Environmental commodities
International Renewable Certificates
(I-RECs)
What is an I-REC?
I-REC is a type of EAC that is used to track and trace renewable energy on a global scale.
I-REC are issued by certified issuers who have been accredited by The International Tracking Standard Foundation, a non-profit organization that promotes the use of renewable energy and the founder of I-RECs. Currently, I-RECs are available in more than 60 countries across Asia, Africa, the Middle East, Latin America, and Oceania. An I-REC account for 1MWh of renewable electricity and states the origin, technology, region, and vintage.
Why are I-RECs Important?
I-RECs are important because they track and assign ownership to renewable electricity generation and use, even though the physical electricity we receive through the utility grid does not reveal its origin or how it was generated. In other words, I-RECs help to ensure that people who purchase renewable energy are actually receiving it, even though they cannot physically distinguish renewable energy from other types of energy on the grid. I-RECs do this by tracking the generation and use (retirement/redemption) of renewable energy.
Additionally, I-RECs can help to promote the use of renewable energy and reduce greenhouse gas emissions. Companies can purchase I-RECs to meet their RE100 goals as well as their decarbonization initiatives. Retiring I-RECs can also demonstrate a company's commitment to sustainability and corporate social responsibility, which can improve its brand reputation and attract customers and investors.
Due to growing global Net Zero and RE100 commitments, the demand for I-RECs is growing at a rapid pace: 100% annual growth rate since 2020.
Types of I-RECs
Types of I-RECs
I-RECs are issued and are available in 60+ countries across Asia, Africa, the Middle East, Latin America, and Oceania.
Refer to the below map for countries that are a part of I-REC Standard.
Country Specific Nature of I-RECs
Country Specific Nature of I-RECs
Country Specific Nature of I-RECs
An important aspect of I-RECs are that they are country-specific. This means if a company wants to claim that they are using renewable energy in a specific country, then the company must purchase I-RECs from that specific country. In other words, I-RECs are specific to the location where the renewable energy is generated and are used to claim that the electricity consumption comes from renewable sources in that region.
As an example, consider a multinational company operating in multiple countries that adhere to the I-REC Standard. To assert their utilization of renewable energy in each of these countries, the company must acquire I-RECs for each respective country of operation.
How to Trade I-RECs
How to Trade I-RECs
There are three main ways for a company to buy and sell I-RECs:
- Over-the-counter (OTC): This involves trading I-RECs directly with another company, traders or individual. OTC trading is typically done on a one-off basis, and the price of I-RECs is negotiated between the two parties.
- Exchange or Marketplace: This involves trading I-RECs on a centralized exchange or a marketplace. Exchanges and marketplaces provide a platform for buyers and sellers of I-RECs to meet and trade. The price of I-RECs on an exchange or a marketplace is determined by supply and demand.
- Aggregator: An aggregator is a company that acts as a middleman between buyers and sellers of I-RECs. Aggregators typically have a large network of buyers and sellers, which can give companies better prices on I-RECs.
I-RECs are one of the main EACs traded on the CnerG Marketplace. If you are a corporate buyer looking to source I-RECs globally, an energy generator looking to sell I-RECs, or a trader looking to trade I-RECs, reach out to our team.
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