ISDA published a new U.S. Renewable Energy Certificate ("REC") Annex intended to allow firms to transact in RECs under the ISDA Master Agreement.
ISDA explained that "RECs represent the environmental attributes of renewable energy generation," and that "buyers of RECs have the rights to the characteristics of renewable energy, allowing firms that may not be able to connect directly to a renewable electricity supply to support clean energy and meet their ESG goals." ISDA said that the Annex will enable more efficient trading in RECs based on standardized product terms in environmental, social and governance areas.
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