Transport Emission Reduction Certificates (TERCs)

Transport Emission Reduction Certificates (TERCs) are tradable digital certificates representing verified greenhouse gas reductions associated with low-carbon transportation fuels such as renewable diesel, biodiesel, or ethanol. Developed as a voluntary market mechanism in the United States, TERCs are used to support Scope 1 and Scope 3 emissions mitigation and sustainable-fuel procurement strategies. Each certificate typically corresponds to a quantified amount of avoided CO2-equivalent emissions based on lifecycle carbon-intensity calculations and third-party verification.