GCs
EN
English简体中文Français

APAC market

Japan I-REC Market: New Labelling Rules as Issuance Surges

Jakob Olsen

Energy Attribute Certificates · Analysis

I-REC Labels in Japan Get Major Update Amid Record Growth

By granularcertificates.com — Energy Markets Desk April 6, 2026 The International Tracking Standard Foundation (I-TRACK) has issued updated labelling guidance for International Renewable Energy Certificates (I-RECs) in Japan, aiming to resolve long-standing confusion around how certificates interact with the country's complex domestic Energy Attribute Certificate (EAC) framework — particularly the Feed-in Tariff Non-Fossil Certificates (FiT NFCs). The clarification comes as Japan's I-REC issuance, administered by the accredited national issuer Local Good, continues its upward trajectory. Since the first certificates were issued in mid-2021, volumes have grown steadily — though Japan remains a minor player in absolute terms relative to markets like Brazil, the UAE, and Türkiye. The new labelling framework explicitly delineates how I-REC(E) certificates should be classified when issued alongside, or in lieu of, domestic instruments, addressing persistent market uncertainty.

Japan's Multi-Layered EAC Ecosystem

Japan hosts four coexisting renewable energy certificate schemes: FiT Non-Fossil Certificates (NFCs), non-FiT NFCs, Green Electricity Certificates (GECs), J-Credits, and I-RECs. This complexity — unmatched in any other Asian market — has long deterred multinational corporates seeking streamlined Scope 2 reporting. The Ministry of Economy, Trade and Industry (METI) has progressively loosened I-REC issuance criteria since 2021, most notably by permitting I-REC(E) issuance for bilateral contracts involving FiT-supported facilities, provided that end-users retire both the FiT NFC and the I-REC(E) to avoid double counting. Japan's EAC Framework — Certificate Types and Key Attributes Source: I-TRACK Foundation, METI, JEPX (2026) The updated labelling guidance now requires that any I-REC(E) issued from a device that also generates FiT NFCs must carry a specific "FiT-linked" label. This label signals to buyers and auditors that the certificate's environmental claim is conditional on the concurrent retirement of the corresponding FiT NFC — a safeguard critical for maintaining market integrity.

Global I-REC Issuance Continues to Surge

The Japanese developments unfold against a backdrop of explosive global I-REC growth. Through the first seven months of 2025, approximately 227 million I-REC(E) certificates were issued worldwide — a 12% increase over the same period in 2024. Redemptions reached 187 million, up 8% year-on-year. Brazil led all markets with 54 million certificates issued, while Saudi Arabia saw issuance more than double from 5.3 million in 2024 to over 11 million. Global I-REC(E) Issuance Growth (TWh), 2019–2025* Source: I-TRACK Foundation Market Statistics. *2025 data annualised from Jan–Jul figures. Key Takeaway: The I-TRACK Foundation's labelling clarification in Japan is not merely administrative — it sets a precedent for how I-REC certificates should coexist with national EAC schemes in complex regulatory environments like Mexico, Taiwan, and potentially China.

Implications for Corporate Buyers

For RE100 members and CDP-reporting corporates with operations in Japan, the updated guidance offers both clarity and caution. The "FiT-linked" label strengthens the credibility of I-REC-based renewable energy claims in Japan by enforcing transparent dual-retirement. However, it also adds a procurement step: buyers must now verify that both instruments have been retired in tandem. With Japan's Seventh Strategic Energy Plan targeting up to 50% renewable electricity by 2040 and corporate PPA activity accelerating, the I-REC market in Japan — though still small in volume — is positioned for meaningful expansion in the years ahead. Top 10 I-REC(E) Markets by Issuance Volume, Jan–Jul 2025 (Million MWh) Source: I-TRACK Foundation Market Statistics (August 2025) As the I-TRACK Foundation continues to expand its product codes — including pre-accredited standards for hydrogen, biogas, and carbon dioxide removal — the Japan precedent will likely inform how labelling frameworks are designed for these new certificate categories in regulated markets worldwide. © 2026 granularcertificates.com · All rights reserved · Sources: I-TRACK Foundation, METI, Quantum Commodity Intelligence, JEPX

Related reading

Search