How digital certificates track clean energy
Renewable Energy Certificates (RECs) are digital proofs that track clean energy production worldwide, creating a market for environmental attributes and accelerating the shift to net-zero emissions.
Renewable Energy Certificates (RECs) are like digital passports for clean energy, verifying electricity from sources like wind and solar. Each REC represents one megawatt-hour of green power, allowing producers to sell these environmental benefits separately from the actual electricity. This system, started in the US in the early 2000s, now operates globally in over 40 countries through frameworks like the International REC Standard. It lets companies claim carbon-neutral operations by buying RECs, even from distant renewable projects. This market, valued at $2.5 billion in 2020, incentivizes investment in renewables and helps meet climate goals by making green energy more accessible and accountable.