Frequently Asked Questions
RECs are a type of tradable Energy Attribute Certificate (EAC). One REC represents the environmental attributes of the generation of a one-megawatt hour of energy produced by renewable sources.
These certificates are used to prove that your power has been generated from renewable sources.
A carbon offset represents a one tonne reduction in GHG emissions – or an increase in carbon storage – that is used to compensate for emissions that occur elsewhere. The reduction of GHG emissions from a carbon offset project could be a result of carbon avoidance, reduction or removal.
Carbon credits (CCs) are tradeable instruments, and are certified by independent certification bodies. Every CC is traceable and finite; once used to offset any organisation’s emissions, they are retired forever, and cannot be sold again.
Renewable Energy Certificates (RECs) are primarily used to reduce an organisation’s Scope 2 emissions whereas Carbon Credits (CCs) are used to offset a company’s remaining emissions (Scope 1, 2 and 3) after they have taken steps to reduce their carbon emissions. Carbon Credits may also be used by a company to support beyond value chain mitigation.
Scope 1 encompasses direct emissions from sources that are owned or controlled by a company.
Scope 2 are indirect emissions resulting from the generation of electricity, heat, steam, or cooling purchased by a company.
Scope 3 are all indirect emissions (not included in Scope 2) that occur in the value chain of the company.
Yes. They are considered procured renewable energy and can contribute towards these targets, subject to specific RE100 guidelines.
Environmental attributes are essentially the “green” benefits or positive environmental impact associated with a particular project or asset.
Environmental financial products are typically renewable energy certificates or carbon credits that represent and quantify these environmental attributes.