Green certificate
Encyclopedia
A Green Certificate - terminology used in Europe - also known as Renewable Energy Certificates (RECs) in the USA, are a tradable commodity proving that certain electricity is generated using renewable energy sources. Typically one certificate represents generation of 1 Megawatthour of electricity. What is defined as "renewable" varies from certificate trading scheme to trading scheme. Usually, at least the following sources are considered as renewable:
  • Wind
    Wind power
    Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....

     (often further divided into onshore and offshore)
  • Solar
    Solar power
    Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar radiation, along with secondary solar-powered resources such as wind and wave power, hydroelectricity and biomass, account for most of the available...

     (often further divided into photovoltaic and thermal)
  • Wave (often further divided into onshore and offshore) and tidal (often further divided into onshore and offshore)
  • Geothermal
    Geothermal
    Geothermal is related to energy and may refer to:* The geothermal gradient and associated heat flows from within the Earth- Renewable technology :...

  • Hydro (often further divided into small - microhydro - and large)
  • Biomass
    Biomass
    Biomass, as a renewable energy source, is biological material from living, or recently living organisms. As an energy source, biomass can either be used directly, or converted into other energy products such as biofuel....

     (mainly biofuel
    Biofuel
    Biofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases...

    s, often further divided by actual fuel used).


Green certificates represent the environmental value of renewable energy generated. The certificates can be traded separately from the energy produced. Several countries use green certificates as a mean to make the support of green electricity generation closer to a market economy instead of more bureaucratic investment support and feed-in tariffs. Such national trading schemes are in use in e.g. Poland, Sweden, the UK, Italy, Belgium (Wallonia and Flanders), and some US states.

Once in the grid, renewable energy is impossible to separate from the conventionally generated energy. This makes purchasing of a green certificate equal to purchasing a claim, that the certificate owner consumed energy from the renewable portion of the whole energy in the grid. Therefore certificate purchase does not affect how much renewable energy was actually generated - only how it was distributed.

In contrast to CO2e
Carbon dioxide equivalent
Carbon dioxide equivalent and Equivalent carbon dioxide are two related but distinct measures for describing how much global warming a given type and amount of greenhouse gas may cause, using the functionally equivalent amount or concentration of carbon dioxide as the reference.- Global warming...

-Reduction certificates, e.g. AAU
Assigned amount units
An Assigned Amount Unit is a tradable 'Kyoto unit' or 'carbon credit' representing an allowance to emit greenhouse gases comprising one metric tonne of carbon dioxide equivalents calculated using their Global Warming Potential....

's or CER
Certified Emission Reduction
Certified Emission Reductions are a type of emissions unit issued by the Clean Development Mechanism Executive Board for emission reductions achieved by CDM projects and verified by a DOE under the rules of the Kyoto Protocol...

's under the UNFCC, which can be exchanged worldwide, Green Certificates cannot be exchanged/traded between e.g. Belgium and Italy, let alone the USA and the EU member States.

See also

  • EKOenergy
    EKOenergy
    EKOenergy label is an international ecolabel for energy. It is managed by the Finnish Association for Nature Conservation in cooperation with the Swedish Society for Nature Conservation...

  • Energy economics
    Energy economics
    Energy economics is a broad scientific subject area which includes topics related to supply and use of energy in societies. Due to diversity of issues and methods applied and shared with a number of academic disciplines, energy economics does not present itself as a self contained academic...

  • Energy accounting
    Energy accounting
    Energy accounting is a system used within industry, where measuring and analyzing the energy consumption of different activities is done to improve energy efficiency.-Energy management:...

  • Emissions trading
    Emissions trading
    Emissions trading is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants....

  • Feed-in Tariff
    Feed-in Tariff
    A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...

  • Green energy
  • Green tags
    Green tags
    Renewable Energy Certificates , also known as Green tags, Renewable Energy Credits, Renewable Electricity Certificates, or Tradable Renewable Certificates , are tradable, non-tangible energy commodities in the United States that represent proof that 1 megawatt-hour of electricity was generated...

  • Guarantee of origin
    Guarantee of origin
    Since electricity is a commodity, it used to be impossible to claim any specific quality for a particular quantity of electricity. However the use of guarantees of origin is changing this...



External links

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