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RECs vs Carbon Offsets: Which Does Your Business Need?

7 Jul 2026 in Corporate planting · Updated 8 Oct 2026

RECs vs Carbon Offsets: Which Does Your Business Need?

RECs (Renewable Energy Certificates) address your electricity: one REC proves 1 MWh of renewable power was generated. Carbon offsets address your emissions: one credit compensates 1 tonne of CO₂e. They answer different questions — most businesses with both grid electricity and residual emissions end up needing both.

The difference at a glance

  • Unit. REC = 1 MWh of renewable electricity. Offset = 1 tonne CO₂e avoided or removed.
  • What it claims. RECs let you report purchased electricity as renewable (Scope 2). Offsets compensate emissions you could not cut, typically residual or value-chain tonnes.
  • Standards. RECs sit in energy-attribute registries; offsets are certified by Verra, Gold Standard and similar programmes.
  • Where they land in your accounts. RECs change a number inside your inventory. Offsets sit outside it, as compensation for what remains.
  • Neither replaces reduction. Both complement — not substitute — cutting consumption and emissions.

What a REC actually is

When a renewable generator puts a megawatt-hour onto the grid, two things are produced: the electrons, which are indistinguishable from any others once they are on the wire, and a certificate recording that the megawatt-hour was renewable. That certificate is the REC, and it is what gets traded, tracked and eventually cancelled on your behalf.

The naming varies by market — RECs in North America, Guarantees of Origin in Europe, I-RECs across much of the rest of the world — but the logic is identical: the environmental attribute is unbundled from the power itself so it can be sold to whoever wants to claim it. That is also the mechanism's main criticism, which we come back to below.

Why Scope 2 is the reason RECs exist

Under the GHG Protocol, companies report Scope 2 emissions two ways:

  • Location-based — your consumption multiplied by the average emissions intensity of the grid you sit on. RECs do not change this number.
  • Market-based — your consumption adjusted for the energy attributes you have actually contracted for. This is the number RECs move.

This is why a company can truthfully report “100% renewable electricity” while physically drawing the same mixed grid power as its neighbour. It is not dishonest, but it is a market-based accounting claim, and it should be described as one.

Where the criticism lands — and how to answer it

The fair critique of unbundled RECs is additionality: buying a cheap certificate from an already-profitable wind farm may not cause any new renewable capacity to be built. The stronger positions, in rough order of credibility:

  1. On-site generation — your own solar or wind, with the attributes retained.
  2. Power purchase agreements — long-term contracts that underwrite new build, with the RECs bundled in.
  3. Bundled or same-market RECs — certificates from the grid you actually draw from, ideally recent vintages.
  4. Unbundled RECs — useful, inexpensive, and the weakest claim of the four. Say so plainly rather than letting a reader assume more.

The same principle governs offsets: what matters is whether your money changed an outcome, and whether you can show it.

Which does your business need?

If your sustainability gap is electricity (Scope 2), RECs are the matching instrument. If the gap is residual emissions across operations and the value chain, certified offsets are. In practice a credible plan stacks them in order: cut consumption first, contract renewable electricity for what you still use, then retire certified offsets against the remainder. Most of what is left after that sits in Scope 3, where neither instrument substitutes for supplier engagement.

One practical warning: never count the same megawatt-hour twice. If a REC has already zeroed the emissions of your electricity in the market-based method, buying offsets for those same tonnes double-counts them. Offsets belong against the emissions the REC did not address.

Where Evertreen fits

Evertreen supplies both, as an intermediary: RECs sourced from third-party renewable projects, and Verra or Gold Standard offsets retired on your behalf with documentation — plus tree planting in monitored projects for visible, long-term removal. One platform, documented claims, evidence you can hand to an auditor.

Size the problem first with the CO₂ calculator, or work through the full inventory in how to calculate your business carbon footprint.

Frequently asked questions

Do RECs reduce my carbon footprint? They change how your electricity is accounted for under the market-based Scope 2 method. They do not compensate non-electricity emissions — offsets do that.

Can I use RECs and offsets together? Yes, and it is standard practice: RECs for electricity, certified offsets for residual emissions. Just make sure the two are not claimed against the same tonnes.

