1. Generation of Renewable Energy

Renewable energy producers generate electricity from sources like solar, wind, or hydropower. For every megawatt-hour (MWh) of energy produced, an IREC is issued.

2. Certification and Registration

Each megawatt-hour (MWh) is certified as an I-REC, specifying its origin, including technology, place and time. These IRECs and registered through an accredited body, ensuring traceability, transparency, and compliance with global sustainability standards.

3. Trading

These certificates are then traded, allowing companies to purchase them and claim renewable energy usage. IRECs are traded independently from the physical electricity generated. This allows organizations to purchase certificates without directly consuming the renewable energy produced.

4. Retirement

Companies purchase and "retire" I-RECs in the I-REC Standard registry to claim renewable energy use. Retiring I-RECs in the registry allows for credible Scope 2 emissions reporting, aligned with the Greenhouse Gas Protocol.

Who Regulates IRECs?

All I-REC operations are governed by The International Tracking Standard Foundation (I-TRACK Foundation), a not-for-profit organization. While I-TRACK sets the standards and oversees the system, they do not participate in the buying and selling of I-RECs. Instead, they facilitate trade among consumers, electricity suppliers, electricity generators, and national governments, providing the framework for a transparent and credible renewable energy market.

Who Buys IRECs?

Companies committed to ambitious sustainability targets and emissions reductions are the primary buyers of I-RECs. Businesses across diverse sectors, participating in globally recognized initiatives like RE100 (committing to 100% renewable energy), the Science Based Targets initiative (SBTi) for Paris Agreement-aligned goals, and CDP (Carbon Disclosure Project) for transparent environmental reporting, utilize I-RECs to document and verify their renewable energy consumption. I-RECs are specifically recognized by the Greenhouse Gas Protocol for credible Scope 2 emissions accounting, making them a crucial tool for companies aiming to reduce their carbon footprint and achieve their sustainability objectives.

How Can ProClime Help?

ProClime offers expert guidance and support throughout the I-REC procurement process, from initial consultation and strategy development to certificate sourcing, retirement, and reporting. We help companies navigate the complexities of the I-REC market, ensuring access to high-quality certificates that meet their specific needs and budget. ProClime currently serves clients in India, Sri Lanka, and Nepal, facilitating access to I-REC solutions.