1. To create transformative new incentives that support universal access to electricity (SDG 7) within the existing greenhouse gas emission accounting and reporting frameworks: Policymakers and standards bodies should allow and encourage companies to dedicate up to 10% of corporate clean energy procurement intended to reduce Scope 2 and Scope 3 (value chain) electricity-related emissions to projects that support increased clean energy access in unelectrified and underserved communities, even if these projects fall outside of the geographic matching requirement.

2. To deploy at least 10% of private sector clean energy investment, including corporate clean energy procurement, to support increased access to electricity in the least electrified communities: By end of 2025, companies that invest in or procure clean energy should begin allocating 10% of their global clean energy expenditure to support new clean energy projects in unelectrified and underserved communities.

• Ambition: Support the science-based global target of tripling total global clean energy capacity to 11 terawatts (TW) by 2030 in line with a 1.5°C pathway

• Equity: Prioritize clean energy deployment for the 675 million people worldwide who currently have no access to electricity and the additional 1 billion people without reliable electricity access to avoid fossil energy system lock-in

• Inclusion: Update greenhouse gas accounting frameworks in ways that promote greater clean energy access in unelectrified and underserved contexts

• Affordability: Ensure that clean energy is affordable so that community members can access it

• Speed: Move quickly to create new incentives and catalyze clean energy investments today

• Integrity: Leverage and refine existing market standards and best practices for clean energy procurement, energy attribute certificate-related data verification, greenhouse gas accounting, and climate-related disclosures

• Impact: Incorporate the United Nations Sustainable Development Goals (SDGs) into clean energy investment decisions to prioritize how to optimize clean energy systems for the maximum human benefit, such as to improve outcomes for health (SDG #3), education (SDG #4), water access (SDG #6), and peace (SDG #16)

• Neutrality: Support for any standard clean energy technology and any project deployment type, including but not limited to clean energy mini-grids, distributed energy resources, and grid-connected projects

• Project Sustainability: Promote community engagement in land-siting decisions, use of well-constructed and durable systems, and suitable maintenance and decommissioning plans for clean energy projects

• As an initiative supported by diverse nonprofits with their own respective missions and stakeholders, the Leapfrog Alliance serves as an advocacy and coordination platform to advance the rapid expansion in clean energy investments in unelectrified and underserved communities worldwide.

• Being a Supporter simply means the nonprofit supports the purpose, problem statement, objectives, and principles of this initiative.

• Supporters can convene activities independently in support of the Leapfrog Alliance on a voluntary basis.

• The nonprofit Energy Peace Partners (EPP), which spearheaded this initiative, serves as the lead overall coordinator.

Under current greenhouse gas accounting frameworks, the rationale for corporate clean energy investment is largely limited to clean energy projects in the geographies in which these companies operate, which are overwhelmingly countries with large existing energy infrastructure. The flip side of the current state of greenhouse gas accounting and related emission reduction incentives is that there are currently weak incentives for corporate investments to flow to clean energy projects in the places that need it most: developing countries that are home to the 675 million people without electricity access, including many unelectrified and underserved communities.

By creating a limited exemption to geographic matching-related requirements for clean energy claims, companies and investors will gain new incentives to advance clean energy access in unelectrified and underserved communities.

Consider two common scenarios:

• Addressing limitations of geographic matching for Scope 2: A growing number of companies want to deliver positive social and community impacts through their clean energy strategies. Under current rules, companies cannot typically claim the “environmental benefits” of their clean energy procurement if it comes from a project outside the defined geographic boundary of their purchased electricity, thus discouraging companies to support projects outside these geographic boundaries. As a result, very little climate finance and corporate clean energy investment currently flows to the places that need it most. This imbalance can be addressed by adjusting the rules of the accounting frameworks to allow for and encourage corporations to dedicate up to 10% of their global Scope 2 clean energy procurement for high impact projects in underserved communities, even without a geographic match to a company’s physical electricity footprint. Allowing this exemption to count in market-based emission reduction disclosures will create new incentives that motivate companies to support clean energy projects with the greatest positive human impacts. This exemption would be especially useful for companies when they do not have readily available clean energy options in any countries where they operate, as they could then count up to 10% of their clean energy procurement from unelectrified and underserved communities toward their global Scope 2 emission reductions without a geographic match.

• Providing clarity on Scope 3 electricity use and reducing the complexity of decarbonizing Scope 3 electricity use: A growing number of companies want to reduce their value chain emissions by procuring clean energy with and on behalf of their suppliers and customers (based on these partners’ respective purchased electricity). Currently, there is general lack of Scope 3 guidance, particularly around value chain partners’ electricity use and the assumed extension of geographic boundary requirements. The resulting confusion discourages companies from procuring clean energy on behalf of value chain partners. This issue can be addressed by incorporating an exemption that allows for 10% of global Scope 3 clean energy procurement for high impact projects in underserved communities, even without a geographic match, to go toward a company’s Scope 3 emission reduction efforts. Allowing this exemption to count in market-based emission reduction disclosures will create a new incentive that motivates companies to support clean energy projects with the greatest positive human impacts.