What Is I-REC? Benefits of I-REC Certificates for Businesses
What is I-REC? It is a certificate that records the renewable energy attributes of generated electricity, with each certificate representing 1 MWh. By purchasing and redeeming I-REC certificates, businesses can substantiate renewable electricity consumption claims, support ESG reporting, and meet the requirements of parent companies, international customers, and supply chains.
What Is an International Renewable Energy Certificate (I-REC)?
I-REC (International Renewable Energy Certificate) is a certificate used to track and document the renewable energy attributes of electricity generated from sources such as wind, solar, hydropower, and biomass. By purchasing and redeeming I-REC certificates corresponding to their electricity consumption, businesses can substantiate renewable electricity consumption claims, support greenhouse gas emission reduction objectives, and meet sustainability requirements.
The I-REC(E) system operates through a mechanism for certificate registration, issuance, trading, and redemption, involving system administrators, registrants, and accredited issuers. I-REC certificates can be traded in the market, with each certificate representing renewable energy attributes associated with a specific quantity of electricity generated from an identified production source. When certificates are redeemed for reporting purposes or renewable electricity consumption claims, the relevant attributes are assigned to the designated beneficiary and purpose, helping prevent double claiming.
According to the I-TRACK Foundation, the I-REC(E) system has been implemented in more than 70 countries worldwide. In Vietnam, I-REC certificates are being used as a tool to help businesses substantiate renewable electricity consumption, meet environmental requirements, and pursue sustainable development objectives.
Similar to other energy attribute certificates, such as RECs and Guarantees of Origin (GOs), each I-REC(E) certificate represents 1 megawatt-hour (MWh) of electricity generated from a renewable energy source. Certificates are issued electronically based on the actual electricity generation output of eligible power generation facilities, documenting the renewable energy attributes associated with that electricity. Once traded and redeemed, I-REC(E) certificates enable the certificate holder to claim these attributes as evidence of renewable electricity consumption, subject to the applicable system rules.
1 I-REC = 1 MWh of Renewable Electricity
The digital tracking system under the I-REC Standard enables participants to trace renewable energy attributes from generation to consumption, helping ensure transparency and prevent double counting in I-REC market transactions.
Read more: I-REC Certificate Issuance Process
Which Energy Sources Are Eligible for I-REC Certificates?
I-REC certificates may be issued for electricity generated from the following energy sources:
- Solar energy
- Wind energy
- Hydropower
- Biomass energy
- Biogas energy
- Nuclear energy
What Are the Benefits of I-REC Certificates for Businesses?
Since electricity generated from different sources is supplied to the same power grid, businesses often find it difficult to determine the exact generation source of the electricity they consume. I-REC(E) certificates provide a mechanism for tracking renewable energy attributes, allowing businesses to substantiate renewable electricity consumption claims through the corresponding quantity of certificates purchased and redeemed.
Some benefits of using I-REC(E) certificates include:
- Supporting greenhouse gas emission reduction targets: Providing a basis for businesses to account for renewable electricity consumption in their emissions reporting activities, in accordance with applicable methodologies and standards.
- Achieving sustainable development goals: Supporting businesses in implementing commitments related to clean energy and environmental protection.
- Demonstrating environmental commitment: Enhancing transparency in corporate activities and initiatives aimed at sustainable development.
- Supporting reporting and disclosure: Providing evidence for ESG reporting, greenhouse gas inventories, and requirements imposed by customers, business partners, or supply chains.
Do Vietnamese Businesses Need I-REC Certificates?
Currently, I-REC certificates are not mandatory for all businesses in Vietnam. However, using I-REC certificates offers several practical benefits, particularly for businesses focusing on sustainable development and ESG (Environmental, Social, and Governance) performance:
- Demonstrating renewable energy consumption: Providing evidence of electricity consumption attributed to renewable energy sources, thereby reinforcing a company’s commitment to environmental protection.
- Supporting ESG and emission reduction targets: Helping businesses pursue sustainability objectives, conduct greenhouse gas inventories, and report environmental performance indicators.
- Enhancing brand reputation: Demonstrating environmental responsibility and strengthening trust among customers, business partners, and other stakeholders.
- Meeting international partner requirements: Supporting businesses in fulfilling renewable energy consumption requirements established by parent companies, customers, and partners across global supply chains.
- Strengthening competitiveness in international markets: Particularly beneficial for foreign direct investment (FDI) enterprises and Vietnamese businesses targeting export markets, where environmental and sustainability criteria are receiving increasing attention.
For these reasons, although I-REC certificates are not universally mandatory, they can be a valuable tool for businesses seeking to strengthen the implementation of their sustainability commitments and reinforce their market position.
NEED I-REC CERTIFICATES FOR YOUR BUSINESS?
Contact CIC today for advice on I-REC solutions tailored to your company’s requirements and budget.
Register for I-REC Service Consultation Here
CIC Construction Technology and Consultancy Company
Hotline: 033.226.8626 / 0866.059.659
Email: info@cic.com.vn
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