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municipalauthorities.org │ 39 Decarbonization: The Foundation of Sustainability Every great sustainability story begins with a decarbonization strategy. Reducing Scope 1 (direct carbon emissions) and Scope 2 (indirect carbon emissions) emissions is not just about compliance—it’s about futureproofing your brand and operations. Key steps include: • Conducting a carbon footprint assessment to understand your current outlook and set a baseline. • Setting clear targets: Define short- and long-term carbon emissions reduction targets aligned with your business strategy. • Identify opportunities and build a roadmap. • Tracking and reporting progress transparently. Decarbonization aligns with stakeholder expectations, customer values, and emerging regulations, making it a strategic imperative for forward-thinking organizations. Leveraging Renewable Energy Procurement options Depending on your operational footprint, budget, and sustainability ambitions, renewable energy procurement options — such as PPAs, EACs, and green tariffs — can be combined to build a more comprehensive energy strategy. Each of these tools has its strengths and trade-offs. For organizations unable to directly procure renewable energy or permanently reduce, Energy Attribute Certificates (EACs) offer a flexible and credible solution. These certificates verify that a specific amount of electricity was generated from renewable sources and can be used to claim green energy use. EACs offer unmatched flexibility and ease of access, while Power Purchase Agreements (PPAs) and on-site solar can deliver deeper impact and long-term cost benefits. Green tariffs provide a simple entry point for smaller operations or those with limited procurement capacity. Many organizations find that a blended approach—using EACs to cover immediate needs while investing in longer-term solutions—offers the best balance of impact, credibility, and practicality. The key is to align your energy strategy with your broader sustainability goals and to adapt as your organization grows and the market evolves. Timing is the Key: The Cost of Waiting According to the U.S. Energy Information Administration (EIA) 2025 Short-term Energy Outlook, electricity consumption grew by 2% in 2024 in the United States 2 . The EIA forecasts electricity demand will continue growing at a similar rate in 2025 and 2026 (around 2.5%), which would be the first three years of consecutive growth in electricity demand since 2005–07. In fact, U.S. electricity peak demand set new records twice at 758,053 megawatts (MW) and 759,180 MW in July during hot weather. As demand outpaces supply, electricity prices are likely to accelerate. Additionally, fuel-price swings and supply constraints are adding volatility, making five-year budget forecasts challenging. Delaying renewable energy adoption can be a costly mistake. This is where the opportunity emerges. Acting now on renewable energy procurement can unlock two layers of economic value—one immediate and one long-term—making a strong case for investment. Solutions Pros Cons EACs Flexible, low-cost, scalable No direct link to energy supply Green Tariffs Simple, bundled with supply Limited to utility offerings Power Purchase Agreements (PPAs) Long-term price stability, additionality Complex, long-term commitment Onsite solar Visibility, cost savings Requires space, upfront investment Continued on page 65. 2 U.S. Energy Information Administration (2025). Short-term Energy Outlook.