How does a REC differ from a carbon credit?

	Renewable Energy Certificate (REC)	Carbon credit
Unit	1 MWh of renewable electricity (subject to multiplier)	1 tonne of CO2 equivalent
What it proves	Electricity came from a renewable source	Emissions were avoided or removed compared with a baseline
Main use	RPO/RCO compliance; Scope 2 market-based claims	Offsetting or compliance against emissions targets
Additionality test	Not required	Central to quality standards
In India, governed by	CERC REC Regulations, 2022	CCTS 2023 (Carbon Credit Certificates), or voluntary standards such as Verra and Gold Standard

The key point: a REC is about where your electricity came from, not about tonnes of CO2. It can lower your reported Scope 2 emissions under the market-based method, but it should not be presented as a carbon offset for your Scope 1 or Scope 3 emissions. The same MWh should also not be sold both as a REC and as a carbon credit.