A Guide to Renewable Energy Certificates and Global Attribute Markets

Renewable Energy Certificates (RECs) and their global counterparts, EACs, GOs, I-RECs, Peace RECs, and Additionality RECs, are the accounting backbone of clean energy. They prove renewable generation, support compliance and voluntary markets, and underpin corporate emissions reporting. This first piece in our six-part series explains how environmental attribute systems work, where they operate, who buys them, and why they matter.

What are Renewable Energy Certificates (RECs)?

In the United States, Renewable Energy Certificates represent the environmental attributes of one megawatt-hour of renewable electricity. They exist because electrons on the grid cannot be distinguished once generated; the REC serves as the legal proof that the power came from a renewable source.

Market size is significant. In 2022, voluntary REC retirements exceeded 170 million MWh, and compliance demand continues to rise under state Renewable Portfolio Standards. Buyers include utilities meeting RPS obligations, corporates making Scope 2 claims under frameworks like the GHG Protocol, and those looking for liquid, standardized environmental commodities.

What drives REC market dynamics?

Compliance and voluntary forces jointly shape REC prices and liquidity, creating a complex ecosystem. Compliance demand is driven by state-level Renewable Portfolio Standards (RPS) and similar mandates, which require utilities to purchase and retire RECs to meet regulatory targets. This creates episodic surges in demand that sharpen price signals and foster market volatility. On the other hand, voluntary demand is steadily rising as more corporations and institutions commit to ambitious sustainability targets aligned with disclosure frameworks such as RE100, CDP, and SBTi. These buyers increasingly require transparent and auditable renewable procurement to support climate claims and regulatory reporting.

As disclosure standards tighten and expectations for hourly matching and project-specific attributes climb, voluntary buyers now play a larger role in shaping product differentiation and driving innovation in REC structures. Compliance channels anchor the market, but the voluntary sector ensures continuous growth, broadening participation and accelerating the transition to a decarbonized grid.

What are Energy Attribute Certificates (EACs)?

Globally, the umbrella term for renewable tracking instruments is Energy Attribute Certificates (EACs). They function like U.S. RECs but are issued in over 70 countries across Europe, Asia, and Latin America. Each EAC represents 1 MWh of renewable generation.

EACs are recognized under the GHG Protocol for Scope 2 accounting and are essential for multinational corporates that need consistent reporting across jurisdictions. Without them, a firm with operations in the U.S., Europe, and Asia would face fragmented disclosures. With EACs, the proof of renewable generation is standardized, enabling corporates, utilities, and governments to track adoption with integrity.

What are International RECs (I-RECs)?

In markets without a domestic certificate system, the I-REC Standard Foundation established a global framework. I-RECs are now issued in over 50 countries across Asia, Africa, and Latin America, creating a uniform way to verify renewable generation in emerging markets.

In 2023, 283 million I-RECs were issued. The system operates under the International Attribute Tracking Standard, and each market applies the I-REC Product Code for Electricity. The Foundation accredits registries, issuers, and platforms to ensure compliance with the Standard. Accredited registries, such as Evident, manage issuance, tracking, and trading in partnership with the governing body. 

Unlike U.S. RECs, I-RECs can be traded internationally across borders, making them a critical tool for multinationals with operations in emerging markets. Voluntary corporate buyers dominate the market, but governments are beginning to explore their role in compliance systems.

What are Peace RECs?

Peace Renewable Energy Credits (P-RECs) are a specialized version of I-RECs designed for fragile and conflict-affected regions. Developed by Energy Peace Partners in collaboration with the I-REC Standard, P-RECs are issued from renewable projects in Sub-Saharan Africa and other energy-poor regions.

Like I-RECs, they are tracked through Evident. What sets them apart is the impact: revenues from P-RECs directly support peacebuilding, humanitarian objectives, and energy access. Buyers are typically corporates with advanced ESG strategies who want to reduce emissions while also delivering measurable social co-benefits. Although still niche, P-RECs highlight how environmental attributes can be structured to support broader development goals alongside decarbonization.

What are Guarantees of Origin (GOs)?

Europe’s Guarantees of Origin are the most mature EAC system. Created under the EU Renewable Energy Directive, each GO certifies that 1 MWh of power came from a renewable source.

