The document discusses the impact of the LEED v4 standard on renewable energy and carbon offset strategies, emphasizing the collaboration between LEED and Green-e certification programs. It outlines various criteria for obtaining points under the LEED rating systems for renewable energy and carbon offsets, including guidelines for contracts and certification requirements. The summary concludes that while there is potential for growth in both renewable energy and carbon offset markets, the cost of renewable energy may rise as demand increases.

1. LEED, RENEWABLE ENERGY,
AND CARBON OFFSETS
HOW THE LEED v4 STANDARD
WILL IMPACT YOUR RENEWABLE
ENERGY AND OFFSET STRATEGY
Nov. 1, 2012

3. Brief Intros to LEED and Green-e
Green-e in the Current (‘versions of LEED
EGreen ( 09) Rating Systems
LEED v.4 Green Power and Carbon Offsets Point
IN
Green-e “equivalence”
Effect of LEED v4 on Renewable Energy and
TL
Carbon Offset Markets
Summary/Conclusions
OUT
Q&A
O

4. 2 Standards Working Together
LEED is an independent certification
for green building design, construction,
operations and maintenance.
Green‐e is a family of independent
certification programs, for renewable
energy, carbon offsets, and the
companies and products that use them
to reduce their environmental impact.

5. 2 Standards Working Together

6. 2 Standards Working Together

7. 2 Standards Working Together
The leading certification for renewable energy in North America.
Works with renewable energy sellers to offer consumers nationwide
clean, renewable electricity that has been independently verified, as a
viable alternative to conventional electricity and the impacts of its
generation.
Certifies the following renewable energy products:
• Renewable Energy Certificates,
• Utility Green Pricing Programs, and
• Competitive Electricity Products.

8. 2 Standards Working Together
The only independent certification for retail carbon offsets.
Strengthens the market for voluntary emissions reductions by certifying
that carbon offsets sold in the retail market contain real, verified
reductions from high‐quality and additional projects, verifying the sales
and correct delivery of the offsets, and by reviewing the information
provided to offset consumers for adequacy and accuracy.

9. G G LEED 2009
Green Power and Green-e in NC, C&S, Schools, Retail, Healthcare (1 pt) – EA CREDIT: GREEN POWER
(maximum 2 points)
• “as defined by the … Green‐e Energy product certification
requirements q or an equivalent.”
• “Engage in at least a 2‐year renewable energy contract”
• “at least 35% of the building’s electricity from renewable sources”

10. G G LEED 2009
Green Power and Green-e in CI – EA CREDIT: GREEN POWER
(maximum 5 points)
• Option 1: 2‐year renewable energy contract to provide at least 50% of
the tenant’s electricity from renewable sources”
• Option 2: “2‐year renewable energy contract to purchase at least 8
kilowatt hours per square foot per year”

11. G G LEED 2009
Green Power and Green-e in EBOM – EA CREDIT: ON‐SITE AND OFF‐SITE RENEWABLE ENERGY
(maximum 6 points)
• “Off‐site renewable energy sources are defined by the … Green‐e
Energy program … or the equivalent.”
• ““… purchase RECs for a minimum of 2 years and must also make a
commitment to purchase RECs on an ongoing basis beyond that.”
• Up to 6 points are awarded for purchases of 25% to 100% RE

12. LEED v4 Stronger Green Power Obligations
Introducing Carbon Offsets
Green-e Energy • Green-e Climate
LEED 2009 Rating Systems LEED v.4 Rating Systems
• Building Design and Construction
(BD&C)
• Existing Building Operations and
Maintenance (EBOM)
• Interior Design and Construction
(ID&C)
• Homes
• Neighborhood Development (ND)

13. LEED v4 Stronger Green Power Obligations
Introducing Carbon Offsets
Green-e Energy • Green-e Climate
BD&C and ID&C – EA CREDIT: GREEN POWER AND CARBON OFFSETS
(maximum 2 points)
• “resources that have come online since January 1, 2005”
• “contract […] for a minimum of five years, […] delivered at least annually”
•• “provision of at least 50% or 100% of the project’s energy from green
power, carbon offsets, or renewable energy certificates (RECs)”
• “Green power and RECs must be Green‐e Energy certified or the
equivalent. RECs can only be used to mitigate the effects of Scope 2,
electricity use.”

