Frequently Asked Questions

A carbon market is a trading system where parties buy and sell carbon credits, each representing one metric ton of CO₂ equivalent (tCO₂e) avoided or removed from the atmosphere. Carbon markets are a primary policy tool for reducing global greenhouse gas emissions cost-effectively by attaching a financial price to pollution. They divide into compliance markets (legally mandated) and voluntary carbon markets (VCMs, entered by choice). The Integrity Council for the Voluntary Carbon Market (ICVCM) describes the VCM as "a key complementary tool with the potential to remove" barriers to private climate finance at scale. (ICVCM)

Compliance markets are created by law. Governments cap total emissions for covered industries and require companies to hold one credit for every ton they emit. The EU Emissions Trading System (EU ETS) is the largest example, covering roughly 40% of EU greenhouse gas emissions. Voluntary carbon markets (VCMs) allow companies, governments, and individuals to purchase carbon credits on a discretionary basis to offset emissions and support sustainability commitments without legal obligation. The ICVCM defines its mission as enabling "a high-integrity voluntary carbon market that contributes to the goals of the Paris Agreement and the UN's Sustainable Development Goals." (ICVCM)

The voluntary carbon market surpassed US$1 billion in 2021, more than doubling in value from 2020. Analysts at BloombergNEF and McKinsey project demand could increase 15× or more by 2030 as corporate net-zero commitments proliferate. The ICVCM notes that a high-integrity VCM can "efficiently unlock private finance to reduce and remove emissions" at the scale required to meet 1.5°C targets. (ICVCM; Norton Rose Fulbright)

Double counting occurs when the same emission reduction or unit of clean energy is claimed by more than one party. The ICVCM specifies that high-quality credits must not be double counted: "they shall only be counted once towards achieving mitigation targets or goals." (ICVCM CCPs)

On the REX, double counting is prevented through blockchain tokenization and exclusive contractual agreements with all registered producers. As the R-REC Standard states, "the REX requires all our generators, the sellers on the platform, to enter into a contractual agreement, representing and warranting that they will also neither sell, transfer, nor independently claim any of the attributes associated with the power they generate." R-REC Standard, RE100 Compliance, Section 2.1

Retiring a credit permanently removes it from circulation so it cannot be resold or re-claimed. Per the R-REC Standard, "retirement is a critical process where the REC is permanently removed from circulation in the market, thereby concluding its lifecycle. This act ensures that the environmental attributes represented by the R-REC cannot be claimed or used by another party." R-REC Standard, Lifecycle of an R-REC

On the REX, retirement is recorded on the Polygon blockchain, creating a public, permanent, tamper-proof record linked to the retiring entity's identity.

The Core Carbon Principles are a global quality benchmark developed by the ICVCM: "ten fundamental, science-based principles for identifying high-quality carbon credits that create real, verifiable climate impact." (ICVCM) The ten CCPs cover additionality, permanence, no double counting, robust quantification, sustainable development impacts and safeguards, mitigation activity information, program governance, registry, independent third-party validation, and transition toward net-zero emissions. Carbon-crediting programs representing over 98% of the current market (based on 2023 retirements) have applied for the CCP label. (ICVCM Assessment Status)

A Renewable Energy Certificate (REC) certifies that one megawatt-hour (MWh) of electricity was generated from a renewable source. Its unit is energy. A carbon credit certifies the avoidance or removal of one metric ton of CO₂ equivalent. Its unit is emissions. RECs can be converted into carbon credits by applying an emissions factor that translates clean energy generation into the quantity of fossil-fuel emissions it displaces. On the REX, R-RECs generated from mini-grids can be exchanged for Mini-Grid Carbon Credits (MCCs), those generated from US grid-tied systems can be exchanged for AVERT-US Carbon Credits (AVERT-USCCs), and those generated from African grid-tied systems can be exchanged for Ember Grid Reduction Carbon Credits (EGRCCs), using internationally recognized methodologies for each conversion.

