How One Jewellery Manufacturer is Cutting Carbon Emissions with Renewable Energy Credits

Hear the word “sustainability” in a conversation about jewellery, and recycled gold probably springs to mind first. Whilst reusing precious materials is of course a logical step towards a circular economy – reducing the demand for mining – recycled metals alone only scratch the surface of the jewellery industry’s carbon footprint. In fact, if we are to acknowledge the biggest environmental impact, we need to look back to the very beginning of that metal supply chain. For every piece of jewellery created, it’s thought that 95% of its carbon footprint is attributed to the mining and production of its metal.

And the biggest culprit behind greenhouse gas emissions in mining? Electricity.

As a jewellery manufacturer committed to reducing our impact on the environment, we at Thai Design are passionate about sharing our knowledge with our customers, partners and peers; casting light on the lesser-known aspects of carbon emissions in our industry. Here’s what we’ve learned, what we’re doing to take responsibility, and why we believe Renewable Energy Credits (RECs) offer a viable, scalable solution for small and medium-sized enterprises (SMEs) like ours.

Mining, Electricity, and Carbon Emissions: What You Should Know

It’s not widely known – even within the jewellery industry – that the carbon footprint of gold and silver mining varies dramatically depending on where it takes place. That’s because these emissions are closely tied to the electricity grid in the country where the mine operates.

Countries like Canada and Finland, where electricity is largely generated from hydro and renewable sources, have some of the lowest-emission mining operations in the world – sometimes under 300kg of CO2e per ounce of gold. That’s less than half the emissions of high-intensity mining in regions like Australia, South Africa, China or Russia, where fossil fuels dominate the grid.

This is important because understanding the source of emissions helps us to make better decisions. Once we began learning about the differences between energy sources, we knew we had a responsibility to act – not just within Thai Design’s operations, but by contributing to the global transition to renewable energy.

First, What are Renewable Energy Credits - and Why do They Matter?

Renewable Energy Credits (RECs) are market-based instruments which prove that 1 megawatt-hour (MWh) of electricity was generated from a renewable energy source and fed into the grid. They’re used by companies worldwide to offset the carbon impact of their electricity use. Offsetting is, in other words, the act of compensating for carbon dioxide emissions by participating in schemes – like RECs – designed to make equivalent reductions of carbon dioxide in the atmosphere.

Here’s why RECs are a smart solution for businesses that wish to take responsibility:

• They scale renewable energy: Most RECs support projects commissioned in the past 15 years, with the highest quality credits linked to projects under 5 years old - meaning an investment actively supports the growth of new clean energy.

• They offer flexibility: Unlike on-site solar, which only offers one technology, RECs let us support a range of renewable options, including wind and hydro.

• They’re efficient: Large-scale energy projects tend to be far more efficient than small on-site builds of renewable energy systems, offering better environmental returns for each unit of electricity.

• They’re accessible: For many SMEs, RECs are one of the few affordable and meaningful ways to reduce Scope 2 emissions (those that arise directly from the purchase of electricity.)

While RECs aren’t perfect – they don’t generate cost savings in the long-term like solar installations can, for example – they offer a practical and immediate solution to climate action.

Taking Action: Offsetting Thai Design’s Electricity with Renewable Energy Credits

We’re proud to share that we’ve purchased International RECs (I-RECs) to match the entire electricity usage of our jewellery crafting facility in Chiang Mai, Thailand – not just for this year, but for the entirety of 2024, too. Our RECs certify that the electricity we consume is covered by locally generated Thai renewable energy, helping to reduce our Scope 2 carbon emissions by an estimated 68 tonnes of CO2e each year.

The details of our I-RECs investment are as follows:

Country:                 Thailand

Source:                   Rom Klao Wind Farm (Onshore)

Commissioning:      April 2019

Capacity (MW):       44.85

But this isn’t just about our emissions – it’s about wider impact. By investing in RECs, we’re directly supporting the growth of Thailand’s renewable energy sector. These projects need backing, and we’re proud to contribute to their expansion.

Why we Chose These RECs Over Solar Panels (For Now)

We’ve explored several options for reducing our energy footprint, learning that on-site solar panels are not always feasible for SMEs in Thailand like ours. Some of the common barriers include:

• Space limitations: Smaller facilities often lack the roof or land area needed to make solar viable at scale.

• Grid restrictions: Thai SMEs currently can’t sell excess power back to the grid. That means any electricity generated when the business isn’t officially operating (lunch hours, weekends and holidays) is effectively wasted unless expensive storage solutions are installed.

• Cost and efficiency: Small solar setups lack economies of scale. In contrast, RECs are tied to large, efficient renewable energy projects built specifically to maximise output.

  RECs neatly solve many of these problems. By matching our electricity usage with large-scale renewable generation, we eliminate waste, maximise impact, and support technologies that might otherwise be inaccessible to SMEs. Differences of opinion do of course exist, but wind energy projects are widely acknowledged to have certain advantages over solar. Due to their higher capacity factor, wind turbines produce more electricity per unit of embedded carbon. This leads to a stronger carbon efficiency profile over time - about two-thirds that of solar.

  
  

Rom Klao is among only a few high-quality wind options currently available in Thailand, and also represents one of the newest I-REC generating projects in the country. Supporting this project contributes to diversifying the national renewable energy mix, and is also RE100 compliant.

RE100 is a global initiative bringing together the world's most influential businesses committed to using 100% renewable electricity in their operations. Led by Climate Group, the mission is to accelerate change towards zero carbon grids at scale.

How to Choose the Right REC

We encourage any business considering RECs to do what we do and conduct thorough research. Not all credits are created equal, so it’s important to take a selective approach. Here are some of the factors we took into consideration:

• Location: We chose credits from a project based in Thailand to support the local grid and ensure that our energy use and generation are aligned.

• Technology: We favoured wind technology due to its efficiency.

• Project transparency: We insisted on familiarising ourselves with the project our credits came from, so we could verify its credibility and ensure alignment with our values.

• Commissioning date: We prioritised newer projects, which means our investment contributes to the creation of new renewable capacity, not just supporting what already exists.

• Vintage: We matched the energy production year (vintage) with our year of consumption. This is best practice for anyone investing in RECs because it ensures transparency and credibility in renewable energy purchasing, making it easier for us to track and verify the direct relationship between our consumption of renewable energy to its production.

  
  

One resource we found helpful whilst researching our options was Green Power Hub, a global renewable energy trading network with access to high-quality RECs. A high-quality REC is one that offers the most positive environmental benefits, represents genuinely new renewable energy and is properly tracked and retired to avoid double-counting.

Looking Ahead: A Call to the Industry

We’re sharing our journey not because we think we’ve got all the answers, but because we believe in transparency - and we know we’re not alone in wanting to make a difference. From independent designers to larger manufacturers, we know that the jewellery industry is teeming with businesses that are ready to begin reducing their environmental impact. For those who are unsure of where to start, perhaps this blog post could sow a seed. By raising awareness of electricity’s leading role in the jewellery industry’s carbon footprint and discussing practical, scalable solutions like RECs, we hope to inspire others to take the next step.

There is no such destination as ‘perfection’ so we continue seeking opportunities to further reduce our impact and invest in renewable energy. For now, our RECs offer us a powerful and effective way to make a measurable difference today.