Across the world, Renewable Energy Certificates (RECs) have provided opportunities for numerous organizations to demonstrate their use of clean and renewable electricity sources. This enables businesses to build a green image for their brand. REC and I-REC are two types of renewable energy certificates, sharing similar significance but differing in geographical applicability. In this article, we will explore the distinctions between REC and I-REC and consider the choice of obtaining I-REC certificates in Vietnam, a country increasingly focusing on renewable energy development.
REC and I-REC, what are they?
REC stands for "Renewable Energy Certificate," while I-REC stands for "International Renewable Energy Certificate."
Both REC and I-REC are virtual certificate formats that track the renewable attributes of electricity from generation to consumption.
1 REC is equivalent to 1 MWh of Renewable Energy (RE).
Businesses using renewable energy sources such as solar, wind, hydropower, biomass, biogas, and nuclear energy can obtain IREC certificates.
How are REC and I-REC different?
REC and I-REC differ in geographical scope and application.
Both types of certificates serve the purpose of enabling businesses to demonstrate their use of renewable energy in their operations. However, REC applies to renewable energy sources in Europe and North America, whereas I-REC is used for renewable energy sources in Asia, Africa, the Middle East, and Latin America.
Why should businesses prioritize I-REC certificates?
The benefits of owning I-REC certificates are:
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Demonstrating renewable energy source: I-REC helps businesses clearly confirm and prove that the energy they consume comes from renewable sources, such as solar energy, wind energy, hydropower, biomass energy, biofuels, and nuclear energy.
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Commitment to sustainability and emissions reduction: Owning I-REC certificates demonstrates a business's commitment to sustainable development and reducing greenhouse gas emissions, contributing to environmental protection and climate change mitigation.
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Meeting ESG requirements: Businesses concerned about Environmental, Social, and Governance (ESG) indicators will find I-REC certificates useful in assessing and monitoring factors related to sustainable development and positive social impact.
Learn more about ESG: The Significance of ESG in Driving Sustainable Business Practices
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Building a green image: I-REC helps businesses build a reliable and green image, complying with international standards for environmental protection and sustainable energy.
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Attracting investments and customers: Possessing I-REC certificates instills confidence in environmentally sensitive investors and customers, enhancing the brand value and reputation of the business in the market.
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To attract and maintain foreign direct investments (FDI) from international companies with Environmental, Social, and Governance (ESG) goals, creating an effective REC ecosystem is essential.
From an investment perspective, owning I-REC certificates can bring numerous benefits and profit potential for businesses. Here are some key points to consider:
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Energy cost savings: Utilizing renewable energy sources and holding I-REC certificates enables long-term energy cost reduction, particularly if renewable energy sources are cheaper than traditional sources.
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Recognizing asset value: I-REC certificates have value and can be traded in the market, making them assets capable of recognizing value and contributing to business asset growth.
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Compliance with legal regulations: For businesses required to report and comply with renewable energy standards, owning I-REC certificates ensures adherence to relevant legal requirements.
Who should own I-REC certificates?
The entities that should own I-REC certificates include:
Businesses, organizations, and non-profits (excluding power companies) that use or support the use of renewable energy. Businesses interested in reducing greenhouse gas emissions, demonstrating the origin of their energy, and committing to sustainability in their operations are often the primary holders of I-REC certificates.
Individuals and organizations, if your business is concerned about Environmental, Social, and Governance (ESG) indicators, i.e., the environment, society, and governance, owning I-REC certificates plays a vital role in evaluating factors related to sustainability and the impact of your business on the community.
To learn about how to register for IREC renewable energy certificates, you can read the following article: Unlocking Green Energy: A Comprehensive Guide to I-REC and I-REC Registration in Vietnam
Giant Barb takes pride in providing top-notch services in auditing, risk assessment, and optimal solutions for energy-saving in businesses. With exceptional expertise in Green Development and Sustainable Consulting, we assist our clients in conserving electricity, optimizing production processes, and achieving I-REC certification efficiently and effectively. Beyond business focus, Giant Barb is committed to a sustainable future for enterprises and building a society with reduced greenhouse gas emissions.
Contact us for detailed advice and guidance.