The benefits of renewable energy is well known, and it will most probably be the way forward towards a sustainable future. But have you heard about how corporate firms purchase Renewable Energy Certificates (RECs)? Corporate firms are able to purchase RECs sold on an open market, which represents an amount of renewable energy that is being fed into the energy grid. The RECs is a way for corporate firms to offset their carbon footprint, and as a form of corporate social responsibility.

https://www.ejbasler.com/precision-machining-and-the-environment/ej-basler-renewable-energy-certificate-02-12-2016/

Although the benefits do not directly impact the environment, purchasing of RECs promotes the development of renewable energy. This provide the opportunity for firms to market and promote themselves as “green” or “eco-friendly”, just because RECs were purchased, which deviates from genuine change which firms are capable of making in the long run. Seen as a quick-fix to environmental change, RECs could conveniently diverted the attention of firms away from making genuine changes towards tackling climate change, many of which lie within company processes which could be streamlined or improve to reduce energy/resource consumption or waste reduction.

Although RECs are not necessarily greenwashing, the benefits from buying RECs do not solve the root issue towards climate change but rather, offsetting the effects of climate change isn’t the best or most sustainable way to move forward in the long term. This would also defeat the purpose if RECs provides the incentive for consumers/firms to increase consumption of resource and energy.

 

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References

Scott, M. (2018, October 29). New rules to crack down on ‘greenwash’ in corporate clean energy claims. Reuter Events Sustainable Business. Retrieved from https://www.reutersevents.com/sustainability/new-rules-crack-down-greenwash-corporate-clean-energy-claims