What is the difference between a REC and a Guarantee of Origin? Mostly geography. RECs are the North American instrument, Guarantees of Origin the European one, and I-RECs cover many other markets. All certify one megawatt-hour of renewable generation.

Are unbundled RECs credible? They are legitimate and widely used, but they are the weakest form of renewable claim because they may not drive new capacity. On-site generation and power purchase agreements are stronger, and worth stating precisely in your reporting.

Does buying RECs make my company carbon neutral? No. RECs only address purchased electricity. Neutrality claims involve your whole inventory, and consumer-facing product neutrality claims based on offsetting face new EU restrictions from September 2026.

Which should I buy first? Neither. Reduce consumption first — it is cheaper than both, and it is the only step that removes the emissions rather than accounting for them.

Does Evertreen sell both? Yes — RECs as an intermediary from third-party projects, and Verra or Gold Standard offsets, alongside traceable tree planting.

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Calculate your CO2 footprint, reduce what you can, and offset the rest transparently."}}, {"@type": "Question", "name": "Is planting trees enough to make my business sustainable?", "acceptedAnswer": {"@type": "Answer", "text": "No. Tree planting offsets emissions you cannot yet avoid but should follow real reduction. Used honestly alongside cuts to energy and travel it is a credible part of the plan."}}, {"@type": "Question", "name": "Do small businesses need an ESG report?", "acceptedAnswer": {"@type": "Answer", "text": "Rarely at SME scale. A one-page summary of your footprint, targets, offsetting evidence and key policies covers most of what customers ask for."}}, {"@type": "Question", "name": "Is ESG legally required for small companies?", "acceptedAnswer": {"@type": "Answer", "text": "Usually not directly. Requirements land on large companies and reach smaller suppliers through procurement questionnaires and contract terms."}}, {"@type": "Question", "name": "How much does starting with ESG cost?", "acceptedAnswer": {"@type": "Answer", "text": "Measurement can be free with a calculator and a few hours of time. The meaningful spend is in the reductions themselves and optionally in offsetting the residual."}}, {"@type": "Question", "name": "What is the most common ESG mistake for small businesses?", "acceptedAnswer": {"@type": "Answer", "text": "Claiming more than you can evidence. A modest documented position is worth far more in a tender than an ambitious one that collapses under a follow-up question."}} ] }

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Eco-Friendly Employee Gifts That Actually Mean Something

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For audited tonnes, use certified credits alongside the gifting programme. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ {"@type": "Question", "name": "How much does it cost to gift a tree to employees?", "acceptedAnswer": {"@type": "Answer", "text": "Trees start from 1.5 pounds each and the price per tree stays the same whether you gift a handful or several thousand, with no separate per-recipient fees."}}, {"@type": "Question", "name": "What does each employee actually receive?", "acceptedAnswer": {"@type": "Answer", "text": "A personalised certificate in their name linked to the project where their tree is planted, with its location, photos and updates, rather than a generic voucher."}}, {"@type": "Question", "name": "Can we gift trees to a large team at once?", "acceptedAnswer": {"@type": "Answer", "text": "Yes. 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There is no shipping, customs or address problem, so everyone receives the same gift on the same day."}}, {"@type": "Question", "name": "Can gifted trees count towards our carbon reporting?", "acceptedAnswer": {"@type": "Answer", "text": "Treat them as a contribution rather than an offset claim. For audited tonnes, use certified credits alongside the gifting programme."}} ] }

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What Is the Carbon Footprint of a Website?

