As companies around the world work towards ambitious sustainability and net zero goals, one question arises again and again: “How can we prove that the electricity we use truly comes from renewable sources?”
The answer lies in I-RECs (International Renewable Energy Certificates) — a practical tool that allows organisations to verify renewable energy usage anywhere in the world. They are primarily used to reduce an organisation’s carbon footprint by proving that its electricity consumption is matched with clean, renewable power generation.
1. What Are I-RECs?
I-RECs are certificates that prove one megawatt hour (MWh) of electricity was generated from a verified renewable energy source such as solar, wind, hydro or biomass, and added to the grid.
Each I-REC is unique, traceable and registered under the International REC Standard Foundation, a globally recognised system that ensures transparency and prevents double counting.
In essence, I-RECs provide the environmental attribute of renewable power generation, allowing a business to match its electricity consumption with green energy production even if that power does not come directly from its local grid.
2. How I-RECs Work
- Generation: A renewable energy facility (solar farm, wind turbine, hydro dam, etc.) produces electricity and is registered as an I-REC participant.
- Issuance: For every 1 MWh of renewable electricity supplied to the grid, one I-REC certificate is issued.
- Transfer and Trading: These certificates can be sold to companies, utilities or brokers on the open market, representing the environmental benefit of clean energy generation.
- Redemption: When a business purchases and retires I-RECs, it can claim the renewable energy attributes associated with them. This supports credible reporting in frameworks such as the GHG Protocol (Scope 2 accounting), RE100, or the Science-Based Targets initiative (SBTi).
3. Why I-RECs Matter for Businesses
- Demonstrate Renewable Energy Use
I-RECs allow companies to make verifiable claims of renewable energy consumption without needing to install solar panels or switch energy suppliers.b. Meet Net Zero and ESG Commitments
They are recognised under international sustainability reporting standards and help organisations reduce their Scope 2 emissions (those from purchased electricity).c. Enable Global Coverage
Unlike local green energy programmes, I-RECs operate in over 50 countries, including emerging markets such as the UAE, Saudi Arabia, Oman and Indonesia.d. Support Local Energy Transitions
Purchasing I-RECs channels private capital to renewable energy producers, boosting demand for clean generation and helping drive national decarbonisation efforts.e. Cost-Effective Flexibility
Compared to on-site installations or long-term Power Purchase Agreements (PPAs), I-RECs offer a low-cost, flexible entry point for organisations beginning their sustainability journey.
4. I-RECs vs Carbon Credits
While both I-RECs and carbon credits contribute to sustainability goals, they serve different functions:
I-RECs: Certify renewable electricity generation (1 MWh of renewable power)
Carbon Credits: Offset or remove greenhouse gas emissions (1 tonne of CO₂ equivalent)
In short: I-RECs prove that your power consumption has had a net zero carbon impact, while carbon credits demonstrate that you have reduced or removed an equivalent amount of carbon from the atmosphere.
5. The Growing Role of I-RECs in the Middle East
The Gulf region is becoming a major hub for I-RECs as governments accelerate renewable energy deployment:
- UAE: The Emirates National I-REC Registry, operated by EWEC and MOCCAE, enables corporates to source verified renewable attributes from local projects such as Noor Abu Dhabi and Mohammed bin Rashid Solar Park.
- Saudi Arabia: The Saudi Energy Efficiency Center (SEEC) and PIF-backed projects are creating a national framework for renewable certification.
- Oman and Qatar: Developing registry systems aligned with I-REC standards to attract private investment.
These efforts make I-RECs a powerful mechanism for demonstrating climate leadership in the MENA region.
6. How Businesses Can Get Started
- Measure your electricity consumption to understand where and how much energy you use.
- Set renewable energy targets (for example, 100% renewable electricity by 2030).
- Purchase I-RECs through accredited providers or brokers.
- Retire certificates in your company’s name to claim renewable energy use.
- Report transparently in sustainability or ESG disclosures using the GHG Protocol Scope 2 Guidance.
At Axis Green, we guide clients through this entire journey — from energy footprinting and I-REC sourcing to registry management and retirement — ensuring every claim is verifiable and aligned with international best practice.
7. The Bottom Line
I-RECs are not just a reporting tool; they are a bridge between corporate ambition and renewable reality. They empower organisations to take immediate action, demonstrate accountability and help finance the global energy transition.
As the world moves from carbon intensity towards clean innovation, companies that embrace I-RECs today will be better positioned to lead the energy markets of tomorrow.
Axis Green: Your Partner in Renewable Energy Certification
We help businesses across the UAE and beyond access and retire I-RECs to meet sustainability goals, verify renewable energy claims and strengthen their ESG performance.
