Directive (EU) 2018/2001 requires Member States to issue Guarantees of Origin (GOs) for renewable electricity and other energy carriers. GOs provide proof of the renewable origin of energy and support transparency and voluntary markets. RED II entered into force in 2018, followed by RED III in 2023 under Fit for 55, which increased the ambition level but retained the GO system.
It sets out rules on:
- Standardised issuance, transfer, and cancellation of GOs.
- One GO per MWh of renewable energy produced.
- Mutual recognition of GOs across Member States.
- Use of GOs for disclosure to final consumers and green product certification.
GOs are essential for green electricity products and renewable PPAs. Traders and exchanges use GOs to structure voluntary renewable offerings, trace supply origin, and comply with disclosure requirements. GO prices influence the economics of green supply contracts and are increasingly traded in spot and auction-based markets. Full interoperability and registry updates are key for cross-border trading.