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GGCS REA Green Gas Forum Insights Jan 2024

In the GGCS REA Green Gas Forum of January 2024, key topics discussed include high-level figures, current policy issues, the number of GGCS producer and trader accounts, RGGOs retired by year and quarter, market information, demand for RGGOs, updates on GHGP and SBTi, and details on the Union Database for Biofuels. The forum highlights the importance of GHG reporting rules, GHG Protocol guidance, and upcoming decisions in emission reporting standards. Recommendations are made to stay informed through GHGP updates and to engage with industry-related organizations for market impact assessments.

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GGCS REA Green Gas Forum Insights Jan 2024

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  1. Update from the GGCS REA Green Gas Forum January 2024 v1.0

  2. 2 Intro • GGCS is run by REAL – a subsidiary of REA • Contact me any time jscharf@greengas.org.uk (Sara will put you in touch with me) • Todays topics – High level figures – Current policy issues

  3. 3 Number of GGCS Producer Accounts 120 111 98 100 78 80 64 63 60 53 44 40 24 20 15 4 1 1 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

  4. 4 Number of GGCS Trader Accounts 120 112 98 100 85 80 70 62 60 42 40 32 20 20 12 3 1 1 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

  5. 5 RGGOs Retired by Year 5,000 4,476 4,500 4,000 3,444 3,500 GWh 3,000 2,586 2,379 2,500 2,122 2,000 1,613 1,500 1,000 834 500 154 91 29 7 - - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

  6. 6 RGGOs Retired by Quarter 1,400 1,312 1,219 1,154 1,200 1,145 1,000 900 865 843 800 GWh 668 657 649 646 593 592 591 557 600 545 498 476 400 200 - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2024

  7. 7 RGGO Price Reports • Market Information - Certificates - Green Gas Certification Scheme

  8. 8 Demand for RGGOs • 10-15 large corporates make up 50% of demand • Those consumers sensitive to GHG reporting rules e.g. GHG Protocol and the Science Based Target Initiative, rules for both are in flux • Other strong demand from Germany where rules on what is eligible to EU ETS sites has been changing • And the introduction of the Union Database for Biofuels (UDB) has also caused some concern

  9. 9 GHGP Recap • Kicked off in 2020 • Draft guidance circulated but backed off including RGGOs as topic in next draft • Status is an “interim statement” online. – “no definitive guidance on this question under the GHG Protocol". – “In the absence of guidance, companies purchasing certificates may wish to consult with their auditors and consider rules provided by relevant target-setting programs or applicable regulatory schemes in their jurisdiction(s) on how to report these purchases in their reports, while ensuring full transparency and following all GHG accounting and reporting principles."

  10. 10 GHGP GHGP mid way through a full review of all their guidance with aim of bring together 19(!) guidance and standards documents published sporadically over 20 years on different topics, into a coherent single document covering all emission reporting. Expecting some decision on Scope 2 (electricity use) this year. Other decisions coming in 2025 (according to current timeline) GGCS and REA update members with new information as we get it but strongly recommend getting the emails from GHGP - https://ghgprotocol.org/subscribe - GHGP is THE standard for GHG reporting you and your fate is in their hands! They are forming new TWGs and steering committees now – ERGAR, EFET, EUROGAS, EBA all applying to join. Voice of biomethane/renewable gas is getting stronger within the GHGP but there will be more battles to come. • • • • •

  11. 11 SBTi • 1000’s companies have set net zero targets agreed with the SBTi • How target is measured is using the GHGP • SBTi state that RGGOs don’t effect scope 1 emissions • Ran a call for evidence in Nov 23 on use of RGGO/REGO/GOO and all Certs (power and gas) • GGCS and others submitted large amount of evidence. • Expect reply back later this year. • https://sciencebasedtargets.org/newsletter - another strong recommendation for a newsletter to be sign up to.

  12. 12 UDB Introduced as concept in RED II (published 2018) European Commission have been working on details and concept has changed many times. RED III (update to RED II) came into force in Autumn 2023 and further details of UDB announced. Many rumours (based on poor communication from the EC) that UK would not be able to mass balance into EU using Voluntary Schemes from Dec 23. After much digging turns out this is not correct and any impact will be in Nov 24 (unless further delays are agreed or the UK and EC agree on how UK can engage with the UDB). Note that this impacts the mass balance of biomethane as evidenced with an EC approved Voluntary Scheme i.e. ISCC, GGCS understands that RGGOS are often linked to this value chain. It is an important part of the market but a reminder it is not the only market. GGCS is engaging with UK gov on this topic as are some people in industry – more to say when we get more info. RGGO market is linked to EU policy, German national policy on ETS, developments in GoO market and other factors. GGCS core role is to administer the scheme. We invest a lot of time on behalf of member monitoring EU policy but and cannot stay across it all. That is a full time job and the role of ERGaR – European Renewable Gas Registry – we are members and we recommend that those with a significant exposure to the EU market consider joining. • • • • • • • • •

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