A Renewable Energy Certificate certifies that one megawatt-hour (MWh) of electricity was generated from a renewable energy source such as solar, wind, or hydropower. RE100 defines energy attribute certificates (EACs), the category that includes RECs, as "the best method for tracking and establishing ownership of energy attributes." Appendix A, RE100 Technical Criteria, 2025 Because renewable electricity is physically indistinguishable from fossil-generated electricity once it enters the grid, RECs allow the environmental attributes of clean generation to be tracked and traded separately. One REC = one MWh of verified renewable electricity.

RE100 is a global corporate leadership initiative organized by The Climate Group and CDP in which more than 440 companies commit to sourcing 100% of their electricity from renewable sources. Together, RE100 members account for electricity demand equivalent to the consumption of Germany: over 570 TWh per year. (Soldera / RE100) Companies must use recognized energy attribute certificates, such as R-RECs, to substantiate their claims. While the RE100 does not endorse standards themselves, the R-REC Standard has been independently certified by Deloitte as meeting all RE100 technical criteria, making R-RECs from the REX platform a valid instrument for RE100 compliance reporting.

The GHG Protocol's Scope 2 Guidance, described by the World Resources Institute as "the most significant amendment to the Corporate Accounting and Reporting Standard since its inception," allows companies to use contractual instruments such as R-RECs to reflect the actual environmental attributes of the electricity they have procured. (WRI) The market-based method quantifies emissions "based on GHG emissions emitted by the generators from which the reporter contractually purchases electricity bundled with contractual instruments or contractual instruments on their own." (McGuiness Institute) R-RECs from the REX are compatible with Scope 2 market-based reporting, allowing companies to claim lower or zero emissions from electricity purchases.

Carbon neutrality typically means a company offsets all its CO₂ emissions through carbon credits, but may still emit other greenhouse gases. Net zero is a stricter standard requiring reduction of all greenhouse gas emissions as close to zero as possible, with only residual emissions offset by high-quality removals. The ICVCM has designed the CCP framework to support "transition towards net-zero emissions," recognizing that companies "must prioritise cuts to their own emissions through reducing their reliance on fossil fuels, while CCP-labelled carbon credits allow them to take responsibility for the emissions they can't yet cut." (ICVCM)

Permanence refers to the long-term durability of an emission reduction or removal, the assurance it will not be reversed. The ICVCM's Core Carbon Principles require that "GHG emission reductions or removals from the mitigation activity shall be permanent or, where there is a risk of reversal, there shall be measures in place to address those risks and compensate reversals." (ICVCM CCPs) For energy-based carbon credits such as MCCs and AVERT-USCCs issued through the REX, permanence is inherent: displacing fossil fuel combustion that has already not occurred cannot be reversed.

Under the GHG Protocol, corporate emissions are categorized into three scopes. Scope 1 covers direct emissions from sources owned or controlled by the company. Scope 2 covers indirect emissions from purchased electricity, heat, or steam, the category most directly addressed by RECs and R-RECs. Scope 3 covers all other indirect emissions across the value chain. The GHG Protocol is the most widely used framework for voluntary GHG reporting, and is referenced by the California GHG emissions reporting requirements, European Sustainability Reporting Standards (ESRS), and IFRS Sustainability Disclosure Standards. (PwC / GHG Protocol)

In most countries, electricity grids draw from a mix of fossil and renewable sources. Without a certificate proving the origin of the energy, a company cannot credibly claim it used renewable electricity, even if renewable plants exist on its grid. R-RECs solve this by tracking and certifying the specific environmental attributes of each MWh of clean generation, allowing buyers to claim those attributes exclusively.

A bundled REC is sold together with the physical electricity it represents (for example, through a power purchase agreement, or "PPA"). An unbundled REC is sold separately from the electricity. RE100 recognizes both. Appendix A, RE100 Technical Criteria, 2025 Unbundled RECs allow buyers to make credible renewable energy claims without needing direct access to a renewable energy plant.