The system is vast. In 2023, 988 million GOs were issued across Europe. Governance is centralized under the European Energy Certificate System (EECS), which is overseen by the Association of Issuing Bodies (AIB). The AIB operates a hub that connects 36 national issuing bodies across 28 countries, allowing certificates to move seamlessly across borders within Europe’s single energy market.

Buyers include utilities offering green tariffs, corporates reporting emissions reductions, and governments tracking progress toward EU climate goals. Prices typically range from €2–10 per MWh but vary by technology, country, and demand. The GO market is highly liquid, and differentiation is increasing as buyers seek attributes like project vintage or hourly matching to support 24/7 carbon-free claims.

What are Additionality RECs?

Additionality RECs address one of the core critiques of renewable certificates: that they may simply reallocate existing supply rather than create new capacity. These products are structured to prove that purchases contribute directly to financing new renewable projects.

The definition of additionality varies. Companies may evaluate project commercial operation dates (CODs), emissionality impacts, or financing structures to ensure their purchases are enabling new builds. Some buyers focus on funding project developers in emerging markets, while others tie procurement to projects that displace fossil-heavy grids.

Because they carry a higher proof of impact, Additionality RECs often trade at a premium. Supply is limited, since not all projects meet the criteria. Buyers are usually corporates under heavy scrutiny from investors and stakeholders who want to demonstrate that procurement decisions materially expand renewable capacity. For these firms, the REC is not just an accounting tool but a story to tell about real climate impact.

How can you buy these different kinds of certificates?

Most REC transactions flow through a handful of channels that vary in complexity and strategic value. The most common route is through brokers and intermediaries, who match buyers and sellers in both compliance and voluntary markets. 

Corporates with longer-term sustainability strategies often use power purchase agreements (PPAs). In these deals, companies contract directly with project developers to buy renewable electricity, and the associated RECs are bundled into the contract. PPAs are attractive because they provide price certainty and can demonstrate additionality, showing that a company’s procurement helped finance new capacity.

Another path is through unbundled REC purchases, where companies buy the certificates alone, without the underlying electricity. This option is the most flexible and scalable for corporates with global operations, as it allows them to cover demand spikes or hard-to-abate facilities without renegotiating supply contracts.

At the registry level, buyers can also transact directly in accredited systems. In the U.S., that means purchasing and retiring RECs within registries like WREGIS or M-RETS. In global markets, Evident serves as the accredited platform for I-RECs and Peace RECs, handling issuance, tracking, and cross-border transfers. This direct route ensures traceability and allows companies to manage international claims in a consistent way.

No matter the approach, the credibility of a certificate depends on retirement in the registry where it was issued. Retirement proves exclusive ownership and prevents double counting. Buyers must also align their purchases with recognized frameworks such as the GHG Protocol, CDP, and RE100, which set the standards for how certificates can be used in Scope 2 reporting. Without those steps, procurement loses its value as a verified climate claim.

How does Innovo fit into this global landscape?

Innovo simplifies what is otherwise a fragmented system. In the U.S., ten separate registries service different regions, from WREGIS in the West to M-RETS in the Midwest and NEPOOL GIS in the Northeast. Each tracks issuance, trading, and retirement for compliance and voluntary markets.

This fragmentation has created friction for corporates with national footprints, brokers trading across states, and investors seeking efficiency. Innovo addresses that gap by acting as a meta-registry and connecting to these North American registries, providing a unified portal to access and transact across all ten registries in one place.

Globally, we are directly connected with Evident, enabling clients to source I-RECs and P-RECs with the same ease. Our platform digitizes the lifecycle of every certificate, sourcing, settlement, retirement, and reporting, while enriching each transaction with metadata that makes claims verifiable. Whether a client is buying low-cost voluntary RECs or Peace RECs with social co-benefits, Innovo provides the infrastructure to execute faster, reduce costs, and report with confidence.

The bottom line

Environmental certificates are the currency of renewable energy markets. In 2023 alone, nearly a billion GOs were issued in Europe, 283 million I-RECs were traded globally, and U.S. registries continued to drive both compliance and voluntary demand. Each system has its own rules and dynamics, but together they enable companies and governments to prove renewable use, meet climate targets, and build new capacity.

This blog is the first in a six-part series exploring environmental assets and their market dynamics. Next week, we will compare renewable certificates with carbon credits and examine how both instruments fit into global climate strategies.