UC Irvine Researchers Issue White Paper on Environmental Attribute Credits

Oct. 17, 2023 – Researchers in the Clean Energy Institute at the University of California, Irvine have completed a white paper entitled “Environmental Attribute Credits: Analysis of Program Design Features and Impacts.” The document assesses seven program design features related to the generation and use of environmental attribute credits (EACs), their impact on cost and on the attainment of environmental goals. 

The analysis presents perspectives and available evidence on requirements for use of tradable credits, time matching, additionality, geographic boundaries, verification and tracking, preference for nascent technologies and methods to ensure credit value certainty. Lead author Jeffrey Reed, chief scientist for renewable fuels and energy storage with UCI’s Clean Energy Institute, said, “There is evidence and rationale to support the range of positions being put forward on these issues. Notwithstanding program differences, there is robust evidence that the use of EACs supports market development and facilitates investment in environmentally preferred resources.” 

Increased stringency in program requirements ensures environmental integrity but can also impede resource expansion if compliance with increased stringency requirements becomes too onerous. The optimal balance depends on the design element being considered, the environmental attribute, and the stage of market development. 

Reed added, “We hope this white paper will contribute to a fact-based dialogue that helps to find the right balance points in program design features, maximizing clean technology deployment at least cost, while ensuring that environmental goals are achieved.” 

– William Gary