A power purchase agreement (PPA) is a long-term contract in which a company agrees to buy electricity directly from a renewable energy generator. For companies that cannot sign a PPA, purchasing unbundled R-RECs is the primary alternative. Energy Attribute Certificates remain the largest procurement method across all RE100 member companies, representing 39% of renewable electricity procurement. (Climate Impact Partners)

A mini-grid is a small, locally operated electricity network that generates and distributes power independently of the main national grid. The R-REC Standard describes the rise of "decentralized renewable energy generation, particularly through mini-grid systems" as "a significant global trend," while noting that "current renewable energy certificate (REC) and carbon credit solutions in the voluntary carbon markets lack transparency and fair compensation for energy producers." R-REC Standard, Overview

The Renewvia Environmental Exchange (REX) is a blockchain-based marketplace for renewable energy certificates (R-RECs) and carbon credits. The REX was created because existing markets "lack transparency and fair compensation for energy producers," particularly small-scale and off-grid producers in developing markets. R-REC Standard, Overview The REX addresses this gap by anchoring "every asset in verified renewable energy generation" through "a data-driven approach" that "removes subjectivity from the verification process." R-REC Standard, Overview

An R-REC is a Renewable Energy Certificate issued through the REX platform. Each R-REC represents the verified generation of one megawatt-hour (MWh) of renewable electricity from a registered project. The R-REC Standard guarantees that "each R-REC represents the production of one megawatt-hour of renewable electricity," with its environmental integrity backed by "rigorous criteria to validate the renewable attributes of energy generation." R-REC Standard, Principles — Environmental Integrity R-RECs are implemented as ERC-20 tokens on the Polygon blockchain.

The R-REC Standard was designed to address the specific failures of traditional REC markets. The REX's inclusive design "embraces large- and small-scale renewable energy projects, democratizing access to the carbon market and ensuring that all have the opportunity to engage in sustainable practices." R-REC Standard, Principles — Accessibility and Inclusivity

Four key differences distinguish the REX: (1) it is specifically designed to accomodate renewable energy producers of all sizes; (2) it uses blockchain for full transparency; (3) it aligns with globally recognized standards including RE100 and the ICVCM CCPs; and (4) it operates on "principles of collaboration, knowledge-sharing, and community engagement" with an open-source Standard. R-REC Standard, Principles — Collaboration and Openness

The REX uses the Polygon Mainnet, with R-RECs implemented as tokens via a Solidity smart contract. The R-REC Standard explains that "blockchain technology ensures an immutable and tamper-resistant ledger where R-REC transactions and associated data are recorded decentralized. Once a transaction is added to the blockchain, it becomes virtually impervious to alteration or manipulation." R-REC Standard, Principles — Immutable and Tamper-Resistant

Yes. The R-REC Standard states that "the implementation is open-source on GitHub and operates under the GPLv3 license and is designed with security, flexibility, and transparency at its core." R-REC Standard, Technical Implementation The contract is built on OpenZeppelin's upgradeable contract libraries and implements the ERC-20 standard with additional security features including an emergency pause capability and a comprehensive blacklisting system.

The R-REC Standard commits to aligning with all ten ICVCM CCPs: "To ensure our practices are in harmony with the highest standards for environmental integrity, the REX commits to aligning with the Integrity Council for the Voluntary Carbon Market (ICVCM) Core Carbon Principles (CCPs)." R-REC Standard, Principles — Alignment with ICVCM CCPs The REX achieves this alignment "by employing quantification methodologies that are already established and recognized for their adherence to these principles. This approach avoids the need to develop our own algorithms, instead relying on proven, robust methodologies that align with standards." R-REC Standard, Principles — Alignment with ICVCM CCPs

Yes. The R-REC Standard has been independently certified by Deloitte as meeting all RE100 technical criteria. The Standard notes: "While the RE100 initiative does not officially certify any standards as compliant with their criteria, the R-REC Standard has been independently certified by Deloitte as meeting all RE100 technical criteria." R-REC Standard, RE100 Compliance The Standard also aligns with the ICVCM CCPs through its use of established, peer-reviewed quantification methodologies.

The REX currently covers renewable energy projects in US states and African countries. R-RECs are broken down into tokens for each US state, labeled as RREC-XX (where "XX" is the two-letter state abbreviation). For Africa, tokens are labeled as RREC-AKE (for example), where "A" signifies Africa and "KE" is the country's top-level domain. R-REC Standard, Token Classification

Carbon credits derived from R-RECs are geography-agnostic and can be purchased by any buyer globally.

