Tuesday, November 15, 2011

Heard of Renewable Energy Certificates (RECs)?

If you want to follow Googles, Ikeas and many other Global Brands Example to purchase and use green energy, you have to know about Renewable Energy Certificates (RECs), so let's go for it:

One REC represents 1 MWh of renewable energy generated; the actual power produced is sold to the grid and the REC is sold as a commodity (a certificate) in the marketplace. But don't confuse it. A common misconception is that organisations can purchase RECs as a method of carbon offsetting. This is not the case. RECs and carbon offsets are different mechanisms that accomplish different goals. Carbon offsets allow companies to reduce their greenhouse gas (GHG) emissions liability by purchasing the emission reductions made by another corporation, so that each carbon offset purchased represents the equivalent of one tonne of CO2 emissions. Whereas when a corporation buys an amount of RECs, often equal to their electricity consumption, they are perceived to be purchasing the power directly and can therefore claim to be powered by renewable energy. The idea of going green with your company mustn't be underestimated:

An impressive 81 percent of CEOs surveyed by U.K. newspaper The Guardian stated that sustainability issues are now "fully embedded" in their companies' strategies and operations, with many extending this focus to their subsidiaries and supply chains, specifically including procurement and investment in renewable energy sources.
What do you think? Looking forward to read your comments.

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