Environmental Attribute Certificate (EAC)

An Environmental Attribute Certificate (EAC) is a tradable instrument that represents the positive environmental benefits of a product or process, separate from its physical attributes. For example, an EAC can verify that one megawatt-hour of electricity was generated from renewable sources or that a ton of cement was produced with lower carbon emissions. This system allows buyers to financially support and claim the environmental benefits of sustainable production, even if they cannot physically use the green product itself, enabling flexibility in decarbonization efforts.