Emission Reduction Purchase Agreement (ERPA)

An Emission Reduction Purchase Agreement (ERPA) is a formal contract between a project that reduces greenhouse gases, like a renewable energy or forest preservation project, and a buyer who wants to support environmental efforts. The agreement specifies that the project will deliver a certain amount of emission reductions (like carbon credits) over time, in exchange for payment. This helps fund sustainable projects, contributing to climate change mitigation while providing the buyer with verified environmental benefits. Essentially, it's a financial arrangement that supports reducing emissions through verified projects.