RECs vs iRECs: What Organizations Should Know About Global EAC Markets
Author
Karbon-X
As organizations place greater focus on Scope 2 emissions, renewable electricity procurement, and sustainability reporting, Energy Attribute Certificates (EACs) are becoming an increasingly important part of global environmental markets.
However, understanding the differences between Renewable Energy Certificates (RECs), International Renewable Energy Certificates (iRECs), and broader EAC frameworks can often become confusing, particularly for organizations operating across multiple regions and reporting frameworks.
For companies evaluating renewable energy procurement strategies, understanding how these instruments function within different markets is becoming increasingly important as reporting expectations and global energy markets continue evolving.
What Are Energy Attribute Certificates (EACs)?
Energy Attribute Certificates (EACs) are market-based instruments that represent the environmental attributes associated with renewable electricity generation.
Organizations may use EACs as part of broader renewable electricity procurement and Scope 2 reporting strategies. Different certificate systems operate across different regions and markets, with varying frameworks, registries, and eligibility requirements depending on geography.
Two of the most commonly referenced certificate systems are:
Renewable Energy Certificates (RECs)
International Renewable Energy Certificates (iRECs)
While both serve similar high-level purposes, they operate within different market structures and geographic frameworks.
What Are RECs?
Renewable Energy Certificates (RECs) are commonly used within North American renewable energy markets. In general, a REC represents the environmental attributes associated with one megawatt-hour (MWh) of renewable electricity generation.
RECs are often used by organizations seeking to support renewable electricity procurement strategies or address Scope 2 electricity-related emissions within recognized reporting frameworks.
In North America, REC markets may vary depending on:
jurisdiction
regulatory structures
voluntary market participation
regional renewable energy programs
As renewable energy procurement continues expanding across corporate markets, RECs have become an increasingly recognized component of broader sustainability and energy strategies.
What Are iRECs?
International Renewable Energy Certificates (iRECs) operate within international markets where traditional REC systems may not exist or where different renewable energy tracking frameworks are required.
iRECs are commonly referenced in emerging and international markets across regions such as:
Latin America
Asia
Africa
the Middle East
For organizations operating globally, iRECs may play a role in supporting renewable electricity tracking and international Scope 2 reporting approaches across multiple jurisdictions.
As international renewable energy markets continue developing, many organizations are evaluating how regional EAC systems align with broader operational, reporting, and procurement considerations.
RECs vs iRECs: The Differences
While RECs and iRECs are both forms of Energy Attribute Certificates, the primary differences generally relate to geography, registry frameworks, and market structure.
Geographic Use
RECs are most commonly associated with North American renewable energy markets, while iRECs are designed for use across eligible international markets where alternative certificate systems may not be available.
Registry and Market Structure
Different EAC systems operate under different registries, tracking frameworks, and market structures depending on the region in which the renewable electricity is generated.
Organizations operating internationally often evaluate which certificate frameworks align with their operational footprint and reporting considerations.
Renewable Procurement Strategy
For companies operating across multiple regions, renewable electricity procurement strategies may involve a combination of certificate systems depending on market availability and operational needs.
As global environmental markets continue evolving, organizations are increasingly placing greater emphasis on procurement visibility, reporting consistency, and long-term renewable energy planning.
Why EAC Markets Are Becoming More Important
As organizations continue strengthening sustainability reporting and emissions management strategies, renewable electricity procurement is becoming a growing area of focus across both voluntary and compliance-driven environments.
Many companies are now evaluating:
Scope 2 reporting considerations
renewable electricity procurement approaches
supply chain expectations
investor and stakeholder transparency
international operational exposure
For multinational organizations, navigating renewable energy procurement across different jurisdictions may require a clearer understanding of how EAC markets function regionally and internationally.
This is contributing to growing interest in global environmental markets and broader renewable energy procurement strategies.
Understanding Renewable Procurement Across Global Markets
Organizations operating across multiple jurisdictions are increasingly seeking greater visibility into renewable energy procurement options and evolving EAC frameworks.
As environmental markets continue developing globally, companies are placing greater emphasis on:
operational consistency
reporting readiness
renewable procurement visibility
long-term energy strategies
international market alignment
Karbon-X supports organizations operating across global environmental markets through market access, procurement support, and experience navigating evolving renewable energy and compliance environments.
Frequently Asked Questions
What is an Energy Attribute Certificate (EAC)?
An Energy Attribute Certificate (EAC) is a market-based instrument representing the environmental attributes associated with renewable electricity generation.
What is the difference between RECs and iRECs?
RECs are primarily associated with North American renewable energy markets, while iRECs operate across eligible international markets.
Are RECs and iRECs used for Scope 2 reporting?
Organizations may use RECs and iRECs as part of broader renewable electricity procurement and Scope 2 reporting strategies depending on the applicable reporting framework and market.
Why do organizations use EACs?
Organizations may use EACs to support renewable electricity procurement strategies, sustainability reporting objectives, and broader environmental market participation.
