MD NJ OH PA VA DC USA
Earnable, Tradable Thermal Credits.
A developing credit-based compliance program for clean heating and energy efficiency.
Empowering 60% emissions reduction in MD by 2031 - net-zero emissions by 2045
Be the first to earn through this program with Flett Exchange
1 CHC = 1 mtCO₂e

One metric ton of carbon dioxide reduced or avoided through eligible clean heat & emissions reduction measures.

Market Report & Scope of Services

Maryland Clean Heat Credits (CHCs)

A tradable thermal credit based on greenhouse gas reduction measures.

  • Air Source Heat Pumps
  • Electric Water Heaters
  • Geothermal Heat Pumps
  • Solar Thermal
  • Electric Resistance Furnaces
  • Weatherization
  • Biofuel Blends (3+ Types)

Fuel suppliers, installers, businesses, and individuals located in Maryland earn CHCs based on lifecycle mtCO₂e avoided through clean heat & emissions reduction measures.

Who can earn CHCs?

Clean Heat Credits can be earned by organizations that provide zero-emission heating equipment and weatherization upgrades to Maryland residents.

Maryland Policy

MD Clean Heat Standard

The Climate Solutions Now Act of 2022 (SB 528) requires Maryland to reduce statewide greenhouse gas emissions 60% below 2006 levels by 2031 and reach net-zero emissions by 2045.1 It directs the Maryland Department of the Environment to develop plans focused on building decarbonization and electrification.

1 Climate Solutions Now Act of 2022, 2022 Md. Laws Ch. 38 (SB 528). Source

The emerging Clean Heat Credit market in Maryland will require the procurement & retirement of CHCs by heating fuel and natural gas companies to comply with the Clean Heat Standard. Clean Heat Credits can be generated by entities that provide weatherization services, energy efficiency equipment upgrades, or bio-fuel delivery to Maryland residents.

These credits will be tradable; the Clean Heat Standard creates demand for this product by issuing a yearly tariff onto fuel delivery companies based on their total yearly GHG emissions measured in mtCO₂e. The Maryland Department of Energy will allow the obligated credit buyers to purchase CHC credits, each representing one metric ton of carbon dioxide, to offset their CHS liability.

1 CHC = 1 mtCO₂e
One metric ton of carbon dioxide reduced or avoided.2
2 Maryland Department of the Environment, Clean Heat Rules: Clean Heat Standard and Zero-Emission Heating Equipment Standard, presentation to Air Quality Control Advisory Council 31 (Sept. 16, 2024). Source

CHS carve-out for Low to Moderate Income (LMI)

Maryland's Clean Heat Standard (CHS) is designed with Energy Justice in mind; fossil fuel companies are obligated to purchase CHCs from clean heat projects in LMI and energy burdened households. Organizations that provide eligible services to LMI Marylanders will be crucial in helping fossil heating companies meet specific energy equity and equal access obligations.3

3 Maryland's Climate Solutions Now Act of 2022 (SB 528) commits the state to reducing GHG emissions 60 percent below 2006 levels by 2031 and achieving net-zero emissions by 2045. CHS design work contains an explicit LMI carve-out that requires a minimum share of clean heat credits to be generated from measures in LMI households and communities. Source
Flett Exchange

Flett Exchange CHC Manager

Aggregation, Portfolio Management, and Procurement for Clean Heat Credits under the Maryland Clean Heat Standard.4

Flett Exchange assists organizations with the technical burden of credit origination across six (6) energy efficiency and weatherization measures, and three (3) renewable fuel measures.

4 Maryland Department of the Environment, "Clean Heat Rules," overview of Maryland's planned Clean Heat Standard and related requirements for clean heat services and providers. Source
Get in Touch

Interested in CHC Manager?

Send us a note and a member of our team will follow up to discuss how Flett Exchange can help your organization earn and monetize Clean Heat Credits.