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.
Our Partners
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Eco-Energy, the developer of the TERC Program, leverages its expertise in clean energy logistics and renewable fuels to create a transparent, market-driven solution for reducing transportation emissions.
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Xpansiv serves as the registry for the TERC Program, providing a secure, transparent platform for issuing, tracking, and retiring Transport Emission Reduction Certificates (TERCs). As a leader in environmental commodity markets, Xpansiv ensures credible, third-party verified transactions through its Digital Fuels Registry, enabling companies to confidently invest in low-carbon transportation solutions.
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ClimatePal serves as the feasibility study partner for the TERC Program, providing in-depth analysis and modeling to ensure the program’s effectiveness and scalability. With expertise in carbon markets and lifecycle assessments, ClimatePal evaluates the economic and environmental impact of Transport Emission Reduction Certificates (TERCs), helping to refine methodologies and validate emissions reduction claims.
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Weaver played a role in the development of the TERC Program, bringing its expertise in verification, assurance, and environmental compliance to ensure the integrity of Transport Emission Reduction Certificates (TERCs). As a leading independent audit and advisory firm, Weaver supports the verification framework, ensuring that emissions reductions claimed through TERC are accurate, transparent, and aligned with industry best practices.
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.
How are TERCs verified?
The TERC Program upholds the highest standards of credibility, transparency, and environmental integrity through independent third-party validation and verification. These processes ensure that every Transport Emission Reduction Certificate (TERC) accurately represents measurable and verifiable emissions reductions from the use of low-carbon transportation fuels, such as renewable diesel and biodiesel.
TERC validation confirms that projects meet established eligibility criteria and carbon reduction methodologies, while verification provides independent assessment and confirmation that reported emissions reductions are accurate, consistent, and aligned with industry standards. Approved verification bodies conduct rigorous evaluations using recognized lifecycle carbon analysis models, ensuring compliance with program requirements and reinforcing the credibility of emissions reduction claims.
By maintaining a robust, third-party verified system, the TERC Program offers businesses a trusted solution for supply chain decarbonization, helping them achieve sustainability goals with confidence and accountability.
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.
