Commercial and Industrial (C&I) customers face a myriad of challenges when it comes to procuring Renewable Energy Certificates (RECs). Let's explore how TraceX tackles the key challenges, offering much needed transparency, authenticity, simplicity, and risk mitigation to streamline REC procurement for C&I customers.

1. Transparency for informed decisions:
One of the primary challenges C&I customers encounter is the lack of standardised pricing and transaction terms. Buyers have to negotiate and spend time drawing up contracts with counterparties. TraceX eliminates this overhead by providing a transparent marketplace that connects buyers and sellers. With customisable filters, C&I customers can precisely pinpoint the RECs that align with their unique needs, facilitating informed purchasing decisions. Furthermore, buyers can use customisable filters to find the RECs they exactly need. This will be particularly relevant for C&I customers who want to buy RECs with voluntary certifications
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2. Ensuring verification and authenticity of RECs:
The REC market has witnessed many greenwashing and high-profile REC scandals because of a lack of verification of RECs. TraceX addresses this by being digitally integrated with M-RETS, ensuring that all RECs on the platform are sourced from the M-RETS registry. For example, a company struggling with the legitimacy of RECs can mitigate this by confirming each certificate's origin directly from M-RETS using TraceX, eliminating the risk of fraudulent certificates. This integration not only prevents double-counting but also assures users of the legitimacy of the certificates. Integration with CRS adds another layer of trust, ensuring that RECs are timely and accurately aligned with facility expiration dates. This means companies can confidently trade in RECs, knowing that their authenticity and validity are thoroughly vetted by TraceX’s robust system.
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3. Simplifying contract negotiation and legal complexities:
OTC transactions often involve time-consuming contract negotiations, adding legal complexities to the procurement process. TraceX streamlines this by having users accept standardised terms and conditions upon signup, significantly simplifying the legal aspects for companies. This approach streamlines back-office operations and cuts down on time expenditure, eliminating the need to draft individual contracts for each REC purchase. Consequently, firms can focus more on strategic decisions rather than getting bogged down in legal complexities.
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4. Market access for all and enhanced liquidity:
Smaller C&I customers often struggle to find the right prices and face liquidity issues on the OTC market. TraceX levels the playing field by offering market anonymity, making business size irrelevant in REC trading. This feature is especially beneficial for smaller companies who previously found it challenging to compete with larger entities. The platform's diverse list of buyers and sellers ensures a wide range of RECs, providing enhanced market liquidity. Additionally, TraceX allows for the creation of market signals by placing orders for RECs not currently available, encouraging market participants to respond to these signals and bring in new liquidity.
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5. Effortless regulatory compliance and reporting:
Keeping up with varying regulatory requirements across different regions and ensuring compliance can be a significant burden. Accurate reporting in user-friendly formats is essential for internal as well as external audits. TraceX provides on-demand reporting in both PDF and CSV, catering to various reporting needs. For companies grappling with compliance and reporting, this feature ensures that you can effortlessly integrate trade data into their systems and manage stakeholder requirements efficiently. The blockchain component of TraceX offers tamper-proof record, providing an additional layer of security and trust in record-keeping.
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6. Safeguarding transactions for risk mitigation:
The OTC market introduces the risk of counterparties not fulfilling obligations. TraceX employs extensive Know Your Customer (KYC) processes, ensuring users are fit and proper. For companies concerned about counterparty risk, this means that TraceX conducts thorough background checks, ensuring a safer trading environment. Additionally, a balance check before allowing bids to match and the movement of RECs only after funds reach the seller's account mitigate a significant portion of counterparty risk, ensuring that transactions are secure and reliable.
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7. Informed decision-making to counter price volatility:
The OTC market's price volatility can pose financial risks for C&I customers. TraceX empowers users with a transparent and responsive market dashboard, allowing them to assimilate market signals and make informed decisions. This feature is particularly beneficial for companies looking to navigate the volatile REC market wisely. The flexibility to withdraw unfulfilled orders and re-enter the market at different price points ensures adaptability in the face of market fluctuations, offering companies the agility to respond to market dynamics effectively.
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8. Minimising counterparty risk for seamless RECs trading:
‍In OTC transactions, there is always the risk that the other party may not fulfil their obligations. TraceX prioritises security by subjecting all users to rigorous KYC checks, which is especially useful for companies wary of the financial stability of their counterparts. A balance check precedes bid matching, confirming ample funds for order substantiation. The platform ensures a seamless transition of RECs only after funds reach the seller's account, minimising counterparty risks. This means companies can engage in REC trading with greater confidence, knowing that TraceX provides a secure and reliable trading environment.

In a nutshell:

By addressing challenges systematically, TraceX is steering businesses toward a future where transparency, authenticity, and regulatory compliance are practical outcomes, not just goals. In the evolving landscape of renewable energy, TraceX acts as a reliable guide, helping C&I leaders make informed, efficient, and responsible energy procurement decisions.

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