Global Renewable Energy Certificate (REC) Market Size, Share & Demand Report By Type (Compliance RECs, Voluntary RECs), By Energy Source (Wind, Solar, Hydro, Biomass, Geothermal), By End User (Utilities, C&I, Residential, Government), By Region & Segment Forecasts, 2025–2030
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Global Renewable Energy Certificate (REC) Market Size
According to Reed Intelligence, the global Renewable Energy Certificate (REC) market size was valued at approximately USD 22.6 billion in 2024 and is projected to reach around USD 25.0 billion in 2025. The market is further expected to grow to about USD 52 billion by 2030, expanding at a CAGR of approximately 10.5% during the forecast period (2025–2030). This robust growth is driven by surging corporate sustainability commitments, strengthening compliance-based renewable energy mandates, and expanding international standards enabling cross-border certificate trading.
Key Market Insights
- Corporate and commercial demand is the dominant driver, with many global companies retiring RECs to meet net-zero goals and credibly source renewable energy.
- Voluntary REC markets outpace compliance marketsin many regions, reflecting increasing ESG-focused procurement beyond regulatory requirements.
- International standards such as I-RECs are gaining traction, enabling cross-border trading and harmonized retirement of green attributes.
- Large-scale renewables (especially wind and solar) contribute the bulk of certificate issuance, due to high generation capacity and economies of scale.
- Asia-Pacific is emerging as a global growth hotspot, fueled by rapid renewable capacity deployment and rising corporate sustainability uptake.
- Blockchain and digital registry platforms are increasing transparency and liquidity, reducing fraud risk and transaction costs in certificate trading.
What are the latest trends in the REC market?
Growing Standardization and Cross-Border Trade
One of the most prominent trends is the increasing adoption of international certification standards such as I-RECs. These standardized certificates allow companies to procure and retire renewable energy attributes across national borders, simplifying sustainability tracking and reducing double-counting risks. As more emerging markets develop registries compatible with I-REC, the global liquidity of RECs is expanding. This is enabling multinational corporations to centralize their green energy procurement and reporting, thereby streamlining their ESG initiatives.
Blockchain-Enabled Tokenization and Digital Platforms
Another trend reshaping the REC market is the use of blockchain and distributed-ledger technology. Several registry operators and trading platforms are experimenting with tokenized RECs, which operate on blockchain networks to ensure transparent issuance, transfer, and retirement. This innovation reduces administrative friction, enhances the auditability of transactions, and enables fractional trading. It is helping newer entrants build low-cost, highly liquid marketplaces and is driving greater participation from smaller generators and buyers.
Corporate PPAs Bundled with Certificate Retirement
Corporate Power Purchase Agreements (PPAs) are increasingly being bundled with REC retirements. Rather than simply buying certificates, companies are negotiating long-term supply contracts for renewable energy and simultaneously retiring RECs tied to that generation. This “PPA + REC” model gives corporates both the economic value of green electricity and the environmental attribute making the commitment more tangible and credible. This bundled approach is gaining popularity, especially among large multinational firms aiming to meet ambitious net-zero targets.
What are the key drivers in the REC market?
Corporate Net-Zero and ESG Commitments
The primary driver behind REC market expansion is corporate sustainability ambition. Many large corporations around the world are making net-zero pledges and committing to 100% renewable electricity use. RECs provide a cost-efficient and verifiable mechanism to claim renewable energy consumption, especially for companies that do not own their generation assets. As ESG reporting frameworks mature and investors demand credible green claims, REC procurement has become a central pillar of corporate decarbonization strategies.
Regulatory Mandates and Compliance Schemes
Regulatory frameworks such as Renewable Portfolio Standards (RPS) or renewable obligations in various jurisdictions force utilities and load-serving entities to retire RECs or equivalent certificates. In such compliance markets, regulated players purchase RECs to meet targets imposed by law. These mandates anchor demand for certificates and create a stable baseline volume for REC issuance and retirement. As more regions adopt or tighten these mandates, compliance-driven REC demand strengthens.
Technological Transparency and Efficient Registries
Advances in registry technology including blockchain, real-time tracking systems, and standardized platforms are improving the trustworthiness and liquidity of REC markets. Transparent registries reduce the risk of double-counting, make certificate retirement verifiable, and lower transaction costs. These efficiencies are attracting more buyers and sellers, particularly those requiring stringent audit trails (e.g., corporates, auditors) and enabling smaller generators to issue certificates more easily.
