Reduction Plans → RECs (Renewable Energy Certificates)

The Renewable Energy Certificates (RECs) module in CarbonX provides a comprehensive system for recording, verifying, and managing renewable electricity procurement, ensuring that an organization’s renewable energy usage is accurately reflected in its total carbon accounting framework.

Written By CarbonX Registry

Last updated 4 months ago

RECs serve as official documentation proving that one megawatt-hour (MWh) of electricity has been generated from a renewable source and supplied to the grid. By managing RECs within CarbonX, organizations can transparently demonstrate progress toward Scope 2 emission reductions, strengthen compliance with reporting frameworks, and reinforce commitments to sustainability and net-zero strategies.

Image: RECs management interface showing certificate records by facility, renewable project type, energy volume (MWh), and verification details, integrated into emission calculations and reporting workflows.

1. Overview

The RECs module enables organizations to upload, store, and track Renewable Energy Certificate data in a centralized, auditable environment.
Through this feature, CarbonX integrates verified renewable energy sourcing into emission calculations, ensuring precise market-based accounting under the GHG Protocol and related standards.

Key Objectives:

  • Log and store all REC certificates, including origin, type, and project data.

  • Verify renewable energy claims to ensure transparent and auditable documentation.

  • Incorporate REC data directly into carbon footprint calculations and Scope 2 market-based emission adjustments.

  • Support reporting compliance for CDP, CSRD, ISO 14064, and SBTi-aligned disclosures.

By using this module, organizations can confirm that renewable electricity purchases contribute credibly to their emission reduction and net-zero targets.

2. Interface and Core Components

The REC interface is designed for transparency and usability, offering a clean workflow for data entry, review, and integration with emission results.

A. Header Section

Located at the top of the page, the Header Section introduces the feature’s purpose and includes the “Add REC Data” button.
This button launches a data entry panel for recording new certificates or updating existing ones.

Displayed Information:

  • Short description of RECs and their contribution to carbon reduction.

  • Quick access to Add REC Data for seamless input.

  • Status indicators summarizing total recorded renewable energy (MWh) and applied certificates.

B. Your Certificates Table

The main table lists all recorded Renewable Energy Certificates and their relevant attributes. Each record corresponds to a specific facility or reporting period.

Table Columns:

  • Facility: The site or organizational unit linked to the REC (e.g., Head Office, Manufacturing Plant A).

  • Emission Source: The energy activity that the REC offsets, such as Purchased Electricity or Energy Generation.

  • Year: Reporting period when the REC was applied.

  • Energy Amount (MWh): The total renewable energy amount covered by the certificate.

  • REC Type: Type of certificate (e.g., Solar Renewable Energy Certificate (SREC), Wind REC, Hydro REC).

  • Purchased Company: The vendor, energy supplier, or trading platform issuing the REC.

  • Verification Key: Optional field for the certificate’s unique serial number or registry identifier.

  • Project Type: The renewable energy project type (e.g., Solar PV Farm, Wind Turbine Project, Hydropower Station).

  • Action Menu (⋯): Allows users to View, Edit, or Delete entries, maintaining control over data accuracy.

Each record contributes to both emissions accounting (Scope 2, market-based) and progress tracking under the organization’s renewable energy targets.

3. Adding a New REC Entry

When the user clicks “Add REC Data”, a side panel opens for inputting all relevant certificate details. This process ensures both regulatory compliance and traceability for each REC entry.

A. Required Fields

  1. Facility:
    Select the relevant facility or operational site associated with the REC.
    This ensures localized linkage of renewable energy consumption to emission reductions.

  2. Emission Source:
    Choose the related energy activity (e.g., Purchased Electricity, On-Site Generation).

  3. Year:
    Define the calendar or fiscal year during which the REC applies.

  4. Energy Amount (MWh):
    Enter the total renewable electricity represented by the certificate.
    The system uses this value to adjust Scope 2 market-based emissions.

B. Optional Fields

  1. REC Type:
    Specify the certificate classification (e.g., Solar REC, Wind REC, Hydro REC).

  2. Purchased Company:
    Input the issuing company, utility, or platform that provided the REC.

  3. Verification Key:
    Enter a unique serial number or registry code to verify authenticity through third-party databases.

  4. Project Type:
    Identify the renewable energy project category — Solar, Hydro, Biomass, Geothermal, or Mixed Renewable.

  5. Description:
    Add contextual notes, such as project location, purchase agreement terms, or audit references.

  6. Upload Certificate File:
    Attach official documentation (PDF, image, or scanned certificate) to validate the REC’s authenticity.

Once the entry is saved, CarbonX automatically:

  • Integrates the REC into Scope 2 emission calculations.

  • Reflects the renewable energy contribution in dashboards and reports.

  • Stores the certificate for audit trail and verification purposes.

4. Use Case and Impact

The RECs module plays a crucial role in supporting credible decarbonization and renewable sourcing efforts.
By systematically tracking certificates, organizations can ensure both internal transparency and external compliance.

A. Compliance & Reporting

  • RECs enable organizations to report market-based Scope 2 emissions per the GHG Protocol.

  • Recorded certificates automatically appear in emission summaries and reports generated through the Reporting module.

  • Helps organizations demonstrate renewable energy usage during ESG and compliance disclosures (CDP, CSRD, ISO 14064).

B. Reduction Validation

  • When linked with Reduction Targets, RECs validate renewable electricity procurement as part of the organization’s decarbonization strategy.

  • For example, achieving a 20% Scope 2 reduction target may rely partly on the renewable energy quantity represented by active RECs.

C. Audit Trail and Transparency

  • Uploaded certificates serve as verifiable proof for external audits, sustainability ratings, and certification processes.

  • Ensures traceability between renewable energy purchases and emission reductions.

Example Use Case:
A company purchases 2,000 MWh of certified renewable electricity through a Power Purchase Agreement (PPA) and uploads the corresponding RECs to CarbonX. The platform automatically adjusts the Scope 2 market-based footprint, reducing total emissions by approximately 800 tCO₂e. The certificates are then included in the organization’s audit-ready sustainability report.

5. Integration and Automation

The RECs module is designed to operate seamlessly within CarbonX’s integrated carbon management ecosystem, ensuring automatic synchronization with related data modules.

Key Integrations:

  • Emission Results:
    RECs link directly to energy-related categories, automatically reducing the Scope 2 market-based calculation.

  • Reduction Targets:
    Certificates are used as evidence of renewable energy sourcing improvements, supporting progress toward energy-related reduction goals.

  • Reporting:
    All REC data is embedded in AI-generated reports, ensuring renewable energy contributions are visible and traceable in compliance summaries.

  • Performance Metrics:
    Renewable electricity usage feeds into efficiency dashboards, helping organizations measure improvements in emission intensity relative to business indicators (e.g., revenue, employees).

Automated Features:

  • REC totals are automatically recalculated when new certificates are uploaded.

  • Expired or replaced certificates can be archived to preserve audit integrity.

  • Certificate-based energy contributions appear dynamically in sustainability analytics and visual dashboards.

6. Best Practices

  • Upload RECs as soon as they are issued to ensure timely reflection in emission reports.

  • Always attach verification files to maintain audit credibility.

  • Regularly reconcile REC data with your electricity procurement records and supplier statements.

  • Distinguish between location-based and market-based Scope 2 calculations to maintain reporting accuracy.

  • Periodically review REC expiry dates and replacement cycles to ensure ongoing compliance with renewable energy commitments.