Renewable Energy Credits
One such product, offered by institutional liquidity provider BlockFills and fund Isla Verde Capital, aims to help not only miners but also investors to find a “green” solution for their energy usage.
The offering essentially is tradable environmental assets in the forms of carbon emissions offsets and Renewable Energy Credits (RECs). Carbon credits, assets that represent sequestered greenhouse gasses through projects such as reforestation, are as well known as they are criticized.
Renewable energy credits (RECs) represent ownership of the sustainability of electricity produced. These certificates represent 1 megawatt hour (MWh) of power produced from renewable sources such as wind, hydro and solar. They are usually separate to any power purchase agreements and are usually traded over the counter (OTC).
BlockFills and Isla Verde Capital tailor the purchase of RECs and carbon credits to miners’ needs, and later retire them, such that they can make claims about renewable energy sources.
The RECs are also geared towards bitcoin investors. “Massive asset managers” are now “looking at bitcoin, but they have these sustainability mandates that they must follow,” said BlockFills John Divine. The RECs can help them invest comfortably. This might actually raise the price of RECs, “which directly incentivizes investment in renewable energy technology,” Divine said.
View BlockFills’ Sustainability page for more information and Calculator feature.
View full CoinDesk article here.