Renewable Energy Certificate Market to Reach USD 64.6 Billion by 2035 at 10.8% CAGR Amid Rising Corporate Net-Zero Demand | Future Market Insights

NEWARK, Del., Feb. 24, 2026 /PRNewswire/ -- Future Market Insights reports that the global Renewable Energy Certificate Market is projected to grow from USD 23.2 billion in 2025 to USD 64.6 billion by 2035, expanding at a CAGR of 10.8% over the forecast period. The market is gaining momentum as organizations across industries increase renewable electricity claims to support decarbonization strategies, ESG reporting, and compliance with renewable energy mandates.

Renewable Energy Certificates have emerged as a practical and scalable mechanism for utilities, corporations, and institutions to demonstrate renewable electricity usage without directly investing in generation assets. As climate targets become more formalized and reporting expectations intensify, RECs are increasingly used as a flexible market-based tool to bridge procurement, compliance, and sustainability goals.

From 2020 to 2025, the market advanced from USD 13.9 billion to USD 23.2 billion, reflecting an early acceleration phase driven by stronger participation from utilities and multinational corporations. During this period, large technology companies and global enterprises increased REC purchases to align with renewable portfolio standards (RPS) and net-zero targets, contributing to higher trading volumes.

Looking ahead, the market is expected to strengthen further between 2026 and 2030, rising from USD 25.7 billion to USD 38.7 billion and capturing nearly 37% of the decade's incremental growth. By 2031 to 2035, the market is forecast to expand from USD 42.8 billion to USD 64.6 billion, accounting for the remaining 63% of absolute dollar opportunity, supported by standardized frameworks, cross-border trading capabilities, and improved certificate traceability.

Quick Stats for Renewable Energy Certificate Market

• Market Value (2025): USD 23.2 billion
• Forecast Value (2035): USD 64.6 billion
• Forecast CAGR (2025–2035): 10.8%
• Leading Capacity Segment (2025): < 5 MW (41.0% share)
• Leading Type Segment (2025): Voluntary (57.0% share)
• Leading Source Segment (2025): Solar (48.0% share)
• Key Growth Regions: North America, Asia-Pacific, Europe
• Key Players: NextEra Energy, 3Degrees, Inc., Ecohz, Statkraft, Shell Energy / EDF Trading, Ørsted

Get Access of Free Renewable Energy Certificate Report Sample: https://www.futuremarketinsights.com/reports/brochure/rep-gb-24646 

Market Overview: Why REC Adoption Is Expanding

The REC market is growing steadily as global energy consumers seek credible ways to reduce carbon footprints and support renewable generation. RECs provide a standardized certificate-based mechanism that allows organizations to match electricity consumption with renewable generation attributes, making them central to sustainability and reporting strategies.

Growth is being fueled by:

• Corporate net-zero commitments
• Renewable portfolio standards and compliance mandates
• Voluntary green energy procurement
• Expansion of REC trading platforms
• Blockchain and AI-based verification solutions
• Greater traceability and reduced risk of double counting

As renewable generation infrastructure expands across solar, wind, hydro, and bioenergy, RECs are becoming more liquid, more accessible, and more relevant across both mature and emerging energy markets.

Key Takeaways from Market Value Analysis

The renewable energy certificate market plays a meaningful role in the broader clean energy and carbon market ecosystem:

• Holds an estimated 9–11% share of the renewable power trading ecosystem
• Represents roughly 12–14% within broader carbon credits and compliance markets
• Accounts for approximately 15–17% of voluntary green energy procurement
• Captures around 10–12% within regulated compliance programs (e.g., RPS-linked systems)
• Represents about 6–7% of the corporate sustainability and ESG reporting toolset

These shares highlight the REC market's role as both a compliance instrument and a practical enabler of corporate decarbonization.

Segmental Analysis

By Capacity: < 5 MW Leads with Broad Participation

The < 5 MW segment is expected to account for 41% of market revenue in 2025, making it the leading capacity category. Growth in this segment is supported by rising deployment of small-scale renewable projects such as:

• Distributed solar installations
• Community wind farms
• Micro-hydro facilities

Lower capital requirements, streamlined permitting, and modular technology deployment have helped smaller projects generate RECs at scale while improving local energy resilience and reducing transmission losses.

By Type: Voluntary RECs Dominate Market Demand

The voluntary segment is projected to hold 57% of market revenue in 2025. This leadership reflects growing demand from corporations, institutions, and individuals choosing to purchase RECs beyond regulatory requirements as part of sustainability and brand commitments.

Key support factors include:

• Flexible procurement options
• Alignment with ESG and CSR objectives
• Digital marketplaces improving traceability and buyer confidence
• Growth in renewable branding and green tariff programs

By Source: Solar Maintains Strongest Position

The solar source segment is anticipated to capture 48% of market revenue in 2025, making it the leading source category. Solar's dominance stems from:

• Rapid global solar PV installation growth
• Declining module costs
• High scalability from rooftop to utility-scale projects
• Faster development timelines
• Strong policy incentives

Solar's visibility as a widely recognized clean energy source also strengthens its appeal among REC buyers seeking credible and understandable sustainability claims.