A typical web page emits roughly 0.5–5 g CO₂ per view, so a website's carbon footprint is simply that per-view figure multiplied by your traffic — a site serving a million page views a year lands at ≈ 0.5–5 tonnes of CO₂. The exact number swings with page weight, how and where the site is hosted, and the devices your visitors use, so treat any single result as an order-of-magnitude estimate rather than a precise measurement. Where a website's emissions come from Data centres. The servers that store and deliver your pages draw electricity around the clock, plus extra energy to keep the hardware cool. Network transfer. Every image, script, font and video crosses routers, cables and mobile networks that all burn power in transit. User devices. Phones, tablets and laptops spend their own energy downloading, rendering and displaying each page you send them. Traffic volume. A tiny per-view figure multiplied by millions of visits is what quietly turns grams into tonnes over a year. How to estimate your site's footprint To size your own footprint, multiply a realistic per-view figure by your annual page views — but first work out where your pages sit in that 0.5–5 g band. The biggest driver is page weight: heavy hero images, autoplaying video and uncached assets can push a single page well past 5 g, while a lean, well-cached page stays under 0.5 g. Hosting matters almost as much, since a server on a renewable-powered grid emits far less than a "dirty-grid" data centre running on fossil fuels. Rather than guess, drop your numbers into a free tool such as Evertreen's CO₂ calculator to get a defensible annual estimate before you change anything. A worked example Take a mid-sized business site with 500,000 page views a year: At a lean 0.5 g per view, that is about 0.25 tonnes a year — roughly a short-haul return flight. At a heavy 4 g per view, it is about 2 tonnes — roughly a long-haul return flight per year, every year. 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A note on "green hosting" claims Most green-hosting claims rest on renewable energy certificates rather than a physically different power supply — the provider buys certificates matching its consumption. That is a legitimate market-based accounting method, and it is genuinely better than nothing, but it is worth understanding for what it is. Stronger signals are on-site generation, long-term power purchase agreements and published carbon intensity per region. The mechanism is explained in RECs vs carbon offsets. Either way, reducing what you send beats accounting for what you sent. How to cut a website's carbon footprint Once you know the rough figure, the fastest wins come from shrinking what you send. Compress and lazy-load images, strip out unused scripts and fonts, minify your code and cache aggressively so returning visitors re-download as little as possible. Choosing a host that runs on renewable energy cuts the data-centre share at a stroke, and a good CDN shortens the distance your data has to travel. In practice these steps can halve a page's footprint while also making it load faster, which tends to lift conversions and search rankings at the same time — a rare case where the greener option is also the more profitable one. Offset the remainder with traceable trees You will rarely reach zero on efficiency alone, so the honest final step is to offset the emissions you cannot yet design out. Evertreen lets you fund real reforestation with traceable trees from £1.5 each, and you can plant trees as a one-off or on a recurring basis, with each project's location shown on a map so you can show visitors where their impact lands. For businesses, our API and Shopify integration build offsetting straight into a site or checkout, so you can neutralise emissions automatically per order or per visit rather than by hand. When you need audit-ready proof for ESG or customer reporting, you can also request certified Verra & Gold Standard carbon credits on top. Keep the claim proportionate: a website's footprint is usually a small line in a company's total, so treat it as a well-executed detail rather than the centrepiece of your climate story. The full inventory is in how to calculate your business carbon footprint. Frequently asked questions How much CO₂ does a website produce? A single page view is usually 0.5–5 g CO₂, so a site serving a million page views a year sits at roughly 0.5–5 tonnes of CO₂. Page weight and the cleanliness of your hosting decide where in that range you land. How can I reduce my website's carbon footprint? Shrink page weight, compress and lazy-load images, cut unused code, cache assets and move to a host powered by renewable energy. These steps lower emissions and load times together, and you can offset whatever remains. Can planting trees offset a website's emissions? Yes. After you have estimated your annual footprint and reduced what you can, funding traceable trees or certified carbon credits lets you balance the CO₂ you cannot yet remove. What is the single biggest change I can make? Remove or replace autoplaying video, then right-size images. Together they account for most of the weight on a typical marketing site. Does dark mode reduce emissions? Marginally, and only on OLED screens. It is a nice touch, not a strategy — page weight matters far more. Is a static site greener than a dynamic one? Usually, because it caches better and does less work per request. The difference is smaller than the difference between a light page and a heavy one. Should we advertise our site as carbon neutral? Be careful. 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It is a nice touch rather than a strategy, since page weight matters far more."}}, {"@type": "Question", "name": "Is a static website greener than a dynamic one?", "acceptedAnswer": {"@type": "Answer", "text": "Usually, because it caches better and does less work per request, though the difference is smaller than that between a light page and a heavy one."}}, {"@type": "Question", "name": "Should we advertise our website as carbon neutral?", "acceptedAnswer": {"@type": "Answer", "text": "Report what you measured and what you funded as separate numbers. EU rules restrict offset-based neutrality claims made to consumers from September 2026."}} ] }

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