A VCU represents one tonne of carbon dioxide equivalent under the Verified Carbon Standard. A Renewable Energy Certificate represents the attributes associated with one MWh of renewable electricity generation under its certificate system. They are different products, with different buyers, different prices and different eligibility rules.
VCU: Verified Carbon Unit
A VCU represents one tonne of CO₂-equivalent emissions avoided or removed. It’s a carbon product. Issued under a standard like Verra’s VCS and verified by independent auditors.
VCU buyers are typically:
- Corporates offsetting their carbon footprint
- Compliance buyers under various international and domestic schemes
- Voluntary market participants pursuing net-zero targets
VCU pricing is driven by carbon market dynamics: supply and demand for emission reductions, the rigour of the methodology, the credit’s vintage, and the project’s co-benefits.
REC: Renewable Energy Certificate
A REC represents one megawatt-hour of electricity generated from a renewable source. It’s an energy product. RECs track the renewable attribute of electricity, separate from the electricity itself.
REC buyers are typically:
- Corporates pursuing renewable energy targets (RE100 commitments, for instance)
- Buyers needing to substantiate “100% renewable” claims for marketing or reporting
- Compliance buyers under specific renewable energy mandates
REC pricing reflects renewable energy market dynamics rather than carbon market dynamics: different buyers, different price drivers.
Can the same MWh generate both?
Before offering products from the same generation, we assess the relevant programme rules, contractual rights and environmental claims. Participation in one pathway does not automatically establish that both products can be sold or claimed without restrictions.
Our primary product is VCUs. RECs are available on request, for example for older installations, after an assessment. Discuss the available options for your site with us.