Energy Efficiency Certificate (EEC)

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A tradable environmental commodity that represents an MWh of energy consumption reduced through an energy efficiency activity. Although far less common than RPS compliance RECs, they also serve a compliance function in select US-states and other countries where there are government-mandated quotas for energy savings. These mandates are placed on electricity distribution utilities. In theory, EECs are analogous with carbon offset credits but are denoted in units of energy reductions rather than emission reductions. To be counted as an emission reduction an EEC project would need to satisfy the same quality criteria (e.g., additionality and accurate quantification) and assurance processes as a carbon offset project. EECs are denoted in terms of MWh of energy savings. Therefore, they would have to be converted to metric tons of GHG emission reductions by analysing the marginal impact of the underlying energy efficiency project on electricity generation emissions.

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Carbon Offset Guide: Energy Efficiency Certificates