RECs or Carbon Offsets?
If purchasing renewable, low-impact electricity directly from the local utility is not an option for companies, many of these organizations are wondering whether to select renewable energy certificates (RECs) or carbon offsets as the next best solution. It’s a fairly common question, and one that deserves some clarity. The two options are similar in some respects, but there are some fundamental differences. Both represent an environmental benefit but it is important to know how to distinguish between the two before purchasing. Take RECs, for example:
RECs are used to help facilitate the sale of renewable electricity. The renewable electricity generation is separated into two parts: the electricity produced by a renewable generator and the renewable “attributes” of that generation. These “attributes” are sold separately as RECs. The electricity that was split from the REC can no longer be counted as renewable by whoever buys it.
Carbon offsets represent the act of reducing, avoiding, destroying or sequestering a specific quantity of greenhouse gas (GHG) in one place to “offset” an emission taking place somewhere else. Carbon offsets may be purchased to mitigate GHG emissions created from regular electricity generation or from flights and driving.
Purchasing RECs directly supports renewable energy projects while carbon offsets may also come from sites other than “green” power plants that are sometimes more questionable. Many individuals and organizations choose to purchase carbon offsets as an indirect way of reducing their impact when they must consume but cannot consume “green”. On the other hand, if your company is looking to support the long term growth of renewable energy generation and to lower your carbon footprint, RECs are a better option.
Before making a decision to purchase RECs or carbon offsets, it is important to consider how the purchase fits in with your company’s overall sustainability efforts. Both options represent the environmental benefits of certain actions that can help mitigate climate change and reduce our reliance on fossil fuels. RECs directly support renewable electricity generation.
As RECs and carbon offsets are fundamentally different commodities, representing different environmental attributes and different criteria for qualification and crediting, it is best to look at how each of these options fits within the company’s overall goals.
Buying RECs or Offsets
There are many sources to search when looking to purchase RECs in Canada. The organization Pollution Probe is a great place to start (www.pollutionprobe.org). In the U.S., The Green Power Network also has a great list of REC providers (apps3.eere.energy.gov/greenpower/).
The David Suzuki Foundation and Pembina Institute have created a “Guide to Carbon Offsets for Canadians” to help assess the quality of carbon offsets and reliability of their vendors. The safest approach, they say, is to look for ones that follow relatively strong standards certified by independent auditors (Clean Development Mechanism and The Gold Standard were mentioned). The guide urges purchasers to first make efforts to reduce emissions and then use offsets to help balance the carbon footprint that remains for a truly credible approach. The U.S. Environmental Protection Agency has also produced a “Guide to Purchasing Green Power” in collaboration with the U.S. Department of Energy, the World Resources Institute and Center for Resource Solutions.
Read more about RECs and Carbon Offsets in the TerraChoice eQ feature article on renewable, low-impact energy released this week.