OUR MARKETS | Indonesia Commodity & Derivatives Exchange (ICDX)

REC is a Renewable Energy Certificate or green energy certificate that can be used to claim electricity consumption from Renewable Energy sources. REC proves that every megawatt-hour (MWh) of electricity used by customers comes from renewable or non-fossil fuel generators. Therefore, REC buyers can comply with sustainability reporting standards and support the clean energy transition.

Why are RECs important for companies?

Many companies are seeking to switch to renewable energy to tackle their climate impact. Nevertheless, the upfront capital costs are required, and space constraints can make it difficult to commit to energy transition on a large scale. Renewable Energy Certificates (RECs) are an efficacious way for companies to tackle their Scope 2 emissions within budget, while laying the foundation for a longer-term energy transition.

Using RECs is a straightforward way to support your company's sustainability goals, and it can be used to validate the electricity consumption from low- or zero-emissions sources.

RECs are accepted by the GHG Protocol, CDP, RE100, SBTi, and others for Scope 2 Emissions reporting.

How do RECs work?

RECs play a crucial role in calculating, tracking, and establishing ownership of renewable electricity generation and usage. Since electricity from renewable energy sources cannot be distinguished from electricity generated from other sources, RECs function as a mechanism to differentiate and track renewable energy within the power grid.

How can RECs accelerate the clean energy transition?

RECs play a crucial role in incentivizing renewable energy investments, reducing dependence on fossil fuels, and accelerating the clean energy transition. As countries worldwide adopt RECs and expand their renewable energy programs, the global transition towards a clean and sustainable energy future becomes increasingly achievable.

By understanding the concept and implementation of RECs, businesses can actively participate in the renewable energy market, support the growth of renewable energy sources, particularly in Indonesia, and contribute to a more sustainable and greener world.

Why trade RECs on ICDX?

Instant Trade Settlement

The settlement of REC transactions is conducted instantly or in real time, eliminating the need for prolonged waiting periods.

Price Transparency

Transparent and accessible pricing information for REC transactions is made available to all relevant parties.

Mitigation of Counterparty Risk

There is no risk of default in payment or delivery by either party involved in the REC transaction.

Elimination of the Need for Bilateral Agreements

Bilateral agreements are unnecessary; the system functions automatically under standardized rules.

Standards and Registries RECs on ICDX

The International Tracking Standard

I-REC or I-TRACK is a global standard and system tracking environmental attributes of renewable electricity, with Evident maintaining the registry.

Tradable Instruments for Global Renewable (TIGR)

The TIGR enables transparent, secure, and reliable tracking of RECs, which is backed by APX quality standards.

Choose your role to trade RECs on ICDX

SUPPLIER

Participants who have renewable energy generators and use a clearing house custodian to issue Renewable Energy Certificates (RECs). The role of a supplier is to sell and retire RECs. REGISTER NOW

TRADER

Participants who have a registry account to connect with the clearing house custodian. The role of a trader is to sell, buy, retire, and withdraw RECs. REGISTER NOW

USER

Participants who have the ambition to meet the Scope 2 reporting obligations and achieve net-zero emissions targets. The role of a user is to buy and retire RECs. REGISTER NOW

To tackle climate impact, leading companies rely on the ICDX REC Market

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