Renewable Energy Markets  

A rapid increase in renewable electricity generation is central to achieving the goals of the Paris Agreement. To align with net zero by mid-century, renewable power capacity must expand significantly over the coming decades. 

The private sector plays a critical role in accelerating this transition. Many companies have adopted ambitious renewable electricity targets as part of broader decarbonisation strategies. However, direct procurement through on-site generation or power purchase agreements is not always feasible due to regulatory, financial or infrastructure constraints. 

Renewable energy markets provide an additional pathway for companies to support and claim renewable electricity consumption. 

Renewable energy markets allow electricity consumers to purchase the environmental attributes associated with renewable generation, separate from the physical electricity itself. 

These attributes are typically issued as Energy Attribute Certificates, also known as Renewable Energy Certificates. Each certificate represents one megawatt-hour of electricity generated from a renewable source and delivered to the grid. 

By purchasing and retiring these certificates, companies can demonstrate that their electricity consumption is matched with renewable generation within a recognised tracking system. 

While renewable energy certificates are widely used, concerns have been raised in some markets about additionality and real-world impact. In certain contexts, certificates may reflect generation that would have occurred regardless of voluntary demand. 

To ensure credibility, renewable energy procurement should: 

• Be transparently tracked through recognised registries 
• Avoid double counting 
• Contribute to the expansion of renewable capacity 
• Align with broader decarbonisation strategies 

Corporate renewable electricity claims should also be consistent with recognised greenhouse gas accounting frameworks and reflect genuine progress towards emissions reduction targets. 

Gold Standard labelled Renewable Energy Attribute Certificates are issued in conjunction with internationally recognised tracking systems such as I-RECs. 

Each certificate represents one megawatt-hour of electricity generated from a renewable source and delivered to the grid. In addition to the underlying tracking system requirements, Gold Standard applies further principles designed to strengthen impact and credibility. 

These principles focus on: 

• Supporting real-world emissions reductions 
• Encouraging the addition of new renewable energy capacity 
• Upholding environmental and social safeguards 
• Promoting transparency in claims and use 

This approach aims to enhance confidence that voluntary renewable energy purchases contribute meaningfully to the clean energy transition. 

Renewable energy procurement is often a cornerstone of corporate decarbonisation plans. It can: 

• Reduce Scope 2 emissions associated with purchased electricity 
• Signal demand for clean energy in emerging markets 
• Complement energy efficiency and electrification strategies 
• Support broader climate and sustainability commitments 

However, renewable energy markets are not a substitute for reducing overall energy demand or addressing emissions across value chains. They should form part of a comprehensive climate strategy grounded in science-based targets and transparent reporting. 

As global electricity demand grows, scaling renewable generation is both a climate and economic imperative. Well-functioning renewable energy markets can mobilise private finance, create investment signals and help bridge gaps where policy frameworks are still evolving. 

Gold Standard supports the development of credible renewable energy markets that deliver measurable climate impact while maintaining high standards of environmental and social integrity.