Nov. 5, 2007 IBM has devised a new way to help its IT clients demonstrate progress on a key business metric datacenter energy efficiency. The company has announced it will begin awarding certificates to datacenters that reduce power needs.

Neuwing Energy Ventures, an independent third-party verifier of energy efficiency projects, will document the energy savings and emissions reductions a client achieves through implementing energy efficiency projects.

The two-step process consists of establishing baseline energy use and then assessing energy use after efficiency measures have been implemented. Customers are issued a certificate for the total megawatt-hours of energy no longer needed to power and cool their datacenter or operate IT equipment. Neuwing Energy charges a fee per MWH saved.

"A key ingredient for clients to effectively become more environmentally aware and efficient is measuring where they are," says Rich Lechner, IBM's vice president of IT optimization. "By collaborating with Neuwing Energy, an independent party, IBM clients can be assured that energy reduction results are documented and verified consistent with current and developing standards. Utilizing this process, clients can gain an understanding of the business and environmental value in reducing data center energy consumption."

In addition to documenting energy conservation, energy efficiency certificates can also provide financial incentives and recognition for businesses and electricity providers that increase their efficiency, according to IBM. The certificates can be traded for cash on the growing energy efficiency certificate market, which determines certificate value by the number of certificates available and the demand for those certificates on each trading market.

For more on IBM's energy efficiency certificate program, watch this video.