Guarantee of origin / REC
A tradable certificate proving that 1 MWh of electricity was generated from a specific source, used to substantiate renewable or low-carbon claims.
A guarantee of origin (GO) in Europe, or a renewable energy certificate (REC) in North America, is an electronic certificate representing the environmental attributes of 1 MWh of generation. It records technology, plant, location and production period. Certificates are tracked in registries (AIB/EECS in Europe; WREGIS, PJM-GATS and M-RETS in the US) and cancelled when used to make a claim, preventing double counting. International I-RECs serve many other markets.
Under the GHG Protocol Scope 2 guidance (2015), companies reporting market-based Scope 2 emissions can claim zero emissions for electricity matched by cancelled certificates. RE100 members rely heavily on GOs, RECs and PPAs, which bundle certificates with power.
Prices vary widely. European GOs traded below 1 EUR/MWh for most of the 2010s, rose to around 8 to 10 EUR/MWh in 2022 amid corporate demand, then fell back to roughly 0.5 to 2 EUR/MWh in 2024 to 2025 as supply grew. US voluntary national wind RECs typically trade at 1 to 5 USD/MWh, while state compliance RECs under renewable portfolio standards can exceed 30 USD/MWh.
Criticism centres on additionality: unbundled certificates from existing hydro rarely drive new capacity. This has led to proposals for 24/7 hourly matching, granular certificates (EnergyTag) and stricter rules in the ongoing GHG Protocol revision.
Related terms
All terms →- PPA (Power Purchase Agreement)
A long-term contract under which a buyer agrees to purchase electricity from a specific generator at a set price or price formula.
- Scope 2 emissions
Indirect emissions from the generation of purchased electricity, steam, heat or cooling consumed by a reporting organisation.
- Carbon intensity of electricity
The mass of CO2 (or CO2e) emitted per unit of electricity generated or consumed, usually expressed in grams per kilowatt-hour (gCO2/kWh).
- Carbon neutral
A claim that the CO2 emissions attributed to an entity, product or event have been reduced and the remainder compensated, usually by purchasing carbon credits.
- Feed-in tariff
A policy that guarantees renewable generators a fixed price per kWh exported, usually for 15 to 20 years, independent of market prices.
- Net zero
A state in which anthropogenic greenhouse gas emissions are balanced by anthropogenic removals over a specified period, so net additions to the atmosphere are zero.