As companies around the world race toward net-zero goals, green power procurement has become a foundational element of corporate sustainability strategies. Power Purchase Agreements (PPAs) have played a crucial role in this transition, enabling organizations to secure long-term access to renewable electricity while making bold claims about carbon neutrality. Yet beneath the surface of these clean energy deals lies an often overlooked dimension: the embodied carbon of the infrastructure itself.
Embodied carbon refers to the greenhouse gas emissions generated during the production, transportation, and installation of energy assets—such as solar panels, wind turbines, concrete foundations, and inverters. These emissions occur before a single kilowatt-hour is produced, and while they do not fall under Scope 2, they increasingly matter to companies aiming for transparency, credibility, and full lifecycle climate accountability.
It is easy to assume that renewable energy is inherently carbon-free. After all, solar and wind produce electricity without emitting CO₂ during operation. However, this operational cleanliness does not account for the significant emissions embedded in the materials and processes required to manufacture and deploy these systems. For instance, the production of silicon wafers for solar panels involves high-temperature industrial processes often powered by fossil fuels. Wind turbines require massive amounts of steel and concrete, both of which are among the most carbon-intensive materials in the world.
When these materials are extracted, processed, transported, and assembled, they generate emissions—emissions that are invisible in traditional energy accounting but increasingly visible to regulators, investors, and environmentally aware consumers. This discrepancy has sparked concern among sustainability professionals who are now calling for a more complete picture of carbon performance, even in renewables.
The rise of embodied carbon as a key procurement consideration is rooted in both risk management and opportunity. Companies that ignore these upstream emissions run the risk of greenwashing, where well-intentioned environmental claims may be undermined by a lack of transparency. On the other hand, organizations that incorporate embodied carbon into their procurement criteria are better positioned to lead on ESG, meet growing investor expectations, and prepare for more rigorous disclosure regulations.
Embodied carbon also presents a chance for differentiation. By selecting projects that prioritize low-carbon materials, local sourcing, and circular design, buyers can demonstrate leadership and innovation in clean energy strategy. This alignment with science-based targets and full Scope 3 accountability gives procurement teams a new lever to drive sustainability across the value chain.
Quantifying embodied carbon in energy projects is no easy task. It requires life cycle assessments (LCAs), accurate emissions databases, and close collaboration with developers and suppliers. Nevertheless, progress is being made. Tools like the Embodied Carbon in Construction Calculator (EC3), environmental product declarations (EPDs), and material benchmarking platforms are making it more feasible for corporate buyers to assess the carbon intensity of different energy options.
Procurement teams can request third-party-verified LCA reports for solar modules, wind turbines, and balance-of-plant components. They can work with developers to include embodied carbon metrics in RFPs and negotiate contracts that reward low-emission practices. Some buyers are even collaborating with certification bodies to validate the carbon performance of entire PPA portfolios.
Beyond measurement, embodied carbon must be integrated into decision-making. This includes adjusting evaluation criteria, revisiting total cost of ownership models to include carbon cost, and embedding sustainability teams directly into procurement workflows. In this way, embodied carbon becomes not a side metric, but a core consideration in how companies acquire and report clean energy.
As the bar for climate leadership rises, so too does the expectation that renewable energy procurement must be about more than just avoiding emissions—it must actively reduce them throughout the project lifecycle. Embodied carbon reporting helps close the loop between upstream impacts and downstream benefits, creating a more honest and effective path to net zero.
For companies navigating the complexities of decarbonization, addressing embodied emissions in PPAs may seem like yet another challenge. But it is also an opportunity to future-proof energy strategy, enhance ESG credibility, and support the development of truly low-impact infrastructure.
In the long run, clean power must be built as cleanly as it is consumed. Only then can we claim that a green kilowatt-hour is truly green.
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Cement and steel are among the biggest contributors to embodied carbon in clean energy projects. This article explores low-carbon alternatives and practical strategies for reducing their climate impact.
