A renewable energy certificate (REC) is a market instrument that proves one megawatt-hour of electricity was generated from a renewable source and delivered to the grid.
A renewable energy certificate (REC) is a tradable instrument that represents the environmental attributes of one megawatt-hour (MWh) of electricity generated from a renewable source, such as wind, solar or hydro. Outside North America, similar instruments are called Guarantees of Origin (GOs) in Europe or I-RECs in many other markets.
When a company buys and retires RECs, it can claim that the electricity it used was renewable. Under the GHG Protocol market-based method, RECs can reduce reported Scope 2 emissions. They do not change location-based Scope 2, which reflects the actual grid mix.
A distribution center used 2,000 MWh of electricity in a year. The company bought and retired 2,000 RECs from a regional wind farm, allowing it to report zero market-based Scope 2 emissions for that site, while still disclosing its location-based figure.
No. A REC represents renewable electricity generation, while a carbon offset represents a tonne of emissions avoided or removed.
Under current GHG Protocol guidance, certificates should come from the same market where the electricity is used. Proposed Scope 2 updates may tighten matching rules further.
They should not be. Certificates must be tracked and retired in a registry so only one buyer claims each MWh.
Part of SafetyIQ's EHS glossary: plain-English definitions of workplace health and safety terms.
> Keep learning
> See it in action
Capture hazards, run inspections, track training and close out corrective actions in one platform built for high-risk, field-heavy work.
Book my free demo
Get a demo built around your sites, your teams, and the way your people work.
EHS, journey, and fatigue management software for field-heavy teams.
.png){kind=logo}
.png)