The R-REC Standard requires verification of four essential static project characteristics: generation capacity in kilowatts-peak, fuel type, physical location (GPS coordinates), and date of first operation. In addition to static data, dynamic generation data, ongoing meter readings, must be verified for each reporting period.

Any of the following are accepted: project commissioning reports approved by local government, countersigned off-taker agreements, land lease agreements, official licenses to operate, equipment purchase and installation contracts, grid connection agreements, insurance documentation, environmental impact assessments, technical inspection certificates from certified third-party bodies, or project handover certificates from third-party installation contractors. "Regardless of the verification method, all projects must provide clear photographs of the installed generation and metering equipment." R-REC Standard, RE100 Compliance — Verification of Static Data

The R-REC Standard explicitly accommodates remote projects: "The REX recognizes that physical site visits may not always be feasible, particularly for remote areas or conflict zones. When a physical site visit is not convenient, project verification can be accomplished through a combination of official documentation that collectively verifies the project's essential characteristics." R-REC Standard, RE100 Compliance — Verification of Static Data This flexibility reflects Renewvia's operational experience deploying solar energy in some of Africa's most remote communities.

Generation data must be recorded through established metering systems. The Standard specifies: "Generation data must be recorded through established metering systems, including dedicated meters like SparkMeter and SteamaCo, integrated inverter monitoring systems from major manufacturers, or comparable energy tracking solutions." R-REC Standard, Verification Documentation Before submission, data must pass four validation checks: completeness, consistency, range, and format. The verified data file is then recorded on the blockchain in the same transaction as the corresponding R-REC minting.

Publishing verified data to the blockchain in the same transaction "ensures transparent, tamper-evident record-keeping that enables independent verification by stakeholders and auditors." R-REC Standard, Verification Documentation — Publication This dual record means any buyer, auditor, researcher, or regulator can independently trace any R-REC back to the exact energy generation data that underlies it at any time without needing to request it from Renewvia.

Yes. "The REX enables developers to secure financing by selling futures for R-RECs on projects that are under development but not yet commissioned." R-REC Standard, Sale of Future Generation This requires documentation including a development license, land rights evidence, equipment procurement proof, a project timeline showing commissioning within 18 months, engineering specifications, and evidence of funding covering at least 70% of total project costs. Upon commissioning, developers must complete the full verification process before R-RECs are issued against actual generation data.

The REX issues five types of environmental assets: state-specific R-RECs for US projects, country-specific R-RECs for African projects, Mini-Grid Carbon Credits (MCCs), AVERT-US Carbon Credits (AVERT-USCCs), and Ember Grid Reduction Carbon Credits (EGRCCs). "For buyers, the decision to utilize geography-specific R-RECs is optional, allowing access to the entire marketplace if there is no requirement for location-specific offsets." R-REC Standard, Token Classification All assets are implemented as ERC-20 tokens on the Polygon Mainnet.

MCCs are carbon credits derived from R-RECs generated by solar mini-grid projects in Africa. The Standard describes them as representing "the carbon reduction achieved through decentralized renewable energy systems. Unbound by geographic constraints, each MCC is denoted simply as 'MCC' without regional distinction. MCCs represent the amalgamation of verified carbon reductions from renewable mini-grids, transcending borders to support a collective approach to carbon offsetting." R-REC Standard, Token Classification — Mini-Grid Carbon Credits

MCCs use UNFCCC CDM methodology AMS-III.BB, which divides mini-grid customers into two types:

Type I-M (metered household consumers): an emission factor of 2.72 tCO₂e/MWh applies to the first 55 kWh of annual consumption per customer, and 0.8 tCO₂e/MWh above that threshold.
Type II (metered non-household consumers): a flat rate of 0.8 tCO₂e/MWh applies to all consumption.

As a worked example: a mini-grid serving 40 households (each consuming 0.1 MWh/year) and 10 businesses (each consuming 0.5 MWh/year), with 500 kg diesel backup, generates 9.608 MCCs for the year. R-REC Standard, Exchange of R-RECs for Carbon Credits Assuming a sale price of $30/tCO₂e, the total value of the MCCs generated that year is $288.24.

