RECs vs Carbon Offsets
August 02, 2021
Renewable Energy Credits (RECs) are often compared to carbon offsets. However, the two are fundamentally different. A REC is a market-based instrument that represents the rights to the environmental attributes of renewable energy generation. A carbon offset is a project that is a specific activity intended to reduce GHG emissions, increase carbon storage, or enhance GHG removals from the atmosphere. The offset can be used to address direct and indirect emissions associated with an organization’s operations. The EPA offers a good comparison.