If your company uses renewable energy certificates to meet Science-Based Targets, an upcoming deadline could affect how you buy them and what you pay. Under the new Science Based Targets initiative (SBTi) Corporate Net Zero Standard 2.0, RECs will need to come from generation sources located in the same geographic region as the facilities using the electricity.
A renewable energy certificate, or REC, represents the renewable electricity attributes of one megawatt-hour of generation. Companies purchase RECs to support renewable electricity use and associated emissions claims under the reporting standards they follow.
Companies that plan to keep using RECs to meet SBTi targets should review their purchasing plans before the January 31, 2027 deadline. Contracts executed by that date can retain eligibility for national RECs under existing rules, including multiyear purchases.
Under the existing rules, RECs sourced across the US and Canada can be applied to electricity use within that broader region. Starting in February 2027, new contracts will need to source RECs from the same deliverability region as the company’s load. Those regional boundaries haven’t been finalized, but all three proposed options include significant divisions across the U.S.
Figures 1, 2, and 3 show the three proposed deliverability regions from the Greenhouse Gas Protocol, which SBTi refers to. The Greenhouse Gas Protocol is undergoing its own revision, expected to release in 2028. Companies looking to purchase RECs for SBTi between February 2027 and the finalization of the GHGP’s deliveryability regions will face an uncertain market.
National REC prices can be substantially lower than prices in some regional markets. That difference matters for companies with facilities in New York, PJM, New England, California, and other markets where local RECs are often 10X to 15X higher than national REC prices.
Figure 4: National Green-e REC prices by vintage year, as of November 2026, 5
As shown in Figure 4, November 2026 pricing showed national Green-e RECs at $1.85 per MWh for 2026 vintage certificates, with higher prices for later vintages, though larger purchases may receive lower pricing. Some regional markets were priced as high as $20 to $40 per REC.
Companies with load in Texas need not worry about regional REC sourcing sinceTexas RECs remain inexpensive and plentiful. A company with facilities in several markets may need a different approach for each part of its portfolio.
Before buying, confirm that your company expects to retain its commitment to its Science Based Targets under the Version 2 standard. For companies committed to SBTi, 5 recommends evaluating three to five years of REC purchases before the January 31 deadline. The right term depends on how many RECs your company expects to need as other decarbonization plans progress.
If your company expects to need RECs over the next several years to meet your Science Based Targets, 5 can help compare a multiyear purchase under the existing rules with purchases under the new regional requirements.