What Is a Green Energy Certificate and How Does It Work?
Published: [Insert original publication date]
Last updated: 28 October 2026
Author: Asiarecs
As businesses across Asia work to reduce their carbon footprint, renewable electricity is becoming an increasingly important part of corporate sustainability strategies. However, companies that purchase electricity from a conventional grid may not be able to identify the exact source of the power they consume.
A green energy certificate helps address this challenge by tracking the renewable attributes associated with electricity generation. Businesses can purchase and redeem eligible certificates to support renewable electricity claims and, where applicable, emissions reporting.
In Singapore and other Asian markets, understanding how certificates are issued, verified, priced and retired is essential to making credible sustainability claims. This guide explains how green energy certificates work, how they differ from carbon credits, and what businesses should consider before purchasing them.
What Is a Green Energy Certificate?
A green energy certificate represents the environmental attributes of electricity generated from renewable sources, such as solar, wind, or hydropower. In many systems, one certificate equals 1 megawatt-hour (MWh) of renewable electricity.
Electricity and its certificates can be sold separately, a practice known as unbundled procurement. Certificates do not mean renewable electricity is delivered directly to the buyer, but they can support eligible renewable energy claims when properly redeemed.
How Do Green Energy Certificates Work?
A certificate typically passes through four main stages.
Renewable electricity is generated
A qualifying renewable energy facility generates electricity. Depending on the registry and scheme, the facility must be registered and its generation data verified against the applicable requirements.
Certificates are issued and recorded
An authorised issuer or registry records eligible generation and issues the corresponding certificates. Each certificate contains information defined by its scheme, which may include the generating facility, energy source, production period and quantity of electricity.
Certificates are transferred to a buyer
Businesses can obtain certificates directly where they are eligible to participate in the registry, or through a supplier, broker or other authorised market participant.
Procurement may be bundled with an electricity supply agreement or unbundled, meaning the certificates are purchased separately from the physical electricity.
Certificates are redeemed or retired
Once a certificate is used to support a claim, it should be redeemed or retired according to the applicable system. This prevents the same certificate from being used by multiple buyers to substantiate separate claims.
Buyers should retain the relevant redemption statement or registry evidence, along with purchase records and supporting generation information.
What Are the Different Types of Green Energy Certificates?
The name and eligibility of a certificate depend on the market and tracking system. Common examples include:
Certificate type | Main market or context | What to know |
Renewable Energy Certificates (RECs) | United States and other markets using the term | Specific eligibility and tracking rules vary by programme and jurisdiction. |
Guarantees of Origin (GOs) | European Union and related markets | Used to disclose the origin of energy under the applicable European framework. |
International Renewable Energy Certificates (I-REC(E)) | International markets where the system operates | Track renewable electricity attributes under the I-REC(E) product code. |
APX TIGRs | Participating markets | A registry-based tracking system for renewable energy attributes; confirm current market availability and applicable rules. |
Green electricity tariffs | Electricity supplier products | May bundle renewable electricity attributes into an electricity supply product; the underlying evidence and claim rules should be checked. |
These instruments should not automatically be treated as interchangeable. Geographic eligibility, generation vintage, registry requirements, reporting rules and local standards can affect whether a certificate supports a particular claim.
Businesses operating across multiple countries should check the requirements of each relevant jurisdiction and sustainability framework before purchasing.
How to Buy and Verify a Green Energy Certificate in Singapore
For Singapore-based companies, the right procurement approach depends on the intended claim, the location of electricity consumption and the applicable rules.
Step 1: Define your objective
Decide whether the goal is to support a renewable electricity consumption claim, contribute to renewable energy development, meet a customer requirement or support corporate greenhouse gas reporting.
These objectives can overlap, but they are not necessarily equivalent.
Step 2: Confirm eligibility for your intended claim
Check whether the certificate’s market, generation source, production period and tracking system meet the relevant reporting requirements.
This is particularly important in Singapore because the national guidance on acceptable renewable electricity claims has recently been updated.
Step 3: Compare suppliers and certificate options
Ask potential suppliers about certificate origin, generation technology, volume, production period, price, transaction fees and redemption arrangements. Also confirm whether the quoted price includes administrative or registry charges.
Step 4: Check documentation and traceability
Request information identifying the generation facility, certificate system, quantity and relevant production period. Confirm that the seller can provide valid registry documentation and evidence of redemption.
Step 5: Redeem the certificates and retain records
Ensure the certificates are redeemed for the correct beneficiary and reporting period. Retain the redemption statement, invoices and supporting information for internal controls, external assurance and future reporting.
Important Singapore update: SS 673
On 27 October 2026, Singapore’s Energy Market Authority (EMA), Enterprise Singapore and other government bodies announced updates to SS 673, the Code of Practice for Renewable Energy Certificates.
Under the amendments, companies claiming renewable electricity use in Singapore should use certificates linked to electricity supplied to Singapore’s power grid, including:
- Eligible local renewable energy generation
- Approved low-carbon electricity imports
Certificates from overseas projects that do not supply Singapore’s grid may support regional renewable energy development, but cannot substantiate claims of renewable electricity consumption in Singapore.
The updated SS 673 edition was announced for purchase from mid-November 2026. Businesses should check the official EMA announcement and latest standard before making claims.
How Do Green Energy Certificates Support Corporate Sustainability?
Green energy certificates can help businesses document renewable electricity procurement and support eligible emissions reporting.
