ISDA has published a new US Renewable Energy Certificate (REC) Annex, reflecting increased interest in trading products that help companies meet renewable energy and emissions-reduction targets as part of their environmental, social and governance (ESG) strategy.
The ISDA US REC Annex allows firms to buy and sell US RECs based on standardized product definitions and terms under the umbrella of the ISDA Master Agreement, enabling more efficient trading of these instruments.
RECs represent the environmental attributes of renewable energy generation, and are issued when one megawatt hour of electricity is generated by a renewable energy source. 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.
“The financial sector will play a crucial role in the shift to a greener economy by mobilizing capital to invest in sustainability projects and infrastructure. RECs help achieve this by enabling organizations to support renewable electricity wherever they are based, even if local energy suppliers do not offer it directly. By publishing the ISDA US REC Annex, firms will be able to trade these certificates based on standardized terms, making the process simpler, more efficient and more cost-effective,” said Katherine Tew Darras, General Counsel, ISDA.
The ISDA US REC Annex is the latest in a suite of documents published by ISDA designed to support trading of emissions and certain types of environmental derivatives, including templates for US and EU emissions and temperature-related weather transactions. ISDA will continue to work with members to identify other ESG-related areas where standard terms, documents and definitions are necessary.
Law firm Jones Day worked with ISDA to draft the annex.
A short video on the ISDA US REC Annex is available here.
For Press Queries, Please Contact:
Nick Sawyer, ISDA London, +44 20 3808 9740, nsawyer@isda.org
Lauren Dobbs, ISDA New York, +1 212 901 6019, ldobbs@isda.org
Joel Clark, ISDA London, +44 20 3808 9760, jclark@isda.org
Christopher Faimali, ISDA London, +44 20 3808 9736, cfaimali@isda.org
Nikki Lu, ISDA Hong Kong, +852 2200 5901, nlu@isda.org
Documents (1) for ISDA Publishes US Renewable Energy Certificate Annex
Latest
FRTB Impact on Correlation Trading
The capitalization of the correlation trading portfolio (CTP) under the Fundamental Review of the Trading Book will have an adverse economic impact for users of these instruments. In particular, there is a lack of clarity and consistency in the application...
ISDA In Review – September 2025
A compendium of links to new documents, research papers, press releases and comment letters published by ISDA in September 2025.
A Path to Greater CFTC-SEC Alignment
Earlier this week, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) held a roundtable on regulatory harmonization – an initiative we wholeheartedly support. The US regulatory framework has evolved over time to facilitate financial markets...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.