There has been a growing number of states, organizations, and agencies sharing their sustainability and energy goals. They often include reduction in greenhouse gas emissions, increase in consumed renewable energy, or even achievement of carbon neutrality. Each one is a huge challenge, but emission offsets and Renewable Energy Certificates can help reach these goals.
Renewable Energy Certificates
These are the result of renewable energy projects that grant the right to claim a megawatt-hour of renewable energy associated with every REC. It may be utilized to bring down Scope 2 emissions, which is linked with power generation. This lets an institution claim renewable energy generation use and step towards compliance.
RECs may be bundled or unbundled. The former is often linked to new-build energy projects, while the latter has pre-existing credits and doesn’t add to the grid. Bundled RECs can be used to demonstrate contribution to the production of renewable power generation. Unbundled RECs are valuable in the achievement of emission compliance and employment of renewable energy.
RECs let building owners comply with legislation too. Local Law 97 in New York City is due to be implemented in 2024 and will apply to buildings taller than 25,000 sq. ft. It allows for RECs to offset all building emissions should the power source be in or have output sinking into the jurisdiction of the city. This is similar to the BERDO 2.0 in Boston, due to start in 2026. Not much information has been released about it yet.