What is the difference between a Carbon Offset and a Renewable Energy Certificate?
A renewable energy certificate (REC) is equivalent to the environmental attributes associated with 1 Megawatt hour (MWh) of renewable energy generation. An offset is a greenhouse gas (GHG) emission reduction product. Offsets can be generated from a variety of project types, including energy efficiency, renewable energy, methane destruction, and forestry. A REC is measured in MWh, whereas an offset is measured in tons of carbon dioxide equivalent. RECs can be used to match a consumer’s emissions from electricity use but are not typically considered an offset unless they meet stringent “additionality” requirements (see next FAQ). A GHG emission reduction product can be used to offset the emissions associated with all activities, including electricity use and travel.
