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There is an ancient proverb in the Arab world: “Trust in God, but tie your camel.” What is true in everyday life also goes for business. For almost everything we buy, sell, and consume, we have stringent standards, checks, and certifications. But such verification is still largely lacking for the green energy that is supposed to power the entire EU by the year 2050.

How to tell whether hydrogen has been produced from coal, by wind farms, or by hydropower stations? How to compare green fuels from different countries? And how can end customers find out whether they are buying “green” or “grey” energy? The Clean Energy Certification system now being launched by �����˿����� provides the answers.

According to Sturm, the new system has three major advantages: First of all, the certified products and applications will be recognized as fulfilling all legal requirements and regulations at the national and European levels. With the new system, it will be easier than ever to prove full legal compliance.

Secondly, end customers will be provided with information in a way that combines maximum transparency with an easily comprehensible classification system, e.g., by means of a color code. This will also benefit producers and distributors, since trustworthy and comprehensive guarantees of product origin will provide a competitive advantage, with customers preferring “green” (and innovative) over “grey” (and outdated) products. 

Last but not least, the EU will encourage the green transition by offering financial reductions and rebates for certified green energy applications. In this way, the EU aims to shield its domestic market from competitive disadvantages vis-à-vis other regions, which might undermine the EU’s high standards (“carbon leakage”). All sustainable producers, both within and outside EU, will be eligible for financial benefits granted by the EU such as customs reductions – a win-win situation for legislators (who set the standards) and green companies.

Currently, the new certification system is being used in several pilot projects. One of these involves extracting and writing real-time data from a wind turbine to a decentralized platform system. The challenges are manifold, since the certification system will operate at the intersection of policy, science, economics, and legal compliance. However, progress is substantial, and new insights are generated on a daily basis. The rollout of the new system is scheduled for as early as fall of 2022.

The EU is adopting a leadership role regarding the certification of green technologies, but sustainable energy sources are also being rapidly adopted in numerous other regions of the world. In the Middle East, for example, states that have in the past relied on fossil fuels for their own power supply and as an export commodity are now diversifying their energy systems to make better use of abundant solar power. The government of Australia is also seeking to make more use of low-emissions technologies and hopes to create 13,000 jobs in the construction of renewable energy infrastructure, as well as 16,000 jobs in the clean hydrogen business by 2050. Here, too, investors will require proof that the solutions employed are truly sustainable.

Since the new certification system has been entirely developed from scratch, �����˿����� cooperates closely with technical certification associations about matters practical and technological. Other partners, such as consulting firms, provide important legal and political input for the actual implementation. “We aim to develop nothing less than the new industry standard,” says Sturm. Judging by the effort and scope of this project, it will soon build trust throughout the energy sector with an instrument that combines transparency and verifiability.

January, 2022

Florian Bayer is a freelance journalist based in Vienna, Austria, where he has written for Zeit Online, Der Standard, and Wiener Zeitung.

Combined picture and video credits: Sebastian Philipp