An environmental commodity is a tradable instrument that represents a verified environmental attribute of an underlying activity, such as renewable energy generation, greenhouse gas emission reduction, or biodiversity protection. Energy attribute certificates (EACs) are the largest category of environmental commodities by traded volume.
The main categories of environmental commodities are:
- Energy attribute certificates (such as GoOs, RECs, I-RECs, REGOs) which certify renewable electricity generation - Carbon credits which certify GHG emission reductions or removals (under standards such as Verra and Gold Standard) - Biodiversity credits which certify ecosystem outcomes - Various national instruments such as J-Credits and Non-Fossil Certificates in Japan
Each operates in its own market with its own standards.
There is no single governance body. Each category and instrument operates under its own framework: AIB for European GoOs, Ofgem for UK REGOs, regional tracking systems for US RECs, the I-TRACK Foundation for I-RECs, Verra and Gold Standard for major carbon credit standards, and various national bodies for country-specific schemes. International frameworks such as the GHG Protocol overlay rules for how environmental commodities can be used to back specific corporate claims.
Explore other terms like
Environmental commodity
