Voluntary (Verified Emission Reduction - VER)

Increasing numbers of companies are voluntarily offsetting the emissions associated with their activities as a part of their corporate social responsibility. Greenhouse gases are emitted when fossil-fuelled energy is consumed. Some corporate emissions can be managed - we can use less energy, travel less and use public transport - but some emissions are practically unavoidable. The environmental impact of these emissions can be offset by reducing elsewhere - helping someone else to emit less. This is generally referred to as ‘carbon offsetting’.

The idea behind offsetting is simple. You calculate your emissions and then decide the amount to offset. You then neutralise the impact of the emissions on the environment and climate change by investing in emissions offsets. The purchased offsets are 'retired' and taken out of circulation. When the offsets come from projects, the money you pay goes to a local community or business to help fund more environmentally-friendly (and lower emission) development options which can include new technology. The projects often have direct benefits to the local community.

The offsets used can be Kyoto instruments – EUAs, CERs or ERUs – but often companies buy verified emission reductions (VERs), which essentially are the same as a CER, but omitting the last stage of the certification process. VERs are attractive, because they are lower cost, and often come from small, sustainable projects which cannot afford to go through the UN certification process.

Source : CantorCO2