What do emission reduction credits (ERCs) encourage businesses to do?

Emission reduction credits (ERCs) are designed to incentivize businesses to implement practices that go beyond the regulatory requirements for air emissions control. When a company achieves reductions in emissions that exceed the mandated levels, they can earn ERCs, which can then be sold or traded. This system encourages companies to invest in cleaner technologies or processes, leading to a more significant overall reduction in emissions within the region.

By focusing on enhancing treatment levels beyond what is required, businesses not only contribute to environmental protection but can also benefit financially from the sale of the credits they earn. This creates a market-based approach to pollution control, where businesses are motivated to reduce their emissions effectively while also maintaining or possibly even increasing their production.