RECs Part 2 – My Headache Is Now Your Headache

In Vermont’s Green Laws: The Kardashians of the Environmental Movement, we delved into Vermont’s Renewable Energy Credit (REC) practices, spotlighting how selling RECs inflates the state’s greenhouse gas (GHG) emissions while giving neighboring states, like Massachusetts, a greener glow on paper. That analysis hit a nerve, striking a chord with readers tired of bureaucratic gamesmanship masquerading as climate progress. But as we’ve dug deeper into the mechanics of RECs, a headache-inducing paradox emerges: Vermont isn’t just selling RECs; it’s also buying them.

Yes, you read that right. While Vermont generates renewable energy and sells the environmental benefits to out-of-state utilities, it simultaneously purchases RECs—including some from other states—to meet its own renewable energy standards. This “credit swap” undermines both the simplicity and the credibility of the state’s climate reporting. Worse still, this system isn’t just Vermont’s doing—it’s backed by the very institutions that claim to lead the fight against climate change.

Vermont’s Headache-Inducing REC Shell Game

To recap, the insanity begins at home. Vermont utilities generate renewable energy and sell RECs to out-of-state buyers, such as Massachusetts utilities, allowing those buyers to claim the green benefits. This inflates Vermont’s emissions on paper, as the state can no longer count the renewable energy it actually produces (Vermont Greenhouse Gas Emissions Inventory, 1990–2020).

But it doesn’t end there. Vermont then buys RECs (sometimes from other states) to meet its own renewable energy standards. This bizarre cycle—selling RECs to boost others’ stats while buying RECs to cover its own obligations—leaves Vermonters paying for a problem that’s been artificially manufactured. The state’s role as both seller and buyer in this shell game creates a headache that’s both logistical and ethical.

The Complicity of the IPCC and UN

At the global level, the Intergovernmental Panel on Climate Change (IPCC) and the United Nations (UN) provide the frameworks that enable this madness. These organizations encourage the use of market-based mechanisms like RECs, prioritizing financial incentives over real-world emissions reductions.

By endorsing RECs, the IPCC and UN perpetuate a system that:

Distorts Accountability: Emissions reductions are counted where RECs are purchased, not where renewable energy is actually consumed.
Enables Double Standards: Wealthy nations and corporations can buy their way into “green” status, while real emissions remain unchanged.

Instead of promoting transparency and genuine progress, these entities have become enablers of a global accounting trick.

Vermont’s Economically Ill-Advised Participation in the Paris Accord

Vermont’s enthusiastic participation in the Paris Climate Accord might sound admirable, but let’s be honest: the state contributes a minuscule fraction of global greenhouse gas emissions. Holding Vermont to the same aggressive standards as industrial powerhouses like China makes no economic sense.

Meanwhile, Vermonters are left footing the bill for policies that increase energy prices and strain local businesses. The question must be asked: Why should Vermont—with its already negligible emissions—be a sacrificial lamb on the altar of global climate policy?

China’s Non-Stop Coal Expansion

While Vermont plays by the rules, China is rewriting them. The world’s largest emitter of greenhouse gases, China continues to build coal plants at a staggering rate. In fact, China is responsible for more than half of the world’s coal consumption, and its new coal plant construction outpaces the rest of the world combined.

China’s emissions dwarf those of the entire United States, yet it enjoys “developing nation” status under the Paris Accord, granting it more lenient requirements. As Vermont strains to meet its goals, China marches forward with business as usual, undermining the very premise of global climate cooperation.

Support FYIVT Today – Choose Your Impact! Name Your Own Price to Help Us Keep Fighting for Truth and Transparency. Every Contribution Makes a Difference!

China’s Exit from the International REC System

Adding insult to injury, China recently exited the International Renewable Energy Certificate (I-REC) system, replacing it with its own Green Electricity Certificate (GEC) program (Green Electricity Certificate Details). While other countries still largely participate in I-REC, China’s departure signals its preference for self-regulation, allowing it to claim renewable progress without external accountability. This creates a glaring inconsistency in global climate cooperation and highlights the flaws in the international REC system.

The Economics of the REC Shell Game

So who benefits from this circus? The answer is clear: corporations, trading firms, and intermediaries that profit from the creation and sale of RECs. For example:

Companies like Element Markets, LLC specialize in managing environmental assets, reaping significant profits from REC transactions.
State-owned enterprises in China, such as the China Three Gorges Corporation, rake in billions from renewable energy projects while also benefiting from their self-created GEC system (China Renewable Projects).

Meanwhile, ordinary Vermonters and other consumers are left paying higher energy bills, subsidizing a system that rewards corporate greed and international hypocrisy.

The Path Forward: Vermont as a Leader in Climate Clarity

If Vermont truly wants to lead, it’s time to leave the REC system behind. Here’s how:

Ditch the REC System: Stop selling RECs and retain the environmental benefits of Vermont’s renewable energy generation.
Focus on Honest Reporting: Provide an unbiased accounting of Vermont’s actual greenhouse gas contributions, free from market-driven distortions.
Refuse to Play Along: Challenge the premise of unilateral adherence to the Paris Accord when major polluters like China continue to undermine global efforts.
Advocate for Reform: Push for international accountability and transparency, starting with the IPCC and UN frameworks that enable this shell game.

The Takeaway

The REC system, endorsed by global entities and exploited by nations like China, is a microcosm of everything wrong with modern climate policy. It rewards manipulation over integrity, leaving taxpayers and consumers to foot the bill. Vermont’s participation in this system does little to combat climate change, everything to undermine public trust, and waste taxpayers’ dollars.

If we’re serious about addressing climate change, we need to stop playing the game altogether. Let Vermont’s green mountains stand for more than just optics. Let them stand for transparency, honesty, and the kind of leadership that turns this circus into something worth believing in.

Dave Soulia | FYIVT

#fyivt #ClimateClarity #GreenEnergyScam #VermontPolitics

Support Us for as Little as $5 – Get In The Fight!!

Make a Big Impact with $25/month—Become a Premium Supporter!

Join the Top Tier of Supporters with $50/month—Become a SUPER Supporter!