# Certificate

### What **are Renewable Energy Certificates?**

Renewable Energy **Certificates** (RECs) are tradable, non-tangible energy certificates that represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource or power plant.

### Why **do we need RECs?**

Once an electron has been added to the electric grid, there is no way to know from where it came. Renewable Energy Certificates represent the verified amount of clean electricity that has been added in a specific period; therefore RECs are the only way to prove your electricity green.

### **What’s the** difference **between** **RECs and Carbon Offsets?**

RECs prove that a certain amount of electricity consumed was green, and carbon credits represent a project, somewhere in the world, whose activities reduced emissions or enhanced greenhouse gas (GHG) removal from the atmosphere. RECs are special because they incentivize the adoption of renewable energy while carbon offsets redirect the sustainability effort to external projects.

### Green NFTs

Within the context of the ZeroLabs Tokenization Module, RECs are special kind of Non-Fungible-Token that represent:

* *n* Wh of clean energy, *n >= 1*
* produced by a specific facility
* in a specific time frame


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