Emission Reduction Credits (ERC)

1st Climate Solutions currently holds ERCs in the Los Angeles Air Basin, San Joaquin Valley Air Basin, and the Bay Area Air Basin.

What are Emission Reduction Credits?

An ERC is a credit earned by a company when it reduces air emissions beyond what is required by existing regulations. It is an asset that can be utilized by its owner or sold to another company that need emission offsets. An emission offset occurs when a company compensates for an increase in emissions in one area by decreasing emissions in another area. Emission offset requirements include a set tradeoff ratio that ensures a continuous decrease in air pollution. When a company redeems emission reduction credit (ERC) certificates to offset increased pollution levels, the end result is a decrease in air pollution. When the certificates are redeemed, the ERCs are permanently retired. The ERC system is both good for business and good for the air.