With China setting ambitious decarbonisation goals and leading the way in installing new renewable energy capacity, the supply and demand for Green Electricity Certificates(GECs)are set to increase. In this blog, we provide a quick guide on GECs, including their benefits and how they can be used. First, let us answer some basic questions about GECs.
What is a Green Electricity Certificate (GEC)?
A Green Electricity Certificate (or GEC) is China’s version of a Renewable Energy Certificate (REC). Similar to most other RECs, each GEC represents 1 MWh of renewable electricity.
GECs are the sole instrument to address indirect emissions associated with the purchase of power (Scope 2) in the Chinese market.
According to China’s National Energy Administration, more than 4.73 billion GECs were issued in 2024.
What are the benefits of using GECs?
- Trace electricity consumption: A GEC enables end-users to track production and consumption of electricity back to a renewable energy source
- Decarbonise: Entities can buy and retire GECs to reduce their carbon footprint
- Meet sustainability standards: By using GECs, businesses can comply with sustainability requirements and standards such as RE100.
- Legal compliance: Using GECs ensures enterprises align with the China market’s regulations
- Demonstrate support for renewable energy: Procuring GECs signal support for green electricity
- Demonstrate care for the environment: Each GEC represents the business’ commitment to create a greener planet for present and future generations
How credible are GECs?
- GECs are verifiable as each certificate provides information to trace the source of production.
- GECs are regulated and administered by the Chinese government
- Most importantly, GECs are recognised by RE100, the global initiative for corporations to adopt 100% renewable energy use
Should my business use GECs?
YES! If you are a domestic Chinese company or an MNC with operations in China, then you should procure and retire GECs to address Scope 2 emissions.
By purchasing and retiring GECs, your company would be able to:
- Reduce carbon footprint: GECs will enable you to claim use of zero or low-emission electricity
- Enhance competitive edge: Using GECs will enable your business to comply with global sustainability standards, making your products and solutions more appealing to sustainability-conscious clients
- Support the global energy transition: By using GECs, you provide additional funding for generators, potentially catalysing more investment in renewables and advancing the energy transition
Does REDEX offer GECs?
Yes. REHash, our leading Renewable Energy Certificate (REC) platform, offers GECs for purchase, providing the opportunity for businesses to participate in China’s renewable energy market, reduce their carbon footprint and contribute to a more sustainable world!
Why should I work with REDEX to procure GECs?
Convenience with one-stop platform
REDEX is the developer and operator of REHash, Asia’s largest REC trading platform. REHash offers a wide selection of REC solutions, including GEC, I-REC(E) and APX TIGR for businesses seeking to address Scope 2 emissions. It is a one-stop platform to manage your RECs, from purchase to retirement.
User friendly platform
Customers are able to transact efficiently on REHash. With a user-friendly interface, users can easily make their REC purchases and retire them
Credible RECs
RECs listed on REHash are sourced from credible REC registries – GEC, I-REC(E) and APX TIGR – that ensure REC integrity, providing peace of mind for customers.
Secure transactions
REHash provides protection for user data and transaction integrity with advanced security protocols. The platform employs encryption and authentication measures, ensuring that every transaction is secure and every user’s data is protected.
Dedicated customer support
Our team of customer service officers provide dedicated support to clients, offering guidance and troubleshooting any issues while using the platform.
Find out how we can support your renewable energy journey in China.