Drivers, Restraints, and Key Trends

Major Growth Driver: Expanding Corporate Demand for Green Energy

Corporate buyers are now among the strongest contributors to REC market expansion. Multinational firms in technology, retail, and manufacturing increasingly use RECs to demonstrate progress toward emission reduction targets and to satisfy investor and stakeholder expectations. Long-term REC agreements are also being used to hedge against policy uncertainty while securing renewable claims.

Policy Frameworks Continue to Shape Market Development

Renewable portfolio standards, utility mandates, and compliance frameworks in regions such as North America and Europe continue to provide structured demand. Emerging markets are also introducing new frameworks, helping extend REC adoption beyond established geographies.

Digital registries and standardized tracking systems are improving accountability and strengthening trust in compliance-linked REC usage.

Voluntary Markets Open New Growth Pathways

Voluntary REC purchasing is expanding among universities, institutions, smaller organizations, and non-regulated buyers. Green tariff bundles and utility offerings are making RECs more accessible, particularly in Asia-Pacific and Latin America, where interest is rising even as policy frameworks continue to evolve.

Market Challenge: Pricing Volatility and Transparency Gaps

Despite strong momentum, REC markets still face challenges related to:

• Regional pricing inconsistencies
• Policy-driven volatility
• Double counting concerns
• Limited access for smaller buyers
• Higher transaction costs in fragmented systems

Ongoing improvements in digital trading, traceability, and blockchain-based registries are helping address these concerns and support long-term market credibility.

Country-Level Growth Outlook (2025–2035 CAGR)

• China: 14.6%
• India: 13.5%
• Germany: 12.4%
• France: 11.3%
• UK: 10.3%
• USA: 9.2%
• Brazil: 8.1%

The overall global REC market is projected to grow at 10.8% CAGR, with Asia emerging as the strongest growth hub, Europe continuing to support structured compliance-driven adoption, and North America maintaining stable expansion anchored by corporate and utility participation.

Regional Highlights

China: Strongest Global Growth Momentum

China's REC market is expected to accelerate from a 12.9% CAGR (2020–2024) to 14.6% (2025–2035). Growth is supported by:

• Nationwide renewable quotas
• Digitalized REC exchanges
• Corporate participation in voluntary markets
• Large-scale solar and wind deployment

India: Dual Strength in Compliance and Voluntary Demand

India's REC market is projected to rise from 11.7% CAGR (2020–2024) to 13.5% (2025–2035). Key drivers include:

• Renewable obligations for utilities
• Expansion of solar and wind parks
• ESG-driven corporate REC demand
• Streamlined exchange mechanisms

France: Gradual but Steady Improvement

France is expected to grow from 9.8% CAGR (2020–2024) to 11.3% (2025–2035). REC demand is supported by:

• EU compliance targets
• Utility-backed green tariffs
• Increasing corporate participation
• Improved registry transparency

United Kingdom: Green Tariffs and Corporate Demand Support Growth

The UK REC market is forecast to improve from 9.1% CAGR (2020–2024) to 10.3% (2025–2035), driven by:

• Wider use of green tariffs
• Voluntary procurement by businesses
• ESG reporting integration
• Reduced reliance on direct subsidy structures

United States: Stable and Broadly Corporate-Led Expansion

The USA REC market is projected to grow from 8.5% CAGR (2020–2024) to 9.2% (2025–2035). Growth is supported by:

• State-level renewable portfolio standards
• Utility green tariff offerings
• Corporate voluntary procurement
• Improving digital registry systems

Competitive Landscape

The REC market is shaped by a combination of major renewable generators, integrated energy traders, and specialized sustainability service providers.

• NextEra Energy remains a leading force, supported by large-scale wind and solar assets in North America.
• 3Degrees, Inc. differentiates itself through REC procurement, advisory services, and corporate sustainability partnerships.
• Ecohz is a key player in Europe, emphasizing traceable and verifiable green certificates for ESG-aligned buyers.
• Statkraft strengthens its position with renewable-backed certificate offerings across European markets.
• Shell Energy / EDF Trading leverage integrated trading capabilities to supply utilities and corporates at scale.
• Ørsted, along with other large renewable developers, benefits from significant renewable generation portfolios tied to REC issuance.

Competition is increasingly centered on:

• Scaling renewable generation capacity
• Expanding digital trading and verification platforms
• Enhancing certificate traceability
• Securing long-term corporate contracts
• Supporting cross-border REC trading

Request Access of Full Report:  https://www.futuremarketinsights.com/reports/renewable-energy-certificate-market 

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