Certificate-Type Insights
The REC market is primarily segmented by certificate type: Voluntary RECs and Compliance RECs. Voluntary RECs currently dominate globally, accounting for about 55–60% of market value as corporations increasingly procure certificates to support internal ESG goals. Compliance RECs form the remainder, driven by regulatory obligations such as Renewable Portfolio Standards in key markets. Furthermore, I-RECs (international certificates) are fast gaining share roughly 30–35% of traded certificates in globally active corporate portfolios because they enable cross-border retirement and standardization, making them particularly attractive for multinational companies.
Use-Case Insights
RECs are primarily used for corporate sustainability: companies retire them to report green energy usage, meet Scope 2 emissions goals, and reinforce ESG credentials. Utilities use RECs to comply with mandated regulatory targets in compliance markets. Public institutions including municipalities, universities, and NGOs are increasingly procuring certificates as part of their sustainability programs. Community-level models are also emerging: small generators (e.g., community solar) issue RECs that local subscribers retire, democratizing participation. Additionally, households or commercial real estate portfolios are beginning to incorporate RECs as part of green tariffs or renewable procurement strategies.
Distribution Channel Insights
Trading of RECs happens via registry platforms, brokerages, and digital marketplaces. Registries issue, track, and retire certificates, while brokers and trading platforms facilitate transactions on behalf of buyers and sellers. Blockchain-based marketplaces are emerging, enabling peer-to-peer trading, tokenization, and automated settlement. Corporations may procure RECs directly via suppliers, developers, or through bundled PPA + REC structures negotiated via energy advisory firms. Advisory firms and sustainability consultancies also play a role as intermediaries, helping buyers design their REC procurement strategies.
Buyer-Type Insights
Corporates are the largest buyer group, leveraging RECs for sustainability reporting and net-zero strategies. Utilities / Power Producers form the next biggest cohort, especially in compliance markets, purchasing RECs to meet regulatory obligations. Public institutions like local governments, schools, and universities are increasingly opting into certificate programs to advance climate goals. Smaller buyers, including community organizations and residential subscribers (via green tariff or community solar schemes), are slowly gaining traction, particularly in regions with open registry structures and fractional-trading platforms.
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Regional Insights
North America
North America remains a leading market, with the U.S. accounting for a major share due to established compliance regimes (state-level RPS) and a large voluntary market. In 2024, North America represented roughly 25–30% of the global REC market. High registry maturity, transparency, and strong corporate demand underpin the region’s dominance.
Europe
Europe holds approximately 20–25% of the global market. Guarantees of Origin (GOs) in the EU and national certification systems drive both corporate and regulatory demand. The region benefits from high sustainability awareness and strong cross-border trading infrastructure.
Asia-Pacific
Asia-Pacific is now one of the fastest-growing regions, contributing about 30–35% to the 2024 global market. Countries such as China, India, Japan, and Australia are seeing rapid renewable generation growth, paired with increasing corporate procurement. Registry systems in the region are evolving to support I-REC or national certificate frameworks.
Latin America
Latin America currently contributes around 5–8% of the REC market. Emerging renewable capacity pipelines in Brazil and Mexico, and growing corporate sustainability initiatives, are driving the development of regional and I-REC-compatible registries.
Middle East & Africa
This region is nascent but growing. With under 5% of global share in 2024, the Middle East and Africa are exploring the development of certificate mechanisms. African corporate sustainability adoption, regional renewable projects, and potential I-REC registry formation could accelerate growth, especially as international buyers engage with emerging market issuance.
| North America | Europe | APAC | Middle East and Africa | LATAM |
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Company Market Share
The global REC market is moderately fragmented. The top players including registry operators, brokerages, and advisory firms collectively account for an estimated 20–30% of the market by value. Competitive intensity has increased with the entry of digital platforms and blockchain-based registries.
Key Players in the REC Market
Recent Developments
- In early 2025,a major registry operator launched a blockchain-based I-REC issuance platform, enabling fractional REC tokenization and near real-time retirement.
- In mid-2024,several multinational corporates signed bundled PPA + REC deals in Asia-Pacific, signaling increased integration of procurement and attribute retirement.
- In late 2024,an advisory firm announced a partnership with a renewable developer to provide “green energy as a service,” coupling on-site generation with REC retirement for corporate customers.
