Microsoft accused of concealing true carbon emissions. (Photo: iStock)
The demand for renewable energy is being driven up by artificial intelligence (AI), with companies like Microsoft and Meta committing to 100% renewable energy. However, the RE100 goal can be achieved through Renewable Energy Certificates (RECs) with unbundled certificates, meaning that companies can claim to use renewable energy by purchasing certificates, even if they are not actually using electricity generated by renewable sources.
What are unbundled renewable energy certificates?
Renewable Energy Certificates (RECs) are like the identity cards for green electricity and come in two forms: "bundled" and "unbundled." In bundled RECs, the certificate and the green electricity are delivered together. Users cannot resell the certificate after claiming the environmental benefits. In unbundled RECs, the certificate and the green electricity are traded separately, allowing users to obtain only the environmental benefits without actually using green electricity. The tech industry is the largest buyer of unbundled RECs.
