Emissions Reduction Purchase Agreement - ERPA

The cover says "No beans! No beans!"

One of the market-based methods for lowering carbon emissions is called a "carbon offset program." Under the system, companies are allotted a certain level of carbon emissions. They can then trade allotments with other companies.

An emissions reduction purchase agreement represents the contract that facilitates these carbon offset transactions.

CO2 Spew Co. creates more carbon than it should. Clear Sky Inc. doesn't get anywhere near its allotment. So CO2 Spew buys some of Clear Sky's carbon credits for cash. They write up an ERPA, with Clear Sky sending some carbon credits to CO2 Spew in exchange for a few million bucks.