Market Size in 2024 | Market Forecast in 2034 | CAGR (in %) | Base Year |
---|---|---|---|
USD 15.38 Billion | USD 233.81 Billion | 28.2% | 2024 |
The global renewable energy certificate market size was worth around USD 15.38 Billion in 2024 and is predicted to grow to around USD 233.81 Billion by 2034 with a compound annual growth rate (CAGR) of roughly 28.2% between 2025 and 2034. The report analyzes the global renewable energy certificate market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the renewable energy certificate industry.
The property rights to the environmental, social, and other non-power components of the production of renewable electricity are represented by a market-based instrument known as a renewable energy certificate or REC. When a renewable energy source produces and transmits one megawatt-hour (MWh) of electricity to the grid, a renewable energy certificate (REC) is granted. The development of the renewable energy certificate market is being driven by the growth of the environmentally friendly power sector, which includes rooftop solar chargers, small breeze turbines, and mini hydropower plants.
A greater number of renewable energy projects are being produced as the field of renewable energy grows. A greater number of market players will be able to acquire and exchange RECs as a result of the rise in renewable energy generation. For instance, according to the report by Invest India, as of July 2024, India's built non-fossil fuel capacity—which includes major hydro and nuclear—stands at more than 179.322 Giga Watts, or 43% of the nation's total capacity, up 396% in the past 8.5 years. India saw the largest year-over-year growth of 9.83% in the addition of renewable energy in 2023. As of July 2024, the installed solar energy capacity has grown by 24.4 times over the previous nine years and is 67.07 GW. Since 2014, the capacity of installed renewable energy sources (including big hydro) has expanded by around 128%. Therefore, the aforementioned stats are expected to drive the global renewable energy certificate market growth during the forecast period.
Uncertainty in the REC market may result from changes in governmental policies and laws. The demand for RECs and the willingness of companies and utilities to participate in renewable energy projects can be affected by changing objectives, decreasing incentives, or eliminating requirements for renewable energy. Thus, this is expected to hinder the renewable energy certificate industry growth during the forecast period.
The increasing government initiatives are expected to offer a lucrative opportunity for renewable energy certificate market growth over the forecast period. For instance, in September 2023, Gujarat unveiled a Renewable Energy Policy 2023 that aims to turn the country into a leader in renewable energy. The ambitious plan aims to create 100 GW of renewable energy capacity overall by the year 2030. This innovative project, which would use about 4,000 acres of land, is expected to draw investments totaling over 5 lakh crores. The goal of this policy is to promote flexibility and inclusion in the development of renewable energy sources. It covers both solar and wind energy projects, which may be built on government revenue land, inside authorized solar or wind parks, or even on private property.
According to several studies, compliance-related purchasers purchase the majority of the renewable energy certificates sold. Only a small number of sales have been made as a result of voluntary REC takers. The growth of the renewable energy certificate market, which is fueled by issues like ignorance and inadequate enforcement, is the biggest challenge and requires more effective management.
Report Attributes | Report Details |
---|---|
Report Name | Renewable Energy Certificate Market |
Market Size in 2024 | USD 15.38 Billion |
Market Forecast in 2034 | USD 233.81 Billion |
Growth Rate | CAGR of 28.2% |
Number of Pages | 213 |
Key Companies Covered | the Environmental Tracking Network of North America, General Services Administration, Western Area Power Administration, the U.S. Environment Protection Agency, Green-e Energy, Defense Logistics Agency Energy, Central Electricity Regulatory Commission, and others., and others. |
Segments Covered | By Type, By Energy Source, By End-user, By Distribution Channel, and By Region |
Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, The Middle East and Africa (MEA) |
Base Year | 2024 |
Historical Year | 2020 to 2023 |
Forecast Year | 2025 - 2034 |
Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
The global renewable energy certificate market is segmented based on Type, Energy Source, End-user, Distribution Channel, and region. All the segments have been analyzed based on present and future trends and the market is estimated from 2025 to 2034.
Based on Type, the global renewable energy certificate market is divided into Compliance RECs, Voluntary RECs.
On the basis of Energy Source, the global renewable energy certificate market is bifurcated into Wind, Solar, Hydro, Biomass, Geothermal.
By End-user, the global renewable energy certificate market is split into Utilities, Corporations, Government & Municipalities, Individuals.
In terms of Distribution Channel, the global renewable energy certificate market is categorized into Direct Purchase, REC Marketplaces, Utility Programs.
The Regional, this segment includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America,and the Middle East and Africa.
The Renewable Energy Certificate (REC) market from 2025 to 2034 is expected to witness diverse growth across regions, driven by varying policy frameworks, renewable energy targets, and market maturity levels. North America, particularly the U.S., will maintain a strong position due to well-established compliance markets and increasing corporate sustainability commitments. Europe will continue to lead in volume and value, supported by aggressive climate goals, cross-border trading platforms, and stringent regulations under frameworks like the EU ETS. The Asia-Pacific region is projected to see the fastest growth, fueled by expanding renewable energy installations in China, India, and Southeast Asia, along with the development of voluntary REC markets. Meanwhile, Latin America and the Middle East & Africa are gradually gaining traction, with rising investments in clean energy and early-stage regulatory support driving REC adoption in emerging economies.
The report provides a company market share analysis to give a broader overview of the key market players. In addition, the report also covers key strategic developments of the market, including acquisitions & mergers, new product launches, agreements, partnerships, collaborations & joint ventures, research & development, and regional expansion of major participants involved in the renewable energy certificate market on a global and regional basis.
The global renewable energy certificate market is dominated by players like:
The global renewable energy certificate market is segmented as follows;
By Type
By Energy Source
By End-user
By Distribution Channel
FrequentlyAsked Questions
The property rights to the environmental, social, and other non-power components of the production of renewable electricity are represented by a market-based instrument known as a renewable energy certificate or REC. When a renewable energy source produces and transmits one megawatt-hour (MWh) of electricity to the grid, a renewable energy certificate (REC) is granted.
The global renewable energy certificate market is expected to grow due to increasing adoption of clean energy, regulatory frameworks mandating renewable energy usage, and corporate sustainability goals.
According to a study, the global renewable energy certificate market size was worth around USD 15.38 Billion in 2024 and is expected to reach USD 233.81 Billion by 2034.
The global renewable energy certificate market is expected to grow at a CAGR of 28.2% during the forecast period.
Europe is expected to dominate the renewable energy certificate market over the forecast period.
Leading players in the global renewable energy certificate market include the Environmental Tracking Network of North America, General Services Administration, Western Area Power Administration, the U.S. Environment Protection Agency, Green-e Energy, Defense Logistics Agency Energy, Central Electricity Regulatory Commission, and others., among others.
The report explores crucial aspects of the renewable energy certificate market, including a detailed discussion of existing growth factors and restraints, while also examining future growth opportunities and challenges that impact the market.
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