Green electricity, that is, electricity from renewable sources such as wind, solar and waterpower, has a double payoff: On one hand, for the climate: Gases harmful to the climate are not released when it is generated, in contrast to electricity from coal-fired power plants. For another, it can pay off financially – when it is obtained through power purchase agreements, or PPAs, and the price of electricity is set in advance over the regular contractual period. Freudenberg already covers five percent of its global energy needs with green electricity from PPAs, and the percentage is rising. Martin Skrobisch, who heads the “Purchase Green Energy” project, puts the cost savings at 40 million euros. “Purchase Green Energy” is part of the overarching “Sustainability drives Climate Action” project. Still, the demand for green electricity greatly exceeds the supply, Skrobisch says, especially in Europe and America and increasingly in other parts of the world. Fast action is needed when an interesting project presents itself. The latest example is the PPA covering the supply of solar electricity from Tramm-Göthen, where Germany's largest photovoltaic park to date was built during the year under review. On an area equivalent to 347 football fields, 420,000 solar modules generate about 172 megawatts of electricity annually. The financing of this megaproject was facilitated by a purchase contract for all of its green electricity over a period of ten years. The agreement was concluded by Freudenberg and automaker Volkswagen on one hand and the electricity provider RWE on the other. PPAs are crucial to the decarbonization of industry and the expansion of renewable energy – not to mention the attainment of Freudenberg’s climate goals.