To document and report that the energy you consume outside Europe and North America comes from renewable energy sources you can buy International RECs (I-RECs). I-REC is a global standard being introduced in a growing number of countries in Asia, Africa, the Middle East and Latin America where no similar scheme exists. It is an effective and recognised tool to document your reduced greenhouse gas emissions and improve your sustainability rating.
How it works
I-REC builds on best practice from the North American REC market and Europe’s Guarantees of Origin system, and has strong stakeholder support. I-REC is recognised by the Greenhouse Gas Protocol Scope 2 Guidance as a tool to document electricity consumption from renewable energy sources.
Similar to a REC certificate and a Guarantee of Origin, each I-REC represents proof that 1 MWh of renewable energy has been produced and includes the environmental benefits this renewable energy has generated. The I-REC registry, electronically issues I-RECs based on renewable energy generators’ output.
I-RECs are traded. When a company buys I-RECs as documentation for their electricity consumption, the I-RECs are cancelled in the registry. This single standardised instrument makes it easy to track ownership, verify claims and ensure that I-RECs are only sold once and there is no double counting.
The International REC Standard (The I-REC Standard) established and governs I-REC operations. ECOHZ actively participated in the establishment of the I-REC Standard and is a member of the I-REC Standard Board. It is a not-for-profit association that aims to empower electricity buyers to make renewable consumption choices globally. The I-REC Standard does not have a role in the buying and selling of renewable electricity, but is an enabler to facilitate trade among consumers, traders, brokers, electricity suppliers, electricity generators and national governments.
ECOHZ is currently developing a global portfolio of I-REC power plants, with the ambition of providing multinational companies a wide selection of options covering most regions in the world.
Impact
I-RECs are a market-based instrument and an effective way to integrate renewable energy into a global sustainability strategy. Buying I-RECs demonstrates environmental leadership, sends a signal to the market that you prefer to consume renewable energy, and shows your commitment to changing energy behaviour.
Regulation
Corporate stakeholders have increasing expectations about reporting the origin of the power consumed. They expect that companies report according to international standards, including CDP reporting and the Greenhouse Gas Protocol. The updated Greenhouse Gas Protocol Scope 2 Guidance features Guarantees of Origin, REC and I-REC as mainstream instruments for documenting and tracking electricity consumed from renewable sources.