Under the GHG Protocol Scope 2 Guidance, companies may use two approaches to account for emissions from purchased electricity:
- Location-based method: Uses average emissions factors for the electricity grid where consumption occurs.
- Market-based method: Uses qualifying contractual instruments and supplier-specific information, where applicable, to reflect the electricity attributes a company has purchased.
Certificates can support emissions reporting if they meet relevant standards, but they do not automatically reduce reported emissions. Businesses should check reporting rules and document certificate details to ensure accurate and reliable sustainability claims.
What Affects Green Energy Certificate Prices?
Green energy certificate prices are influenced by several factors:
- Country and market: Supply, demand and local regulations vary between markets.
- Generation technology: Solar, wind, hydro and other eligible technologies may command different prices.
- Generation vintage: The period in which electricity was generated can affect eligibility and value.
- Supply and demand: Available certificate volumes, buyer demand and renewable energy procurement targets influence market prices.
- Certificate quality and eligibility: Traceability, documentation, geographic matching and reporting requirements can affect suitability and cost.
- Transaction and service fees: Brokerage, registry, administration and redemption services may add to the total procurement cost.
There is no single universal price for a green energy certificate. When comparing quotes, businesses should compare like-for-like certificates and confirm whether the price includes all transaction and redemption costs.
Green Energy Certificates Across Southeast Asia
Southeast Asia is not a single, uniform certificate market. National policies, tracking systems, electricity markets and eligibility rules differ, so businesses should evaluate certificates based on the country and the intended claim.
- Singapore: The market is evolving alongside local renewable deployment, electricity imports and clearer rules for renewable electricity claims under SS 673.
- Malaysia: Businesses should examine the applicable national renewable electricity programmes and certificate arrangements, including the relevant rules for the specific procurement product.
- Indonesia: Buyers should confirm the current registry or market mechanism, project eligibility and documentation available for the certificates being offered.
- Philippines: Certificate procurement should be assessed against applicable renewable energy market rules and the reporting purpose.
- Vietnam and Thailand: Buyers should verify current issuer coverage, registry arrangements and the eligibility of available certificates before committing to a purchase.
For organisations with operations in several countries, it is important to distinguish between certificates that support a local renewable electricity consumption claim and certificates purchased to support renewable energy development elsewhere in the region.
A regional procurement strategy can create efficiencies, but each certificate must still meet the requirements of the specific claim being made.
Build a Credible Renewable Energy Procurement Strategy with Asiarecs
Choosing the right green energy certificate involves more than comparing prices. Businesses should consider certificate eligibility, generation source, traceability, redemption, reporting requirements and the precise sustainability claim they intend to make.
Asiarecs helps businesses navigate renewable energy certificate procurement across Asia, with support for sourcing, verification, redemption and sustainability reporting. Whether your organisation is beginning its renewable electricity journey or refining an existing procurement strategy, a well-documented approach can help strengthen the credibility of your claims.
Contact Asiarecs to discuss your renewable energy certificate requirements and identify options aligned with your organisation’s goals.
Frequently Asked Questions
How long is a green energy certificate valid?
There is no universal validity period for every certificate type. Some systems treat a certificate as a record of historical generation, while reporting frameworks or local rules may restrict which production periods can be used for a particular claim. Check the applicable registry rules and reporting requirements before purchasing.
How much does a green energy certificate cost?
Prices vary by country, technology, generation period, supply and demand, certificate eligibility and service fees. Request a quote that specifies the certificate type, volume, production period, included fees and redemption arrangements.
How can I verify that a certificate is genuine?
Ask for registry documentation and a redemption statement, and verify it through the relevant registry or authorised verification process. For I-REC(E), the official I-TRACK FAQ describes verification using the redemption statement’s QR code and verification key.
Is a green energy certificate the same as a carbon credit?
No. A green energy certificate represents renewable electricity attributes, while a carbon credit represents a quantified emissions reduction or removal, or another eligible emissions unit under its programme. They support different types of claims.
Can a company use certificates for Scope 2 reporting?
Potentially, yes. Certificates may support market-based Scope 2 accounting if they satisfy the relevant quality criteria and reporting requirements. Companies should consult the GHG Protocol Scope 2 Guidance and the rules of any other applicable framework.
Does buying a certificate mean renewable electricity is physically delivered to my business?
Not necessarily. Certificates can be traded separately from the physical electricity supplied through the grid. They track renewable attributes rather than guaranteeing that specific renewable electrons reach a particular building.
Can certificates from overseas projects support a renewable electricity claim in Singapore?
Not in every case. Under the SS 673 amendments announced on 27 October 2026, claims of renewable electricity consumption in Singapore should be supported by certificates linked to renewable electricity supplied to Singapore’s grid. Certificates from overseas projects that do not supply electricity into Singapore may support regional renewable energy development, but should not substantiate a claim that electricity consumed in Singapore is renewable. Refer to the latest official guidance for full details.
About Asiarecs
Asiarecs is a Singapore-based renewable energy solutions provider helping businesses understand and procure Renewable Energy Certificates (RECs) to support credible renewable electricity claims and corporate sustainability goals. With a focus on Singapore’s evolving REC landscape and renewable energy reporting requirements, Asiarecs provides practical guidance on certificate sourcing, verification, redemption, and the use of RECs in Scope 2 emissions reporting. Drawing on experience across regional renewable energy markets and recognised tracking systems such as I-REC and APX TIGRs, Asiarecs helps organisations navigate certificate eligibility, traceability, and procurement considerations in Singapore and across Asia.
