The American Council On Renewable Energy has released a standard form contract for national trading of Renewable Energy Certificates.
The contract is intended as infrastructure to help buyers and sellers transact, foster market mechanisms to promote renewable resource development and stave off potential balkanization of U.S. RECs markets, according to Jeremy Weinstein, Co-Chair of the working group. The contract is technology neutral, usable in both the voluntary and compliance markets, and legally robust regardless of American jurisdiction.
Even if people are far from the renewable resource, through this agreement, they can acquire the renewable attributes of such energy no matter where they are located in the national energy grid without incurring transmission costs. Michael Eckhart, President of ACORE, stated, “This is an important step in creating a national system for REC trading, which will be essential to monetizing the environmental benefits of renewable energy and building those values into the long-term financing of the projects.”
The agreement is a result of two years of collaboration through a working group organized by ACORE, the Renewable Energy Resources Committee and Special Committee on Energy and Environmental Finance of the American Bar Association Section of Envrionment, Energy and Resources, and the Environmental Markets Association.