Welcome to the Green Think Tank

Increasing prices of fossil fuels and concerns about pollution and global warming continue to drive huge interests in Green Living and Renewable Energy Sources. Energy conservation and smart energy usage will be key components of our energy future, and future generations will produce and consume energy in profoundly different ways than we do today. This blog has been created with the goal of presenting a myriad of current topics related to the Energy Revolution, and is intended to spark increased awareness and meaningful discussions.



Friday, February 6, 2009

Renewable Energy Credit and Carbon Offsets

Renewable Energy Credits (RECs) represent a right to market characteristics associated with a “green” or an environmentally friendly generating facility and energy security.

Producers of “green” power can sell RECs as well as the power itself, increasing their profits, while other organizations can buy or trade RECs for reasons ranging from improving corporate image to satisfying regulatory compliance. When RECs are traded, the entity purchasing the RECs gains the right to claim environmental benefits.

Renewable Energy Certificates are also commonly referred to as
Green Tags, Renewable Energy Credits, Tradable Renewable Certificates (TRCs), and environmental attributes.


Carbon offsets represent reductions in Green House Gas (GHG) emissions as a result of project activities. Project types span various categories: methane capture at landfills, in agriculture or at coal mines; forestry; energy efficiency; and renewable projects which displace coal/natural gas generation.

Institutions and individuals purchase offsets for multiple reasons:
To manage carbon liabilities
To advance corporate sustainability goals while minimizing costs
To support the development of a “green” brand

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