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I-REC Authorizes Issuance in Japan

Since the 1990s, the Japanese government has conducted power market reforms several times. The purpose of that is to suppress the rising price of electricity, increase the share of renewable energy use, and provide end-users with a variety of options for purchasing electricity. In addition, the Japanese government encourages the development of renewable energy by implementing the Renewable Portfolio Standard (RPS) and Feed-in Tariff (FiT), which mandatorily regulate a certain proportion of renewable energy generation in the total power generation. As of the first six months of 2020, the electricity generated from renewable energy accounts for 23.1 percent of total power generation, an increase of 18.6% compared with last year.

In February, the International REC Standard authorized the issuance of I-RECs in Japan by considering the growing number of demands on renewable energy procurement. This happened due to the years of support from stakeholders, Japanese corporations and organizations, regulatory authorities, and national market participants. f With the issuance of I-RECs in Japan, the International REC Standard is expected to assist Japan in developing a clearly defined and properly regulated Energy Attribute Certificate (EAC) market. I-REC Standard will coordinate and assist the Japanese market in accordance with the national issuer, Local Good is expected to stimulate Japanese renewable energy production and have bigger progress. Finally, the first I-RECs will be issued in Japan at the end of quarter two of this year.

Currently, there are four EACs in Japan: Green Energy Certificate, J-Credit, FiT Non-Fossil Certificate, and I-REC. Generally, there are multiple kinds of EACs in the market and there exists no competition between each system. Each system shall be mutually supportive and encourage corporations to achieve their sustainable goal.



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