How Emission-Free Energy Certificates (EFECs) Help Companies Achieve their Carbon Goals

Article by Constellation

Incorporating sustainability into business strategies is essential for effective planning, offering benefits from cost savings to enhanced reputation and compliance with government policies. Energy managers are increasingly focused on developing strategic plans that align with their budget and carbon reduction goals. With the guidance of an energy supplier, businesses can navigate energy solutions and identify the optimal options to achieve their objectives.

There are a variety of innovative solutions businesses can easily integrate into their sustainability strategies, reducing their carbon footprints while ensuring energy consumption is aligned with clean energy sources or matched with renewable energy generation.

What are EFECs?

Emission-Free Energy Certificates (EFECs) are a cost-effective alternative to renewable energy purchases for businesses looking to reduce their carbon footprint and achieve lower emissions. Purchasing EFECs allow businesses to quickly begin their process towards achieving and claiming lower emissions. EFECs are an effective solution for:

• Companies that want to showcase their sustainability efforts and impacts, even if they haven’t established a sustainability roadmap, as they can provide a flexible and cost-effective way to support emission-free electricity generation no matter where a business is in their sustainability journey.
• Meet goals for lowering emissions associated with its annual electricity consumption.
• Demonstrate support for emission-free generation sources.
• Organizations that face challenges in sourcing power from onsite renewable sources due to land or capital limitations.

By purchasing EFECs businesses can ensure their energy consumption is matched by emission-free generation. Customers acquire emission-free attributes from various generating sources, such as nuclear, solar, wind, hydropower and more, which do not emit greenhouse gases from combustion. Most EFECs available in the voluntary market are typically associated with nuclear or large-scale hydroelectric generation.

How EFECs Optimize Your Sustainability Strategy?

When considering EFECs to meet sustainability goals, customers should focus on several key factors:

• Sustainability Focus: Is your goal to focus on renewable energy or emissions reduction? EFECs are effective for businesses aiming to reduce their carbon footprint by supporting emission-free generation sources.
• Emissions Accounting: Do you want to claim reductions in greenhouse gas emissions from your electricity consumption? EFECs allow businesses to align with market-based emissions accounting principles.
• Growing Importance in the Grid: Are you aware of the role EFECs play in maintaining lower grid emissions rates? Today nuclear generation make up nearly one-third of all electricity and over eighty-two percent of all zero-carbon electricity produced in PJM.

If these considerations align with your business objectives, gaining a deeper understanding of the role EFECs can play in your sustainability strategy is essential. Let’s explore how businesses can incorporate them to meet their goals.

1. Understanding Renewable vs. Zero-Emissions Goals.

While both renewable and zero-emissions goals are important for sustainability, they differ in their focus and implementation. EFECs track the carbon-free attributes of emission-free sources, which can include generation sources like nuclear, solar, wind and hydropower. These certificates support zero-carbon electricity generation on the grid.

However, renewable sources can differ significantly in their emissions and environmental impact. Some sources, like biomass have associated emissions and can’t be labeled as emission-free, although they are often awarded Renewable Energy Certificates (RECs).

By understanding these differences, businesses can make informed decisions about their sustainability strategies and choose the right certificates to support their goals.

2. Emissions Accounting and Customer Claims with EFECs.

The World Resource Institute (WRI) sets the greenhouse gas reporting standard that most companies use to account for their emissions, including those from purchased electricity, known as “Scope 2” emissions. This guidance includes location-based and market-based accounting methods. All energy generation tracked in the market receives certificates, whether renewable, emission-free or with other emissions rates.

Customers can buy and sell these attributes and make claims related to their energy use. For example, after purchasing an EFEC, a customer can promote their emission-free efforts as:

• Supporting demand for generation sources that do not directly emit greenhouse gases.
• Demonstrating support for energy generation with little to no emissions.
• Showing commitment to operating without adding to pollution.

EFECs can be used interchangeably for RECs in greenhouse gas emissions accounting because zero carbon is equally important across both options. If a customer’s main goal is zero carbon emissions, EFECs may be the more cost-effective option.

Through fundamental knowledge of how emissions accounting works and the claims they can make with EFECs, businesses can confidently align their sustainability strategies with their carbon reduction goals. This ensures that their efforts are not only effective but also transparent and credible.

3. The Importance of EFECs in the Overall Grid Emissions Rate.

According to the U.S. Energy Information Administration, in January 2025, 39.1% of electricity in the United States was generated from zero-carbon generation, with 54.5% of that being renewable energy such as solar, wind or hydroelectric power.^* To effectively reduce emissions from all electricity generation, it’s important to encourage new renewables and maintain existing zero-carbon generation so supply increases year over year. Several states have added nuclear power zero-emission credits to their clean power regulations. By using EFECs, customers can support all zero-carbon technologies, helping to keep the overall emissions rate of the electric grid lower and achieve broader decarbonization goals.

Energy buyers should consider these factors to ensure the credits they purchase align with their sustainability goals. Constellation can help simplify environmental goals and reporting by providing emission-free options to businesses’ electricity supply and helping them promote their benefits.

Integrating Renewable and Emission-Free Purchases for Hourly Impact

Buyers may be able to integrate their renewable energy purchases with EFECs on an hourly basis to create an hourly carbon-free matching strategy. Hourly carbon-free energy (CFE) matching allows businesses to match their energy usage with carbon-free energy on an hourly basis and from the same local grid. By matching their electricity use with a local emission-free energy source in real time, businesses can go beyond net-zero programs and eliminate the carbon impact of their operations and fully achieve zero emissions goals.

Navigating Sustainable Solutions

Understanding the role of EFECs in the grid and how they contribute to broader decarbonization goals allows businesses to make informed decisions that support their sustainability strategies and help achieve their carbon reduction objectives.

Energy experts from providers like Constellation can help you select the best products for your business and integrate them into your energy strategy, enabling you to meet your carbon reduction goals with confidence.

Learn more

* Electric Power Monthly – U.S. Energy Information Administration (EIA)

© 2025 Constellation. The offerings described herein, if applicable, are those of either Constellation NewEnergy, Inc. or Constellation NewEnergy-Gas Division, LLC, affiliates of each other. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved.