Offset - VER

Verified Emission Reductions (VERs) are units of greenhouse gas emission reduction that has been verified by an independent auditor, but has not yet undergone the procedures and may not yet have met the requirements for verification, certification and issuance of Certified Emission Reductions (CERs) or Emission Reduction Units (ERUs) under the Kyoto Protocol.

VERs are emissions units that exists beyond the Kyoto Protocol, but they can be used to compensate carbon emissions (1 VER corresponds to one tonne of CO2 equivalent). Buyers of VERs assume a regulatory risks (i.e. the risk that the VERs are not ultimately registered as CERs or ERUs). Therefore, they pay a discounted price for VERs, which takes the inherent regulatory risk into account.