AVERT-USCCs are converted from US R-RECs using the EPA's Avoided Emissions and Generation Tool (AVERT). "AVERT-USCCs shed their geographical ties, allowing them to be denoted uniformly as 'AVERT-USCC.'" R-REC Standard, Token Classification As a worked example: a distributed solar project in South Carolina generating 134.914 MWh in 2022, with AVERT's avoided CO₂ rate of 0.6435 tCO₂e/MWh, would yield 86.81 AVERT-USCCs. R-REC Standard, Exchange of R-RECs for Carbon Credits

EGRCCs are carbon credits derived from R-RECs generated by grid-tied renewable energy projects across African countries, using Ember's Yearly Electricity Data (released under CC-BY-4.0) for CO₂ intensity calculations. As a worked example: a solar project in Kenya generating 200 MWh in 2022, with Ember's avoided CO₂ rate for Kenya's grid of 0.10113 tCO₂e/MWh, would yield 20 EGRCCs. R-REC Standard, Exchange of R-RECs for Carbon Credits

Accredited producers must undergo regular compliance monitoring and submit verified generation data for each reporting period.

No. The Standard is unambiguous: "Neither producers nor buyers are obligated to engage the consultancy services of the verification authority for R-REC sales, and they retain the freedom to independently sell their R-RECs to any buyer, at any time, and for any negotiated price." R-REC Standard, Fee Structure — Optional Consultancy Services Optional services include connecting producers with buyers and aggregating R-RECs across multiple projects, but producers retain full autonomy over their sales strategy.

R-RECs satisfy all RE100 technical criteria, as independently certified by Deloitte. RE100 defines its standard for credible renewable energy claims as requiring exclusive ownership of energy attributes, no double counting, geographic market alignment, vintage proximity, and EAC cancellation (retirement). RE100 Technical Criteria, 2025 The R-REC Standard addresses each of these requirements explicitly, including through blockchain-enforced retirement, contractual exclusivity clauses, and country-specific token classification.

The GHG Protocol's Scope 2 Guidance permits companies to use contractual instruments such as R-RECs to reflect actual renewable energy procurement in their market-based Scope 2 calculations. The market-based method quantifies emissions "based on GHG emissions emitted by the generators from which the reporter contractually purchases electricity bundled with instruments or unbundled instruments on their own." GHG Protocol Scope 2 Guidance, 2023 R-RECs meet the GHG Protocol's eight Scope 2 Quality Criteria and, upon retirement, provide blockchain-backed evidence suitable for third-party audit and CDP disclosure.

The R-REC Standard defines retirement precisely: "To establish an exclusive claim, the owner must retire the R-RECs. Retirement is a critical process where the REC is permanently removed from circulation in the market, thereby concluding its lifecycle." Once retired, it is "publicly recorded and recognized as used by the entity that retires it." R-REC Standard, RE100 Compliance — Mechanism for Retirement of R-RECs Retirement is executed by transferring tokens to a special receive-only retirement wallet on the Polygon blockchain.

The R-REC Standard's transparency principle states: "The REX harnesses the power of blockchain technology to create a transparent and auditable record of transactions. This decentralized ledger enhances trust, immutability, and traceability, thereby ensuring the integrity and transparency of the carbon asset market." R-REC Standard, Principles — Transparency Buyers can independently trace any R-REC back to the specific generation data underlying it without needing to request information from Renewvia. This eliminates the opacity and greenwashing risk common in less transparent markets.

The R-REC Standard specifies that "renewable energy producers and other stakeholders can interact with R-RECs through compatible wallets supporting Polygon Mainnet, decentralized applications on the Polygon Mainnet, and smart contract integrations supporting ERC20 tokens. The standard ERC20 interface ensures compatibility with existing blockchain infrastructure, including exchanges, wallets, and DeFi protocols." R-REC Standard, Technical Implementation

The contract includes multiple security layers: an emergency pause function allowing the contract owner to halt "all token transfers in case of emergencies"; a "comprehensive blacklisting system through the BlacklistableUpgradeable contract" that prevents minting to or transfers involving flagged addresses; and token transfer validation through an overridden _update function that "checks blacklist status for both sender and recipient addresses, enforces pause status, and ensures transfers comply with token economics and security rules." R-REC Standard, Technical Implementation