Asia-Pacific Renewable Energy Certificate Market - 2025-2032

Market Size

Asia-Pacific renewable energy certificate market reached US$5.15 billion in 2024 and is expected to reach US$10.48 billion by 2032, growing with a CAGR of 8.4% during the forecast period 2025-2032.

Asia-Pacific is witnessing rapid growth in its renewable energy sector, driven by strong policy initiatives and increasing market participation. A key enabler of this transition is the Renewable Energy Certificate (REC) market, which helps track, verify and trade the renewable attributes of electricity generation. Governments across the region are promoting clean energy adoption, with RECs playing a crucial role in corporate sustainability commitments and carbon neutrality goals.

Market-driven mechanisms are becoming increasingly significant in renewable energy procurement. While government policies remain important, private sector demand is accelerating REC adoption, particularly through corporate power purchase agreements (PPAs) and voluntary commitments. Businesses seeking to meet sustainability targets are using RECs to certify their renewable energy consumption, reinforcing market transparency and confidence.

Market Dynamics

Green Financing Initiatives Propel REC Investments to New Heights

Green financing initiatives in the Asia-Pacific region are crucial in fostering REC adoption and supporting the shift to renewable energy. Through policy development, investment incentives and technological integration, these initiatives are strengthening the credibility of REC markets and positioning the region as a leader in sustainable energy development. With continued support from governments and financial institutions, the role of RECs in achieving carbon neutrality and expanding renewable energy adoption will continue to grow in the coming years.

Australia has been at the forefront of green financing for renewable energy. The Australian Renewable Energy Agency (ARENA) has supported numerous projects to advance renewable energy technologies and infrastructure, increasing the availability and credibility of RECs. Additionally, the Clean Energy Finance Corporation (CEFC) has played a vital role in mobilizing investments toward clean energy projects, which further supports the issuance of RECs.

Fragmented Certification Standards Create Roadblocks for REC Adoption

The Asia-Pacific renewable energy certificate (REC) market faces significant challenges due to fragmented certification standards across the region. This lack of harmonization impedes the seamless adoption and trading of RECs, thereby restraining the market's growth and efficiency.

A report by the International Renewable Energy Agency (IRENA) highlights that well-crafted standards are crucial for supporting communication, trade, legislation and market confidence in renewable energy sectors. However, poorly developed or inconsistent standards can act as barriers, hindering technology deployment and innovation. The report emphasizes that establishing appropriate global standards is challenging due to varying regional requirements and stakeholder interests.

Market Segment Analysis

The Asia-Pacific renewable energy certificate market is segmented based on type, energy source and country.

In Asia-Pacific, hydropower has historically been a dominant renewable energy source, significantly influencing the dynamics of the REC market. Hydropower has been integral to the Asia-Pacific energy landscape for decades. According to the International Energy Agency (IEA), hydropower remains the largest source of renewable power generation globally, accounting for 47% of renewable production. However, in 2023, solar photovoltaic (PV) capacity surpassed hydropower, marking a significant shift in the renewable energy hierarchy.

In Southeast Asia, hydropower has traditionally dominated the renewable energy landscape. The International Renewable Energy Agency (IRENA) reported that to achieve the aspirational target of 23% renewables in the region's primary energy mix by 2025, Southeast Asian countries will need to substantially scale up their deployment of renewables, with hydropower playing a crucial role in this transition.

Country Analysis

China is expected to be the dominant country in the Asia-Pacific RECs market in 2024. Clean energy investments in China are driving the renewable energy certificate (REC) market. For instance, according to the International Energy Agency, China remains a global leader in clean energy investments, accounting for one-third of global funding and significantly contributing to GDP growth.

With its dual carbon goals of peaking emissions by 2030 and achieving neutrality by 2060, China has rapidly expanded its renewable capacity. In 2023, it installed as much solar PV as the entire world did in 2022, with wind additions rising by 66% year-on-year. This rapid expansion of renewable energy is driving growth in its renewable energy certificate (REC) market by increasing the supply of clean energy credits.

Pricing Analysis

The pricing of renewable energy certificates (RECs) in Asia-Pacific is influenced by several key factors, including government policies, renewable energy targets, supply-demand dynamics and international market linkages. Each country in the region has distinct mechanisms for REC issuance and trading, impacting price variations. Regulatory frameworks and national renewable energy targets significantly impact REC pricing.

Countries such as Australia, China, India and Japan have established REC mechanisms to promote clean energy adoption. Government-mandated Renewable Portfolio Standards (RPS) and voluntary REC markets create different pricing structures, where compliance-based REC programs often experience higher demand and stable pricing compared to voluntary markets.

A key pricing determinant is the type of renewable energy source—solar and wind RECs tend to command higher prices than hydro-based RECs due to lower availability and higher generation costs. Solar RECs cost about US$ 2.5/MWh in 2023 and is expected to be at US$ 2.07/MWh by 2032.

Major Players

The major players in the market include Solarvest Holdings Berhad, Asiarecs Pte. Ltd., Statkraft, Tata Power (TATA Power Trading Company Limited), TÜV AUSTRIA Group, Saxon Renewables Pte. Ltd, Becour AS, REDEX Pte. Ltd, Enerpac Energy Pvt. Ltd. and Climate Bridge (Shanghai) Ltd.

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