14. LEED v4 Stronger Green Power Obligations
Introducing Carbon Offsets
Green-e Energy • Green-e Climate
BD&C and ID&C – EA CREDIT: GREEN POWER AND CARBON OFFSETS
(maximum 2 points)
• “Carbon offsets may be used to mitigate Scope 1 or Scope 2 emissions
on a metric ton of carbon dioxide–equivalent basis and must be Green‐e
Climate certified, or the equivalent.”
• “For U.S. projects, the offsets must be from […] projects within the
United States.”

15. LEED v4 Stronger Green Power Obligations
Introducing Carbon Offsets
Green-e Energy • Green-e Climate
BD&C and ID&C – EA CREDIT: GREEN POWER AND CARBON OFFSETS
(maximum 2 points)
“Determine the percentage of green power or offsets based on the quantity
of energy consumed, not the cost. Points are awarded according to Table 1.”
Table 1. Points for energy gy from g green p
power or carbon offsets
Percentage of total energy addressed by green power,
RECs and/or offsets Points
50% 1
100% 2

16. LEED v4 Stronger Green Power Obligations
Introducing Carbon Offsets
Green-e Energy • Green-e Climate
EBOM – EA CREDIT: RENEWABLE ENERGY AND CARBON OFFSETS
(maximum 5 points)
“Demonstrate one or both of the following for at least a portion of the
building’s total energy use.
• Total energy use is met directly with renewable energy systems.
• A minimum two‐year contract is in place, with the commitment to
renew on an ongoing basis, to purchase qualified resources that will
be delivered at least annually. Resources must have come online after
January 1, 2005.””

17. LEED v4 Stronger Green Power Obligations
Introducing Carbon Offsets
Green-e Energy • Green-e Climate
EBOM – EA CREDIT: RENEWABLE ENERGY AND CARBON OFFSETS
(maximum 5 points)
• If the second option, then “engage in a contract to purchase green power,
carbon offsets, or Renewable Energy Certificates (RECs).”
• RECs for Scope 2 only; offsets for Scopes 1 or 2
• “Green power and RECs must be Green‐e Energy certified or the equivalent”
and “Carbon offsets […] must be Green‐e Climate certified, or the equivalent.”
•• ““For U.S. projects, the offsets must be from […] projects within the United
States.”

18. LEED v4 Stronger Green Power Obligations
Introducing Carbon Offsets
Green-e Energy • Green-e Climate
EBOM – EA CREDIT: RENEWABLE ENERGY AND CARBON OFFSETS
“Use the following equation to calculate credit, up to the 5‐point limit:”
Renewable energy
generated %
Energy purchased/offset %
(Not 100%)
Points =
1.5%
to exceed 25%
+

19. What is
“equivalent”
to Green e? or
Green-LEED 2009 says:
““If … not Green‐e Energy certified,
equivalence must exist for … : 1) current
green power performance standards, and 2)
independent, third‐party verification...”

20. What is
“equivalent”
to Green e? or
Green-• Resource eligibility
• All attributes included
• Double counting prevention
• Annual verification
• Customer disclosure
Includes:
• Claims enforcement

21. What is
“equivalent”
to Green e? or
Green-• Standalone tracking system REC
retirement
• ‘Green‐e Energy Eligible’ facility
• ‘CertifiABLE’ RECs
≠ CertifiABLE • RE w/out carbon value
• Null power claimed as RE

22. What is
“equivalent”
to Green e? or
Green-Project certification alone ≠

23. What is
“equivalent”
to Green e? or
Green-American ≠
Carbon Registry (ACR) VERs
Clean Development Mechanism (CDM) CERs
Climate Action Reserve CRTs
Gold Standard VERs
Verified Carbon Standard (VCS) VCUs
…alone

24. What is
“equivalent”
to Green e? or
Green-Carbon Offset Market Oversight
Carbon offset
project
Greenhouse gas
emissions reduction
Retail carbon
offset product
End‐use
consumer
‐

25. What is
“equivalent”
to Green e? or
Green-Carbon Offset Market Oversight
Carbon offset
project
Greenhouse gas
emissions reduction
Retail carbon
offset product
End‐use
consumer
‐ Registry account‐holders/
retailers
• Set a standard for
project eligibility
h The l Clean l Development h i
Mechanism
The Climate Action Reserve
The Gold Standard
The Verified Carbon Standard
• Certify the GHG
emissions reduction
• Issue credits
• Verify chain of custody
from the project to
account‐holders/
retailers in
registries

