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ISDA Publishes US Renewable Energy Certificate Annex

ISDA Publishes US Renewable Energy Certificate Annex Date 06/05/2021 ISDA has published a new US Renewable Energy Certificate (REC) Annex, reflecting increased interest in trading products that help companies meet renewable energy and emissions-reduction targets as part of their environmental, social and governance (ESG) strategy. The ISDA US REC Annex allows firms to buy and sell US RECs based on standardized product definitions and terms under the umbrella of the ISDA Master Agreement, enabling more efficient trading of these instruments. RECs represent the environmental attributes of renewable energy generation, and are issued when one megawatt hour of electricity is generated by a renewable energy source. Buyers of RECs have the rights to the characteristics of renewable energy, allowing firms that may not be able to connect directly to a renewable electricity supply to support clean energy and meet their ESG goals.

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