Verified Emisions Reductions (VERs)
VERs are environmental securities that represent one metric ton of reduced greenhouse gas emissions over the course of one year.
VERs may vary in value from as little as $2 for low-quality offsets to as much as $12 for retail offsets that are connected with a compelling story. Typically, however, good-quality VERs that are being developed at the wholesale level will sell for between $4.50 and $6.50 per VER. In order to be viable, a typical project must produce a minimum of 10,000 VERs per year.
Where development of VERs is concerned, we look at projects that:
- capture agricultural, landfill, or coal mine methane;
- involve fuel switches from fossil fuels to renewable resources, such as woody biomass;
- improve industrial or municipal efficiencies; or,
- sequester carbon in trees via afforestation, conversion avoidance, or use of
other progressive forest-management techniques.
All of the above-summarized practices either reduce GHG emissions or capture CO2 in trees. Thus, all of the project types, as set forth above, lead to development of carbon credits, or VERs.