Renewable Energy Certificate (REC)

A renewable energy certificate (REC), also called a guarantee of origin (GO) in Europe, is a tradeable instrument that certifies one megawatt-hour of electricity was generated from a renewable source. Organisations purchase RECs to substantiate claims of using renewable electricity under the GHG Protocol market-based Scope 2 accounting method. While RECs demonstrate financial support for renewables, their additionality - whether they drive new renewable capacity - is debated.