New Delhi: REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, Government of India, has successfully completed post-issuance assurance for its Green Bonds worth USD 500 million issued in September 2024 and JPY 61.10 billion issued in January 2024. Both issuances were carried out under REC’s Green Finance Framework.
The independent verification, conducted in line with the International Capital Market Association (ICMA)’s Green Bond Principles, confirmed that the entire net proceeds from both bond issuances were fully allocated to eligible green projects, reinforcing REC’s commitment to transparency and sustainable finance.
REC’s Green Impact Comparable to Neutralising Delhi Metro’s Annual Emissions
REC’s inaugural Green Bond Impact Report for FY 2025 highlights the significant climate benefits generated by projects financed through the bonds. The report reveals that REC’s financed emission reductions of 0.87 million tonnes of CO₂ (tCO₂) are substantial enough to neutralise the entire projected carbon emissions of the Delhi Metro for 2025, with additional climate benefits beyond this benchmark.
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The report reflects the growing maturity of India’s green finance ecosystem, where accountability, measurable impact, and verification are becoming as critical as capital mobilisation.
Global Benchmarking and Collaboration with GGGI
The impact report was developed through close technical collaboration and international benchmarking, with expert support from the Global Green Growth Institute (GGGI). GGGI had earlier reaffirmed REC’s Green Finance Framework during the Second Party Opinion (SPO) process prior to the bond issuances.
This continued collaboration helped align REC’s post-issuance assurance and impact reporting with evolving ICMA standards and global best practices, strengthening investor confidence.
Dual Approach Enhances Transparency in Climate Impact Reporting
REC introduced a dual impact assessment approach in its FY 2025 report –
- Financed impact, representing REC’s proportional contribution based on its share in total project financing
- Enabled impact, capturing additional renewable generation and emission reductions achieved beyond REC’s direct financing share
During FY 2025, 11 operational projects delivered –
- 0.87 million tCO₂ of financed emission reductions
- 1.34 million tCO₂ of enabled emission reductions
- Approximately 1 billion kWh of financed renewable energy generation
- Across 2,032 MW of total installed capacity
By disclosing both financed and enabled impacts, REC has strengthened transparency on how its capital directly and indirectly supports India’s decarbonisation goals.
Robust Methodology and Audit-Ready Controls
Avoided emissions were calculated using India’s official Combined Margin emission factor of 0.861 tCO₂/MWh for grid-connected projects. One 7 MW solar project followed small-scale CDM guidance, using an import-adjusted weighted average emission factor of 0.727 tCO₂/MWh, ensuring methodological appropriateness.
REC’s internal data control framework ensures –
- Foreclosed projects are excluded from impact calculations
- Under-construction projects record zero impact until commissioning
These safeguards, combined with independent verification aligned with ICMA principles, reinforce the credibility and audit readiness of REC’s impact reporting.
Green Projects Span Multiple States and Technologies
REC’s green bond portfolio reflects a geographically and technologically diversified clean energy footprint across India. On a combined financed and enabled basis:
- Rajasthan contributed 70.9% of total emission reductions
- Gujarat accounted for 16%
- Karnataka contributed 5.1%
- Bihar contributed 3.6%
Additional projects are located in Andhra Pradesh, Uttar Pradesh, Haryana, and Maharashtra.
The diversified portfolio spans renewable energy, biogas, pumped storage, low-carbon mobility solutions such as e-buses and the Mumbai Metro, enhancing both resilience and scale in India’s energy transition.
REC and GGGI Reiterate Commitment to India’s Green Transition
Commenting on the milestone, Shri Harsh Baweja, Director (Finance), REC Ltd, said the post-issuance assurance underscores REC’s commitment to sustainable finance, climate accountability, green job creation, and market transformation.
Mr Soumya Garnaik, India Country Representative, GGGI, highlighted that GGGI will continue to leverage its global expertise to support institutions like REC in catalysing the large-scale capital required for India’s green transition.
About REC Limited
REC Limited is a prominent public sector undertaking under the Ministry of Power, Government of India, headquartered at Core-4, SCOPE Complex, New Delhi, with its corporate office in Gurugram, Haryana. The company plays a crucial role in financing and supporting India’s renewable energy and power infrastructure projects, contributing significantly to the nation’s energy security and sustainable development goals.
