The Renewable Energy Target (RET) has served as the backbone of Australia’s environmental commodities markets since it was introduced in 2001. The RET obliges Liable Entities, typically electricity providers, to purchase and surrender certificates in order for a prescribed percentage of electricity to be generated from renewable sources.
Prior to 2011, the certificates that were created and surrendered were Renewable Energy Certificates (RECs). In 2011, the RET, and hence the REC market, were split into the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme. The relevant markets became known as Large-scale Generation Certificates (LGCs) and Small-scale Technology Certificates (STCs).