This study provides a comprehensive overview of India’s Renewable Energy Certificate (REC) mechanism and outlines key trends in its evolution since 2010. RECs are market instruments that allow power distribution companies (disoms) and others to meet renewable purchase obligations (RPO) without buying green power. They are expected to play a key balancing role in India’s energy transition. The study examines various challenges faced by the REC market, including an ongoing trading suspension and a demand shortfall driven by poor RPO compliance. It also lists solutions that could prepare the market for the pulls and pressures that will accompany India’s ambitious rollout of green power capacity.