I-REC (International - Renewable Energy Certificate)
About I-RECs
Scope 2 emissions are a major concern for businesses. I-RECs (International Renewable Energy Certificates) offer a cost-effective way to address this issue by simplifying their transition to renewable energy. I-RECs provide a faster way for businesses to achieve their sustainability strategy, with the flexibility to choose their sources of renewable energy based on their preferences. This approach helps businesses demonstrate their commitment to sustainability goals while allowing them to focus on their core business activities.
Understanding I-RECs (International Renewable Energy Certificates)
An I-REC for electricity is an exchangeable Energy Attribute Certificate (EAC) that conveys information about the production of a unit of electricity, such as where and when the electricity was produced, the capacity of the production facility, and the energy source.
Each I-REC certificate represents 1 megawatt-hour (MWh) of electricity generated from a renewable energy source. These exchangeable certificates can be redeemed by an entity to fulfill their voluntary net zero ambition or achieve their sustainability strategy adhering to various frameworks and initiatives like RE100, SBTi, CDP, and LEED certification.
How I-RECs Work
- Accounting for Renewable Electricity: Each I-REC represents 1 MWh of electricity from renewable sources like solar, wind, hydro, or biomass.
- Origin and Attributes: I-RECs provide detailed information on the technology, location, and time of electricity generation, offering full transparency to buyers.
- Electronic Registry: I-RECs are tracked and cancelled in a centralized I-REC registry, preventing double-counting and ensuring transparency.
- Validation for GHG Reporting: The Greenhouse Gas Protocol (Scope 2 Guidance) recognizes I-RECs for renewable electricity reporting, supporting credible emissions reduction reporting.