Global Renewable Energy Certificate Market Size Likely to Grow at a CAGR of 24.8% By 2035

The market size of global renewable energy certificate will be estimated at USD 21.3 billion in 2025 and is expected to grow to between USD 26.6 billion in 2026 and about USD 195.2 billion by 2035, with a current CAGR (compound annual growth rate) of 24.8% during the period of 2026 to 2035.

Renewable Energy Certificate Market Revenue and Trends

A Renewable Energy Certificate (REC) is a market-based instrument that symbolizes the renewable energy attributes (usually one MWh) of the generation of electricity using solar, wind, hydro, or biomass specifically. It quantifies the “green value” of the renewable electricity so that the otherwise unquantified outcomes of renewable electricity generation can be “separated from the physical electricity” (delivery of electrons along power lines).

The REC tracks the ownership of attributes of renewable electricity generation regardless of where the electrons that constitute that electricity flow across the wires. One primary use of the REC is to assign the environmental and other benefits of renewable energy generation to either the owners of the generating facility or the customers served by electric utilities, regardless of the source of the electricity used to meet their energy needs.

What are the Factors That Have a Significant Contribution to the Growth of the Renewable Energy Certificate Market?

The increase in worldwide electricity consumption and the energy transition are the two main factors impacting the targeted market segment for the REC market typically taken into account by government data and forecasts. Within a decade, global electricity demand increased by 4.3% in 2024, marking one of the highest growth rates in recent decades, and is expected to rise by approximately 3.3%–3.7% annually between 2025 and 2026 (according to IEA statistics). This trend is the result of efficiency improvements along with the effects of the economies of scale, greatly decreasing prices of solar and wind power, and the use of electrified transportation (electric vehicles) and digital infrastructure (more air conditioning, more data centers).

At the same time, worldwide governments are focusing on clean energy to reach the targeted climate and global sustainability goals. The IEA points out that “the vast majority of the additional electricity demand by 2027 will be supplied by low-emission sources and renewables,” showing the ongoing change of energy systems shift. As other countries evolve their power mix away from the traditional fuels toward cleaner and sustainable sources, RECs will be needed to trace and utilize the renewable electricity. Overall, power consumption and the choices toward renewables increase the supply and the utilization for RECs; thus, their market growth is enforced by decarbonization trends and increased use of the electric grid.

Emerging markets are a key factor in the growth of the REC market because they are steadily increasing their renewable energy capacity to meet the growing demand for electricity and to address climate change. The governments of these emerging markets are coming out with new policies and mandates regarding the RE consumption and RECs (like new purchase obligations and % of mandated clean energy consumption).

Another reason for their rapid growth is that with the increased pace of growth of industries, urban areas, and large foreign direct investments, there is an increasing consumption of electricity but also a major rise in the advent of solar, wind, and other renewable projects. The international certification architectures, like the International REC Standard Foundation, are providing a framework to implement verification and cross-border trade of RECs, which makes it easier for them to be accessed by other global corporate companies. Large demand for the RECs by MNEs operating overseas also boosts the development of the REC industry. All these reasons will make the emerging regional market a pretty fast-developing trade of RECS.

Regional Insights

North America held the highest market share in 2025. The expansion of solar and wind energy is expected to drive the regional growth. Moreover, the favorable government initiatives drive the regional market.

Besides, the Asia Pacific market is expected to grow at the highest CAGR during the forecast period. The increasing participation of public and private players drive the industry growth in the region.

Report Scope

Recent Developments

• In April 2024, Google acquired over 1.5 gigawatts of renewable energy capacity in Europe, and North America in the last 12 months through new standardized agreements that sealed deals in as few as 2 months. renewable energy certificates related to these projects to utilize emission reductions in future years.

List of the prominent players in the Renewable Energy Certificate Market:

• Sterling Planet
• Ecohz
• Shell
• Statkraft
• Xpansiv
• EDF Trading Limited
• ENGIE
• Enel Green Power
• STX Group
• TerraPass
• BEF
• Targray
• Ameresco
• 3Degrees
• Constellation
• Others