If EAC prices rise and we stop buying them, will our emissions suddenly increase — and does that appear misleading?
Yes, that concern is valid and quite common.
Just like with electricity costs, relying only on market prices can create risk. If EAC prices rise sharply, it may become too expensive to keep buying them, and your reported emissions could suddenly go up. That shift can be hard to explain to stakeholders and may seem inconsistent.
This is similar to how companies manage their power bills. Many choose to hedge electricity prices in advance to avoid budget surprises. You can do the same with EACs by locking in prices and volumes ahead of time. This helps you manage costs and keep your emissions reporting stable over time.
Just like with electricity costs, relying only on market prices can create risk. If EAC prices rise sharply, it may become too expensive to keep buying them, and your reported emissions could suddenly go up. That shift can be hard to explain to stakeholders and may seem inconsistent.
This is similar to how companies manage their power bills. Many choose to hedge electricity prices in advance to avoid budget surprises. You can do the same with EACs by locking in prices and volumes ahead of time. This helps you manage costs and keep your emissions reporting stable over time.