Emission Reduction Credit (ERC)

An Emission Reduction Credit (ERC) is a market-based certificate that represents a reduction in greenhouse gas emissions. When a company or organization reduces its emissions below a certain level, it can earn ERCs, which can be sold to others who need to offset their emissions. This system encourages businesses to invest in cleaner technologies and practices, creating a financial incentive to lower pollution levels. ERCs are part of broader efforts to combat climate change by promoting sustainability and responsible environmental stewardship.