26. What is
“equivalent”
to Green e? or
Green-Carbon Offset Market Oversight
Carbon offset
project
Greenhouse gas
emissions reduction
Retail carbon
offset product
End‐use
consumer
‐ Registry account‐holders/
retailers
h The l Clean l Development h i
Mechanism
The Climate Action Reserve
The Gold Standard
The Verified Carbon Standard
• Permanence
• Additionality
• Verified
• Enforceable
• Real

27. What is
“equivalent”
to Green e? or
Green-Carbon Offset Market Oversight
Carbon offset
project
Greenhouse gas
emissions reduction
Retail carbon
offset product
End‐use
consumer
‐ Registry account‐holders/
retailers
h The l Clean l Development h i
Mechanism
The Climate Action Reserve
The Gold Standard
The Verified Carbon Standard
• Permanence
• Additionality
• Verified
• Enforceable
Looks for the
Green‐e Logo
• Real

28. What is
Carbon offset
project
or
Greenhouse gas
“equivalent”
emissions reduction
to product
Green e? Retail carbon
offset Green-retailersEnd‐use
consumer
Registry account‐holders/
• Permanence
• Additionality
• Verified
The Clean Development Mechanism
The Climate Action Reserve
The Gold Standard
The Verified Carbon Standard
Looks for the
Green‐e Logo
• Enforceable
• Real
• Certifies the retail carbon offset product
• Looks back at the chain of custody to:
 Set a standard for project standard eligibility
 Verify chain of custody y y from project to end user in registries
• Verifies the retail transaction for correct delivery and unique
ownership

29. What is
“equivalent”
to Green e? or
Green-Clean Development Mechanism (CDM) CERs
Climate Action Reserve CRTs
= Gold Standard VERs
Verified Carbon Standard (VCS) VCUs
+
Additional crucial protections and
assurances related to the retailer and
the transaction

30. ELffeEctE onD t hve 4Markets
for Renewable Energy and
Carbon Offsets
• Importance of long‐term purchasing will be addressed, transition
may not be smooth
•• Per‐MWh prices for long‐term REC contracts higher, and prices
already likely to rise as market demand meets supply
• Utility green electricity programs may benefit, as long‐term
participation is easier and poses less risk
• Number of buildings choosing the point likely to decrease vs
using LEED 2009, slowing growth of RE MWh for LEED

31. ELffeEctE onD t hve 4Markets
for Renewable Energy and
Carbon Offsets
• Competition between RE and offsets for electricity emissions
• Offset markets will benefit overall
• Renewable MWh still chosen for electricity due to price
• Total emissions addressed by LEED buildings, and purchases of
offsets and renewable MWh, will rise overall
• International projects benefit, as point can be met with offsets
rather than only US RECs

32. Summary and Conclusions
• Green power/Renewable Energy and Carbon Offset points in 3 of 5
new LEED rating systems
• 2 possible points in BD&C and ID&C, and 4 possible points for RE
or offset in EBOM (up to 5 total with on‐site RE)
• 50 or 100% of energy use in BD&C and ID&C, 0‐100% in EBOM
• 2005 online date
• 5‐year commitments in BD&C and ID&C, 2‐year commitment with
renewal in EBOM
• Green‐e Energy certification required for green power and RECs

33. Summary and Conclusions
• Green‐e Climate certification required for carbon offsets
• Offsets for US buildings met with US offsets
• REC ownership/retirement required for all renewable energy usage
claims in the US
• There is no “equivalent” Green‐e; purchasers of uncertified
products will need to demonstrate assurances; project certifications
alone are not equivalent
• RE and offset markets likely to grow; RE perhaps more slowly
• Cost of RE in point will increase, likely to remain below offset prices

34. CONTACT
Todd Jones
Green-e Climate Manager
Center for Resource Solutions
todd@resource-solutions.org
Alex Pennock
Green-e Energy Manager
Center for Resource Solutions
alex@resource-solutions.org
@greenemarktplc
facebook.com/CenterForResourceSolutions