Global Renewable Energy Certificate Market Size, Share, Growth Analysis Report - Forecast 2034

Global Renewable Energy Certificate Market: Industry Perspective

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.

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Global Renewable Energy Certificate Market: Overview

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.

Global Renewable Energy Certificate Market: Growth Drivers

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.

Renewable Energy Certificate Market: Restraints

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.

Renewable Energy Certificate Market: Opportunities

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.

Renewable Energy Certificate Market: Challenges

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.

Key Insights

• As per the analysis shared by our research analyst, the global renewable energy certificate market is estimated to grow annually at a CAGR of around 28.2% over the forecast period (2025-2034).
• Regarding revenue, the global renewable energy certificate market size was valued at around USD 15.38 Billion in 2024 and is projected to reach USD 233.81 Billion by 2034.
• The renewable energy certificate market is projected to grow at a significant rate due to increasing adoption of clean energy, regulatory frameworks mandating renewable energy usage, and corporate sustainability goals.
• Based on Type, the Compliance RECs segment is expected to lead the global market.
• On the basis of Energy Source, the Wind segment is growing at a high rate and will continue to dominate the global market.
• Based on the End-user, the Utilities segment is projected to swipe the largest market share.
• By Distribution Channel, the Direct Purchase segment is expected to dominate the global market.
• Based on region, Europe is predicted to dominate the global market during the forecast period.

Global Renewable Energy Certificate Market: Report Scope

Global Renewable Energy Certificate Market: Segmentation Analysis

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.

Global Renewable Energy Certificate Market: Regional Analysis

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.

Global Renewable Energy Certificate Market: Competitive Analysis

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 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
• Others.

Global Renewable Energy Certificate Market: Segmentation Analysis

The global renewable energy certificate market is segmented as follows;

By Type

• Compliance RECs
• Voluntary RECs

By Energy Source

• Wind
• Solar
• Hydro
• Biomass
• Geothermal

By End-user

• Utilities
• Corporations
• Government & Municipalities
• Individuals

By Distribution Channel

• Direct Purchase
• REC Marketplaces
• Utility Programs

Global Renewable Energy Certificate Market: Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America