INTRODUCING

TRANSPORT EMISSION REDUCTION CERTIFICATE

A TERC is a tradable digital certificate representing the full life-cycle greenhouse gas emissions of low-carbon fuels.

Transport Emission Reduction Certificates (TERCs) offer buyers the ability to achieve corporate sustainability goals while supporting the deployment of low-carbon fuels in the U.S. The program incentivizes alternative, non-fossil fuel producers to lower the carbon intensity of their product and provide credible claims of carbon avoidance to buyers.

PARTNERS

TERC - Transport Emissions Reduction Certificate Low-Carbon Xpansiv
TERC - Transport Emissions Reduction Certificate Low-Carbon Climate Pal
TERC - Transport Emissions Reduction Certificate Low-Carbon Weaver
TERC - Transport Emissions Reduction Certificate Low-Carbon Eco-Energy

Program Overview

The Transport Emission Reduction Certificate (TERC) Program is a voluntary, market-based initiative aimed at reducing greenhouse gas emissions from transportation associated with low-carbon fuel production and use across the United States.

Inspired by the success of regulated low-carbon fuel standards, which are designed to reduce greenhouse gas emissions in the future below a certain level, the TERC Program enlists the voluntary participation of fuel producers and fuel consumers to drive down the carbon intensity of transportation fuels.

The program aims to accelerate the decarbonization of the U.S. transportation sector by focusing on low-carbon fuels within the fuel-vehicle system. This voluntary carbon program, driven by a market-based mechanism, called Book and Claim, fosters innovation in clean fuel technologies and advances the transition to a low-carbon economy by providing organizations with a pathway to address their sustainability goals through investment in scaling low-carbon solutions.

How are TERCs measured?

Independent engineering reports score the lifecycle carbon footprint of eligible alternative fuel volumes using a version of Argonne National Laboratory’s Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET®) Model. This score is compared alongside a petroleum baseline decreasing annual carbon intensity benchmark. The resulting difference is reflected as a volume of CO2e reduced.

The transportation sector accounts for 28% of U.S. greenhouse gas emissions, presenting particularly challenging hurdles to abatement due to technological limitations, infrastructure constraints, and high capital requirements. Achieving a shift toward low-carbon alternatives will require a combination of policy interventions, technological advancements, and behavioral changes.

What makes TERC unique?

State and national mandated LCFS programs are proven effective at lowering fuel pool emissions, diversifying supply, and promoting investment in technology, but only obligated parties are required to participate. The TERC program allows low-carbon, renewable fuel producers to voluntarily create standardized and transparent certificates verifying greenhouse gas (GHG) benefits compared to petroleum alternatives. TERC buyers gain the ability to claim reductions and mitigate the environmental impact from the fuels they use regularly.