What criticisms have been levelled at RECs?
As with many other market instruments to reduce carbon emissions, RECs have been subject to some criticism, and companies should use RECs proportionally as part of a wider net zero strategy that focuses on emissions reductions.
The purchase of RECs to match the electricity consumption associated with digital asset activity does not change the fact that electricity has already been consumed – and this electricity may not have been renewable. This is why Zumo is active in several working groups and has contributed to key guidance for the digital assets sector – driving the verified use of renewables at source is the most preferable option environmentally.
However, the voluntary RECs market remains the only way for companies to make an active decision to verifiably procure 100% renewable electricity.