What is the difference between a REC and Carbon Offset?
This is a complex question, but in general, the difference is that a REC represents the environmental benefits of a MWh of renewable electricity generation, and so it can be said to offset the emissions of a single MWh of average electricity generation. A carbon offset can be matched with emissions from other sources of greenhouse gas emissions (not just electricity generation), like flying and driving. A REC is a measure of the overall environmental benefits associated with the generation of 1 MWh of renewable electricity. These benefits include the fact that few if any greenhouse gases and other pollutants are being emitted from this generation. A carbon offset is a reduction of greenhouse gasses measured in tons of carbon dioxide avoided, sequestered or destroyed. Because of issues of additionality (whether the action causing carbon dioxide to not be emitted is considered to be business as usual), only certain renewable energy facilities are eligible to sell carbon offsets as well a