

£19,062 to £52,472

Arc role

Independent adviser, no off-the-shelf product

The brief

A reporting target to meet, with an acquisition on the horizon

When a lender extends credit against a renewable energy asset, or an investor acquires a portfolio, or a fund underwrites a refinancing, someone has to verify that the asset is what the seller says it is. That verification is technical due diligence. It is read by credit committees, used to size loans, and referenced in transaction documentation. The signature on the report matters.

Three questions had to be answered before any purchase. Which certificate products are credible and accepted in each country. Whether to buy locally per site or centrally for the group. And what the external assurance provider would need to see to sign off the result. The group wanted an independent view, not a packaged product, because the answer differed by market and the reputational stakes under acquisition due diligence were real.

Our approach

The footprint first, then the strategy

Arc grounded the work in the group's own data rather than assumption. Quarter one actuals were annualised and mapped to every site, attributed by division, so the gap could be seen where it actually sat. UK and German sites already ran on green tariffs and needed no certificates. Sites with on-site solar in Cape Town, New Delhi and Olomouc had their generation netted off before the emission factor was applied, which matters because that volume cannot be claimed twice.

Each site was then ranked by tonnes of CO₂e retired per £1,000 spent at mid-market rates. That single metric reframed the procurement question. The cheapest acceptable solution and the highest-integrity solution are not the same thing, and the ranking made the trade-off explicit rather than leaving it buried in a spreadsheet.

what we deliver

Sequence beats spend

India and Mexico I-RECs deliver 4 to 8× more tCO₂e per £ than US RECs

The United States was unavoidable for the second division, but it should be the last market purchased, not the first. Buying in the right order closed both divisional bonus gaps at the lowest total cost.

The group had instructed an oversized 3,000 tCO₂e target, 816 tCO₂e above the minimum needed for the maximum bonus tier. The buffer protects against second-half consumption running above the quarter one projection. The same three markets and instruments carry the whole programme; only the quantities change.

Priority

Market

Instrument

tCO₂e per £1,000

Role in the programme

India

I-REC

578

Best value at scale. Closes one division’s bonus gap. First purchase.

Mexico

I-REC

325

Four times cheaper per tonne than the US. Buy before any US RECs.

USA

REC

Unavoidable for the second division. Buy last, once I-REC markets are exhausted.

Rates at mid-market April 2026 prices. Higher grid emission factors mean each certificate removes more CO₂e, which is why the US ranks low despite being a mature market.

How we helped

The work behind the recommendation

Arc carried the study as independent adviser, with no certificate product of its own to sell. The work ran across several strands, each feeding a programme the board could instruct with confidence.

Footprint mapping

Annualised quarter one actuals across 22 sites and nine countries, attributed by division, isolating the ~11,900 tCO₂e that certificates actually needed to cover.

Cost efficiency ranking

Ranked every site by tCO₂e retired per £1,000, exposing the 4 to 8× gap between I-REC and REC markets and the optimal buying order.

Bonus criteria analysis

Modelled the threshold, target, maximum and oversized tiers by division, confirming 3,000 tCO₂e as the right target with an 816 tCO₂e buffer.

Instrument specification

Set out the correct instrument per market, with technology and vintage requirements flagged so reputational risk under acquisition due diligence is managed.

Assurance framework

Identified what the external assurer would require: registry retirement statements, vintage compliance within the 21-month window, solar methodology, and dual location and market-based reporting.

Double-counting controls

Flagged where on-site solar and overlapping schemes could be double-claimed, with written exclusivity to be confirmed at the point of purchase in every market.

The value to the client

A programme the board can instruct

The study gives the group a costed, evidence-based route to close its 2026 certificate gap, a clear view of where the gap sits by division, and a buying sequence that reaches the target for an indicative £19,062 to £52,472 across three markets. It separates what the analysis already establishes from what live market soundings and contracting still need to confirm, so the decision to proceed rests on facts rather than estimates.

Arc's role throughout has been to give an honest, independent view shaped by the asset and the audit, not to sell a certificate product. The group retains the choice to execute the procurement itself or to instruct Arc to carry it through to assurance sign-off.

About Arc Renewables

Independent advice on renewable energy certificates and Scope 2 reporting

Regulated and accredited

RICS
ISO 9001
ISO 14001
CHAS Accreditation Standard
NAPIT
MCS

Arc Renewables advises multinational clients on renewable energy certificate procurement and Scope 2 reporting across global footprints. We work across WREGIS, Evident, I-REC and the European registries, and we design programmes to pass external assurance. We act as independent adviser, not as a certificate vendor, so the advice is shaped by the client's reporting position alone. If you have a certificate question and need to know whether the numbers hold up, we are happy to take a look.

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Independent renewable energy consultancy for UK commercial real estate. Regulated by RICS. Investor-literate advice.

0203 813 6171 info@arcrenewables.co.uk

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