On September 10th, Resurety and S&P Global Energy experts came to together to discuss the shifting RECs landscape.

Continue reading for a summary of the discussion, to catch the webinar replay, and to access our co-authored white paper: 'From Volume to Impact: The Rise of Emissions-Adjusted RECs.’

For years, renewable energy certificates (RECs) have served as the universal metric for clean energy: one megawatt-hour generated equals one REC. This simple framework was useful in driving early clean energy investment globally. But carbon accounting is evolving. As renewable penetration grows across power grids, it is becoming clear that clean power impacts vary significantly depending on when and where that energy is produced. 

In our recent webinar, Resurety’s Devon Lukas (Senior Consultant) and Robert Keene (Senior Director of Consulting) alongside S&P Global Energy’s Vittoria Morini (Americas Renewables Manager) and Alice Mason (Global Head of Renewables Pricing) broke down how Emissions-Adjusted RECs (EA-RECs) combine granular grid emissions data with traditional market frameworks to help corporations make smarter, impact-driven procurement decisions.

Unpacking the impact: How EA-RECs & LMEs work

Traditional RECs certify clean energy generation, but they treat every megawatt-hour (MWh) the same whether it replaces dirty coal or feeds into a grid already overflowing with clean power. EA-RECs solve this gap by integrating locational marginal emissions (LMEs) to reflect real-world carbon reduction.

Rather than relying on static regional averages, LMEs serve as the engine behind EA-RECs by measuring carbon displacement at the exact hour and location generation occurs. As Devon Lukas explained, "LMEs calculate exactly which marginal plant gets turned down or dispatched down in real-time, accounting for grid congestion and local transmission constraints.”

• Pricing true carbon abatement: Dividing the standard REC price by local LME data, EA-RECs shift the conversation from energy volume to climate impact: dollars per metric ton of CO₂ abated.  
• Regional differences matter: In fossil-heavy grids, high LMEs yield up to 30% more emissions displacement than in ERCOT, where heavy renewable penetration often leads to curtailment. 

• Setting price: S&P Global Platts uses their daily Market-on-Close (MOC) methodology to establish baseline REC market values. 

S&P Global's Vittoria Morini summarized that "The level is set by the REC market, while the spread is set by the emission data."

How EA-RECs optimize corporate procurement

Resurety’s Robert Keene walked through real-world scenarios showing how procurement teams can use EA-RECs to optimize their portfolios without altering standard underlying contract structures.

• Optimizing budgets: Transition to high-impact regional RECs to maintain baseline carbon emissions reductions while reducing total REC spend by up to 30%.
• Maximizing climate impact: Shift REC purchases to dirtier grid locations to boost carbon displacement by nearly 50% on a flat REC budget. 

Keene highlighted that EA-RECs tell you the impact of clean energy on grid carbon emissions by providing an extra layer of granularity and visibility compared to standard RECs. 

What is driving the market?

Large technology companies, data centers, and sustainability-forward corporates are leading the charge on EA-REC adoption. This is being driven by three main factors:

1. Anti-greenwashing pressure: Stakeholders are demanding proof of real-world carbon abatement, rather than just volumetric claims.
2. Internal carbon pricing: Companies are beginning to evaluate projects on a "dollars per ton of CO₂" basis, rather than "dollar per MWh."
3. GHG protocol updates: Anticipated updates to Scope 2 reporting guidelines are moving toward location-based granularity and avoided emissions accounting.

The energy transition is moving from a volume-based mindset to an impact-based mindset. Relying purely on traditional RECs leaves carbon impact on the table, and corporate buyers now have the data to do something about it.

Ready to take your clean energy procurement strategy to the next level? Access the newly released white paper ‘From Volume to Impact: The Rise of Emissions-Adjusted RECs’ for an in-depth look at the framework behind EA-RECs here.

Explore carbon accounting: Check out our two-part series on consequential accounting to learn how measuring impact drives real grid decarbonization.

And don't forget to check out the full webinar replay.