Introduction

As businesses accelerate their climate commitments, International Renewable Energy Certificates (I-RECs) have become a key tool for demonstrating renewable energy consumption globally. However, not all I-RECs are treated equally. A major distinction lies between RE100-compliant I-RECs and non-RE100-compliant I-RECs. Understanding this difference is essential for companies aiming to enhance credibility, meet stakeholder expectations, and align with global sustainability initiatives.

What is RE100?

RE100 is a global corporate initiative led by The Climate Group and CDP, uniting major businesses committed to sourcing 100% of their electricity from renewable sources. To maintain integrity, RE100 has developed strict guidelines on what qualifies as acceptable renewable energy procurement.

RE100-compliant I-RECs: Must adhere to additional quality criteria set by RE100, such as avoiding double counting, ensuring high traceability, and excluding controversial sources (like certain hydro projects or fossil-fuel-linked renewables).
Non-RE100-compliant I-RECs: Standard certificates that follow I-REC rules but may not meet RE100’s stricter guidelines.

Key Differences Between RE100 and Non-RE100 I-RECs

Which is More Beneficial?

RE100-Compliant I-RECs

Best for companies with global sustainability targets (e.g., CDP reporting, SBTi alignment, investor scrutiny).
Provide strong reputational value, helping avoid accusations of low-quality offsets or “greenwashing.”
Demonstrates leadership in the renewable energy transition, signaling credibility to customers, investors, and regulators.

Non-RE100-Compliant I-RECs

Lower cost and easier to access, making them suitable for companies beginning their renewable energy journey.
Still provide evidence of renewable energy consumption but with weaker credibility in international disclosure frameworks.
Beneficial for short-term or budget-conscious buyers but not for organizations aiming for global climate leadership.

Conclusion

While non-RE100-compliant I-RECs may serve as a starting point for smaller companies or those with limited budgets, the strategic advantages of RE100-compliant I-RECs far outweigh the costs for businesses with serious sustainability commitments.

In today’s climate-conscious marketplace, credibility is everything. For organizations that want to strengthen ESG performance, appeal to global investors, and avoid reputational risks, RE100-compliant I-RECs are the more beneficial choice.

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RE100 vs Non-RE100 Compliant I-RECs: Which is More Beneficial?