PJM Renewable Energy Credits (RECs) deliveries broke records in July, as the total notional value of delivered RECs reached $377 million. RECs – a type of Energy Attribute Credit – represent the positive externality associated with producing green electricity. Many U.S. states have Renewable Portfolio Standards (RPS), which require Load Serving Entities to procure and retire RECs.
The total notional value of the PJM delivery was a 22% increase from the previous record of $308 million set in July 2022. The record month was driven predominantly by PJM Tri-Qualified Class 1 RECs (PJM Tris, for short), which are eligible for compliance in the RPS markets of Pennsylvania, New Jersey, and Maryland. The PJM Tri market saw 7,544,800 RECs delivered this July, up from 7,052,900 July 2022. This, paired with a 42% increase in price, led to the record $260 million in notional value of the delivery in PJM Tris alone.
ICE is the global hub of Energy Attribute Credit trading. In the past 12 months, 91,919,000 PJM RECs have traded on ICE, representing 91% of the market share in PJM futures.
Global Carbon Index Futures
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Nature-Based Carbon Credits
North America
Europe
Nature-Based Carbon Credits
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