Renewable energy certificates are reshaping 2025 global markets

The global push toward decarbonization is accelerating, and renewable energy certificates (RECs) are an important market tool fueling the transition to renewable sources of energy. The REC market is projected to grow from USD 27.99 billion in 2025 to USD 45.45 billion by 2030, with a CAGR of 10.2% according to a recent report by Notified. This expansion is being driven by a confluence of factors: maturing renewable technologies, growing corporate sustainability initiatives, and robust policy support from governmental bodies.

Solar energy is leading the REC market due to its rapid growth, cost effectiveness, and widespread adoption. It is easier for corporations to achieve economies of scale and make solar energy more affordable, which allows this form of energy to dominate the REC generation. Alongside this, many solar and wind energy facilities are generating RECs which increases the number of RECs being bought, sold, and traded. Large-scale installations, particularly those generating above 5000 KWh are leading the charge, as they offer greater efficiency and price competitiveness. These systems not only allow companies to decarbonize their operations more effectively, but also generate a larger volume of tradable RECs, feeding a growing marketplace.

The REC market is also experiencing a noticeable shift toward voluntary purchases. While compliance-driven mechanisms like Renewable Portfolio Standards (RPS) in the U.S. continue to play a foundational role, more companies and individuals are proactively buying RECs to fulfill their sustainability goals and commitments, thereby funding the energy transition movement. North America is one of the front-runners in this voluntary movement, as it is backed by regulatory frameworks and increasing consumer and investor expectations for transparency and accountability.

Technological innovation is also reshaping the way RECs are verified and traded. Better technologies within the renewable energy procuration space is making RECs more efficient and thereby cheaper. At the same time, blockchain technology is gaining traction for its potential to enhance transparency. These breakthroughs are creating a more agile, trustworthy system for tracking, certifying, and funding clean energy usage.

Government policy continues to be a major tailwind. Countries across the globe, like the USA, China, and the EU are tightening emissions regulations, offering governmental incentives, and integrating RECs into national energy strategies. India, for instance, used RECs to meet their RE100 targets. Corporate procurement trends also signal a market tipping point. Businesses, particularly in sectors like food and beverage are seeking reliable renewable energy sources and green corporate procurement initiatives as part of broader sustainability goals. 

In a rapidly evolving energy landscape, Innovo Markets recognizes that RECs are becoming more than just compliance tools, they’re turning into strategic assets. As demand for clean energy continues to surge, and as the tools to measure and monetize environmental impact grow more sophisticated, RECs are likely to become even more central to how businesses, governments, and individuals engage with the energy transition.