As global policies to reduce carbon emissions gain momentum, renewable energy certificates have become an essential tool for achieving these goals. In particular, the Carbon Border Adjustment Mechanism (CBAM)introduced by the European Union is transforming renewable energy use from a choice into a necessityfor exporters. Initially, CBAM emerges as a mechanism aimed at imposing additional carbon costs on exports to the EU in carbon-intensive sectors such as cement, iron and steel, aluminum, fertilizer, electricity, and hydrogen.
With this regulation, which entered its transitional phase in 2023, manufacturers exporting goods to the EU are required to periodically report the amount of energy used and the carbon emission values associated with their production.
In other words, for export-oriented companies, transparently declaring emissions stemming from electricity consumption is now of critical importance.
Turkey has also taken significant steps to align with this transformation. The ratification of the Paris Agreement and the Green Deal Action Planpublished by the Ministry of Trade emphasize the vital importance of mechanisms that incentivize carbon reduction and the use of green energy.
In light of these developments, solutions such as I-REC have become a necessity for companies seeking to both comply with legal obligations and remain competitive in international markets.
Why is the I-REC Certificate Necessary?
I-REC certificates are one of the most effective ways to strengthen your company’s position against regulations like CBAM. Through this certification, you can document that the electricity you consume is sourced from renewable energy in international markets, thereby reducing your carbon footprint.
"For instance, when you obtain I-RECs for the electricity used in production, the emission values you are required to declare under CBAM will decrease significantly. This helps you avoid potential carbon taxes and prevents additional costs from impacting your products. Furthermore, by proving your environmental commitment to your international customers, you gain a distinct market advantage .
This is exactly where Apollo Finwise I-REC solutioncomes into play, enabling you to regularly measure and manage carbon emissions resulting from your energy consumption. Apollo Ecowise, is specifically designed for your business to track direct and indirect emissions, particularly within the scope of CBAM, without any additional infrastructure costs.
In other words, if you operate in sectors subject to CBAM, you can monitor your current status in real-time with Apollo Ecowise and document the improvements you make using mechanisms like I-REC. Ultimately, I-REC certificates are an indispensable tool for your company to both comply with today’s regulations and remain resilient against future carbon constraints.
