The I-TRACK Foundation has published a template for Power Purchase Agreements (PPAs) that comply with the electricity tracking requirements of the EU’s Carbon Border Adjustment Mechanism (CBAM).
Through this template, the organisation aims to:
- Empower electricity consumers and producers to leverage PPAs to reduce the embedded emissions of products and electricity imported into the EU.
- Document renewable energy consumption using International Renewable Energy Certificates (I-RECs) in line with CBAM requirements.
- Provide a flexible framework applicable across various national electricity markets. The template includes country-specific annexes tailored for Albania, Egypt, the Kingdom of Saudi Arabia, Malaysia, Mozambique, Turkey, the United Arab Emirates, and Zimbabwe.
The template simplifies compliance for companies and electricity generators as CBAM regulations move into full effect. It also advances the I-TRACK Foundation’s goal of facilitating international commerce by providing a credible and global energy tracking standard.
Importers intending to use the template should note that the European Commission is expected to publish further guidance on how to claim an electricity provider’s emissions factor when using a PPA.
Additionally, while the template covers all core aspects of a PPA necessary for claiming clean electricity use in several countries, its effective implementation still requires local expertise to evaluate price fluctuations and navigate national electricity policies.
You can find the I-TRACK Foundation’s CBAM-compliant PPA template here.