Definition
A Guarantee of Origin (GO) is an electronic certificate documenting that one MWh of electrical power was produced from a specific renewable energyEnergy from sources that renew naturally - wind, solar, hydropower and bioenergy - as opposed to fossil fuels. source (water, wind, solar, bio) at a specific time and place. GOs are issued by national authorities and traded in a European market (the AIB system). Companies purchase GOs to document that their electricity consumption is renewable - which is essential for Scope 2 reporting under CSRDCorporate Sustainability Reporting Directive - EU directive requiring detailed sustainability reporting from large companies starting 2024. and ESGEnvironmental, Social and Governance - framework for measuring and reporting sustainability in business. frameworks. GOs are market-based documentation, not a guarantee that the physical electricity flow is actually renewable (the grid mixes all electricity). If an electricity product is marketed as '100% renewable', the supplier must have cancelled a corresponding number of GOs. The price of GOs varies with supply from producers and demand from companies with climate targets.