International renewable energy certificates (I-RECs) issued in Mexico have seen a significant increase in demand this year, as foreign corporations attempt to decrease their carbon footprints and policy uncertainty drives generators to seek additional revenue sources, reported Argus.
The I-REC Standard Foundation’s data shows that around 3.79TWh of I-RECs were issued in Mexico from 1 January to 31 May, a 64% increase over the previous year and the most since 2019.
The majority of the demand comes from foreign companies who have activities in Mexico, such as automobile makers. “It has to do with how much of the US supply chain originates in Mexico, if a huge corporation makes its entire supply chain meet baseline Green-e requirements, this ripples into the I-REC market,” reported Argus, citing a market participant.
