# Renewable Energy Certificate

*ESG & Sustainable Finance — Finicade finance glossary*

A renewable energy certificate represents one megawatt-hour of renewable generation and can be sold separately from the electricity itself. Buying them lets a company claim renewable power without a direct connection to a wind farm. Unbundled certificates from existing plants face the additionality objection directly, which is why credible buyers now favour long-term power purchase agreements funding new capacity.

**Also known as:** REC, guarantee of origin, green certificate

**Related terms:** [Carbon Credit](https://finicade.com/glossary/carbon-credit), [Scope 1, 2 and 3 Emissions](https://finicade.com/glossary/scope-1-2-and-3-emissions), [Additionality](https://finicade.com/glossary/additionality), [Greenwashing](https://finicade.com/glossary/greenwashing), [Net Zero](https://finicade.com/glossary/net-zero)

Source: https://finicade.com/glossary/renewable-energy-certificate