The difference between carbon offsets & renewable energy credits
Mari Bishop, a Goby ESG Manager, explains that, though these terms are often used interchangeably, they're actually two different measures.
Hi, my name is Mari Bishop!
Today, I wanted to talk about the difference between two terms that tend to be used interchangeably: "carbon offsets" and "renewable energy credits" (or RECs).
Understanding the difference between three scopes of greenhouse gas emissions is key here:
Type One emissions are emissions from onsite direct sources, Type Two are indirect emissions that are energy-based, and Type Three are all other types of indirect emission sources.
Carbon offsets reduce, avoid, or return the equivalent of one tonne of greenhouse gas, and are generally represented through direct emissions. A REC represents one megawatt hour of energy generated from a clean, renewable source, and generally represents indirect emissions.
RECs and carbon offsets involve different environmental attributes and criteria for qualification and crediting.