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Regional Environmental Attribute Certificate Accounting and Trading

Regional Environmental Attribute Certificate Accounting and Trading 2025

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The document outlines a business plan for the development of a Regional Environmental Attribute Certificate Accounting and Trading System (REACTS) tailored for New York State. It aims to facilitate the sale and purchase of environmental attributes linked to energy transactions, enhancing the market for renewable energy by addressing current administrative barriers. The report evaluates four potential business models, ultimately recommending a state-based renewables tracking system that aligns with regional systems. It details market demand estimates, stakeholder concerns regarding existing tracking methods, and functional specifications for REACTS, including penalties for misrepresentation to ensure data integrity.

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What is an environmental attribute certificate?

EACs are commonly used to validate claims about compliance with renewable energy standards, voluntary renewable energy purchases, greenhouse gas accounting, and power source and emissions disclosure policies.

How does EACs work?

EACs are held, traded, and retired within tracking systems to ensure each account holder has a unique claim to the specific energy attributes, whether that is used for compliance with a policy mandate or to substantiate voluntary green power use.

What is the difference between EACs and RECs?

Globally, EACs go by many different names. In most European countries, EACs are known as Guarantees of Origin (GOs). In the United Kingdom, they are called Renewable Energy Guarantees of Origin (REGOs), and in the United States and Canada they are called Renewable Energy Certificates (RECs).

What is the difference between RECs and SRECs?

A Solar Renewable Energy Certificate (SREC) is a type of REC that is specifically designated for energy output from eligible solar photovoltaic (PV) systems. SRECs have a significantly higher market value than other RECs.

What is the difference between EAC and PPA?

Unlike PPAs and VPPAs, EACs offer a more accessible entry point into renewable electricity sourcing. They allow companies to reduce their carbon footprint without directly engaging with energy producers or requiring long-term contracts, though they have the ability to be hedged out to 10 years.

What is the difference between RECs and EACs?

These certificates are commonly referred to as energy attribute certificates (EACs) or renewable energy certificates (RECs). EACs are traded within the tracking system, and when an electricity user retires EACs it can claim to be using renewable electricity.

Who verifies RECs?

The Role of Independent Certification Bodies Independent certification bodies are critical to the I-REC system. These organizations are responsible for verifying that the renewable energy generation meets the required standards and that the I-RECs accurately represent this generation.

Are renewable energy certificates worth it?

A number of studies have zeroed in on the influence of voluntary RECsthose purchased by private customerson renewable energy production and have gathered significant evidence to suggest that these certificates have had little to no impact.

Regional Environmental Attribute Certificate Accounting and Trading 2025

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