Logistics and freight already account for a significant share of global CO₂ emissions – freight is estimated to represent around 40% of transport-related CO₂, and demand is still rising. At the same time, more shippers are asking their logistics partners to show clear progress on emissions from both fuel and electricity.
Emissions from electricity is often easiest to tackle. While decarbonising trucks and ships can be technically and commercially complex, switching the “electricity side” to renewables is usually a more immediate opportunity.
For operators running warehouses, cross-docks, offices and cold-chain facilities, International Renewable Energy Certificates (I-RECs) offer a simple way to reduce Scope 2 emissions from electricity and respond to these expectations – even in markets where you can’t directly buy renewable power.
This article looks at how to use and buy I-RECs for logistics companies and freight forwarders.
A Growing Push for Renewable Electricity in Logistics
Logistics is often one of the largest categories in a shipper’s Scope 3 inventory. As more than 5,000+ companies worldwide now disclose their GHG emissions through CDP and over 4,000 companies have committed to SBTi, logistics-related emissions are getting much more attention in supplier questionnaires and scoring.
A few trends are driving logistics operators toward renewable electricity:
Global climate targets from your customers
Many exporters, manufacturers and retailers now have science-based or net-zero targets that explicitly cover logistics. They expect forwarders, 3PLs and carriers to show progress on both fuel and site electricity, not just one or the other. SBTi’s new Corporate Net Zero Standard 2.0 will require separate targets and reporting against Scope 1, 2 and 3 emissions.
Customer and brand requirements in RFPs
Requests for Proposals increasingly include questions like:
- Are your key warehouses and hubs powered with renewable electricity?
- Can you offer “green hub” or low-carbon options for specific lanes?
More detailed reporting standards
CDP, ESG reports and internal dashboards now highlight market-based Scope 2 emissions separately. Covering electricity at logistics sites with I-RECs directly lowers those figures in line with the Greenhouse Gas Protocols, RE100, SBTi, the Net-Zero Standard, CDP and others.
Time to Get On Board
In many emerging markets, even large logistics operators can’t simply switch their electricity contracts to “100% renewable”:
- Electricity markets may be regulated
- On-site solar is limited by roof space, leasing constraints or capex
- Corporate PPAs are not accessible to every customer
In practice, your electricity is usually a country-grid mix of coal, gas and some renewables.
I-RECs offer a practical workaround: you keep using grid power, but you match it with certified renewable generation from registered projects. This lets you claim that your electricity is sourced from renewable power plants in a way that is recognised by international standards and by your customers’ sustainability teams.
RECs in Brief: Turning Grid Electricity into Credible Renewable Claims
Renewable Energy Certificates (RECs) are instruments that represent the renewable attributes of electricity generation: one REC typically corresponds to one megawatt-hour (MWh) of renewable power generated (from solar, wind, hydro, biomass, etc.).
I-RECs are created for each MWh of renewable energy produced by power plants registered on the I-REC Standard. Businesses can then purchase these I-RECs to ensure that no greenhouse gas has been released in the generation and consumption of the electricity they’ve used.
When a logistics company buys and retires RECs equivalent to its electricity consumption, it can credibly claim that this portion of its operations is powered by renewable electricity. Under the GHG Protocol Scope 2 Guidance, RECs are recognised as a valid tool for market-based accounting of electricity-related emissions and are widely accepted by frameworks such as SBTi, CDP, RE100 and others.
How Do Logistics Companies Benefit from Using I-RECs?
Competitive advantage in customer tenders
Large shippers now build climate criteria into logistics procurement and ask about lane-level emissions, energy sources at key sites, and concrete decarbonisation plans. Being able to show that priority warehouses and hubs run on certified renewable electricity helps you stand out against providers still relying on grid-average power, especially when customers have their own SBTi or net-zero targets.
A credible, auditable lever for Scope 2
RECs are issued, transferred and retired in recognised registries, creating a transparent chain of custody from renewable project to end-user. This makes Scope 2 reductions auditable and helps you meet expectations from frameworks like the GHG Protocol, CDP and SBTi—without redesigning your entire energy setup overnight.
Flexibility across countries and growth plans
Logistics networks change constantly: new DCs open, others close, volumes shift and customers request “green” options in new locations. RECs let you adjust renewable electricity coverage annually to follow your footprint and demand, which is especially useful in markets where PPAs or large on-site solar are not yet feasible at every site.
How to Start Using I-RECs for Logistics Companies
Getting started is straightforward:
- Calculate your electricity consumption for the period (e.g. 2025)
- Decide how much of this you wish to switch to renewable sources, depending on your targets or needs
- Purchase the equivalent number of I-RECs
- Retire the I-RECs with your company’s details attached
An example of an I-REC Redemption Statement, retired by Monsoon on behalf of our clients, is shown below:
The rules on eligibility (no double counting, correct time period, matching geography) matter. Working with an experienced partner helps ensure your I-RECs are fully compliant and defensible in audits and aligned with customers’ expectations.
RECs, Carbon Credits, and Fuel: Getting the Roles Right
A frequent source of confusion is the relationship between RECs and carbon credits.
- RECs address electricity-related emissions (Scope 2).
- Carbon credits typically address fuel and other residual emissions (Scope 1 and parts of Scope 3) – for example, diesel used in trucking or bunker fuel in shipping.
For a freight forwarder or 3PL, a robust climate strategy may involve both:
- Using RECs to reduce Scope 2 emissions from warehouses, hubs, and offices
- Later exploring high-quality carbon credits to offset remaining fuel emissions that cannot be eliminated through efficiency or low-carbon fuels in the short to medium term
The important point is to use each instrument where it is most appropriate and cost-effective, in line with international standards and emerging “high-integrity” guidance.
How to Buy I-RECs for Logistics Companies
Monsoon Carbon is a trusted provider of verified I-RECs for logistics, manufacturers and other high-energy sectors. We source I-RECs from a wide range of accredited renewable power plants worldwide and can supply them on a spot or forward basis. We also provide carbon credits.
We help logistics companies to:
- Identify which sites and electricity loads to cover first
- Design a practical I-REC strategy that fits budgets and customer requirements
- Purchase and retire I-RECs in line with international standards
- Prepare the documentation needed for audits, ESG reporting and shipper requests
If you want your warehouses, hubs and offices to be credibly matched with renewable electricity – and to show that clearly to your customers, get in touch with Monsoon Carbon to buy I-RECs for your logistics operations and take a clear, measurable step toward renewable-powered logistics.
WhatsApp
Zalo
