What’s the difference between a REC and a carbon offset?
TerraPass funds clean energy from sources such as wind farms through the purchase of Renewable Energy Certificates (RECs). RECs are similar to carbon offsets in some ways — both are financial instruments that represent a quantifiable environmental benefit. But because RECs represent clean energy production, they are denoted in terms of electrical power (megawatt-hours) rather than in tons of carbon dioxide. Each REC represents one megawatt-hour of clean energy production. Clean energy from sources such as wind farms reduces carbon emissions by lowering the proportion of grid electricity derived from dirty fuel sources such as coal and natural gas. In order to determine exactly how much carbon dioxide is reduced from a purchase of RECs, we first need to know the average amount of carbon per megawatt-hour of conventional electricity. This figure varies by region, because every geographical area uses a slightly different mix of fuel sources to create electricity. If you live in the U.S.,
Renewable Energy Certificates (RECs) and carbon offsets are both financial instruments that represent a quantifiable environmental benefit associated with an activity. A REC represents the environmental attributes derived from 1 megawatt-hour of renewable energy generation. A carbon offset represents the prevention or sequestration of 1 metric ton of carbon dioxide-equivalent emissions. While TerraPass does not directly sell Renewable Energy Certificates through our website, we can help with RECs and other options for renewable energy. Contact a Carbon Balanced Business Advisor to learn more.
