New Delhi [India], December 14 (ANI): REC Limited, a government-owned power sector company, has completed an independent verification confirming that funds raised through its green bonds were fully allocated to environmentally sustainable projects. The bonds include USD 500 million issued in September 2024 and approximately JPY 61 billion issued in January 2024 under REC’s Green Finance Framework.
The verification, conducted in line with the International Capital Market Association (ICMA) Green Bond Principles, confirmed that the net proceeds from both issuances were used exclusively for eligible projects. REC’s inaugural Green Bond Impact Report for FY 2025 reflects a maturing green-finance ecosystem emphasizing both accountability and ambition.
Developed with technical input and international benchmarking—including support from the Global Green Growth Institute (GGGI)—the report introduces a dual approach to measuring renewable energy and climate benefits: financed impact, representing REC’s proportional contribution to total project costs, and enabled impact, capturing additional generation and emissions abatement beyond REC’s share.
During FY 2025, REC’s portfolio of 11 operational projects achieved 0.87 million tCO₂ of financed reductions and 1.34 million tCO₂ of enabled reductions, supported by approximately 1 billion kWh of financed renewable generation across 2,032 MW of installed capacity. Emission reductions were calculated using India’s official Combined Margin emission factor (0.861 tCO₂/MWh), with a 7 MW solar project following small-scale CDM guidance (0.727 tCO₂/MWh).
REC’s internal data-controls framework ensures transparent and verifiable impact reporting, excluding foreclosed projects and assigning zero impact to under-construction assets until commissioning. Independent verification aligned with ICMA standards reinforces the integrity of the reporting system and ensures audit readiness.
The green bond portfolio spans multiple states and technologies. On a combined financed and enabled basis, Rajasthan accounted for 70.9% of total emission reductions, followed by Gujarat (16%), Karnataka (5.1%), and Bihar (3.6%), with additional contributions from Andhra Pradesh, Uttar Pradesh, Haryana, and Maharashtra. The portfolio includes renewable energy, biogas, pumped storage, and low-carbon mobility initiatives, such as e-buses and the Mumbai Metro, ensuring resilience and scale in India’s energy transition.
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