The Verified Emission Reduction (VERs) - Certification Process by GMO

The verification process of voluntary carbon credits / VERs is structured and measured to guarantee that transparency and audit trails for the greenhouse gas reductions are real, effective and in place. At Green Market Opportunities we only deal in credits that have undergone this process, this means your safe in the knowledge that all the credits offered are 100% transparent.

There are a number of stages involved to get a through the accreditation process, from the project idea to the certificate of the VER standard and the ultimate registration. Below is a generic guide to help you understand.

Step 1: PROJECT IDEA

            This is where the concept of a carbon project is outlined using the ‘Project Ideal Note’         (PIN) document. The compatibility of the project is checked if it is compatible with the    strict Clean Development Mechanism (CDM) criteria as detailed under UN protocols.

Step 2: PROJECT DESIGN DOCUMENT (PDD)

            This is written by the project developer and contains key information such as:

            • Emission reductions expected.

            • Methodology used and monitoring plan.

            • Reference scenario describes how emissions would have developed if the project is          not completed.

Step 3: VALIDATION & REGISTRATION

            The PDD then needs to be checked and validated by an independent institution.     During   this process, the methods, additionally and the monitoring plan are strictly     assessed.

Step 4: MONITORING REPORTS

            Following the commissioning of the project, the monitoring phase begins. According           to the monitoring plan described in the PDD, the required parameters are now     monitored, so that the emission reductions can be calculated and quantified. This is           all documented in a monitoring report.

Step 5: VERIFICATION / VALIDATION

            Just as the PDD was validated, the monitoring reports also need to be checked by an         independent organisation. This process is called ‘verification’ and is generally done   annually by a third party auditing executive board, one of 16 authorised by the UN to      do so, this decides on registration. Verification assesses the completeness and     correctness of the monitoring report.

Step 6: ISSUANCE OF CREDITS

            Now that the verification process has been completed. A certificate is then written   stating the amount of Green House Gas (GHG) reductions over the time period of the specified project and therefore the number of credits that will be issued.

Step 7: REGISTRY

            The Carbon Credits will then be held on a register for security, when you purchase your credits they will be assigned to you on the register and held in your own account. Presenting you with a choice of exit strategies.

Each report on the stage of the process is available for the general public to see via the project database, the Verified Carbon Standard (VCS) or Gold Standard (GS) as well as official registries such as Markit which is the official registry for Voluntary Carbon Credits for the Carbon Trade Exchange (CTX), the CTX is the worlds first spot trade exchange for voluntary carbon credits.

For more information about the carbon trade market, projects of standards please visit

GMO - Market Guide

GMO – Credit Guide

GMO – Project Guide

OFFSETTING YOUR CARBON FOOTPRINT TO BECOME CARBON NEUTRAL – By Green Market Opportunities

OFFSETTING YOUR CARBON FOOTPRINT TO BE COME CARBON NEUTRAL

There is an increasing demand for organisations to incorporate Corporate Social Responsibility (CSR) into their business policies. Having a green working attitude is becoming big business, the PR implications of CSR cannot be over-emphasised, it has been said that companies are seeing company valuation increases by as much as 5 to 10 percent, on top of that clients are increasing turning to those companies who are environmentally conscious.

Green Market Opportunities recognises that we are in a world of increased corporate social responsibility (CSR) where consumers and employees are more concerned about the environment. This means your business's corporate carbon strategy makes both corporate and commercial sense. By using electricity to run your offices, gas to heat them, and from the fuel that you put in your company’s fleet, every business causes a direct impact on the environment. The projects the carbon offsets derive from may be in another part of the world to where you created the emissions; however they will still have the same positive effect on the environment. United Nations Verified Emission Reductions (VERs) encompasses a wide range of projects which meet the demanding standards of the United Nations Clean Development Mechanisms (CDM).

The business case for CSR is increasingly recognised, here at GMO we want to work with you in creating opportunities for maximising cost-efficiency and profit through sustainability initiatives in offsetting your corporate carbon footprint.

Branding

In today’s marketplace more and more companies seek to highlight their Unique Selling Point (USP) which help then stand out from the ground or indeed these days, fit in. Social acceptance is at the forefront of the minds of consumers, competitors and the general public.

CSR can play a role in building customer loyalty based on distinctive ethical values. Several major brands, such as The Co-operative Group, The Body Shop and Aveda are built on ethical and environmental values.

Reputation Risk

Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks.

Some companies may implement CSR-type values and ideals without a clearly defined team or program yet they manage to offset their carbon emissions and footprint, this doesn’t have to be a time or budget intensive activity but by showing you care it can build loyalty.

HR

CSR can also help improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering. CSR has been found to encourage customer orientation among frontline employees. A CSR program can help recruitment and increase staff retention, particularly within the competitive graduate student market. More so these days, do candidates ask about a companies CSR policy during an interview, and having a comprehensive policy can give distinct advantage over those companies that don’t’.

If you as an individual or corporate entity are looking at reducing or offsetting your carbon emissions, at GMOcarbon we know we can help, through our networks we are able to offer VERs at competitive market prices. All our projects are 100% transparent, you can review the entire project, the benefits of the project including any social and economic benefits to the local communities it affects. Offsetting your carbon footprint will not reverse the effects already caused by your carbon dioxide emissions. The harm to the environment caused by these emissions cannot be undone. However, by saving an equivalent amount of carbon dioxide elsewhere, you can help to minimise total global emissions.

For more information about offsetting to become carbon neutral visit GMO Offsetting

EXPLAINING THE TYPES OF CARBON CREDITS by Green Market Opportunities

Types of Carbon Credits

There are many types of credits within the carbon emissions market, we have covered the main types here. Importantly at Green Market Opportunities (GMO) we only deal in Voluntary Emission Reductions / VERs, Verified Emission Reductions. These voluntary carbon credits, a more commonly used term, come from Clean Development Mechanism projects that have been fully verified then validated, they are trackable, traceable and 100% transparent. These credits are Spot Trade credits, they are freely tradable and make a worth while consideration for a speculative part of ones portfolio over the medium term.

VER

Verified Emission Reductions are generated by projects that are then verified by a third party, but without the costs associated with CERs, which are a type of carbon credit subject to much more stringent regulation, pushing the price point higher. This means that individuals and companies can reduce their emissions in a more efficient and cost effective way. Despite there being less regulation, VERs are still subject to a extremely high standard, and emissions reductions must be real, measurable, permanent, additional to what is already being done, and independently verified.

Spot transactions are carried out for VERs, which have already been generated, and have completed or are in the process of verification by an independent third-party. Forward transactions are carried out for VERs with a generation schedule over several years, typically up until 2012. Green Market Opportunities does NOT trade forward contracts. Spot trade VERs trade over the counter (OTC) and on some exchanges such as the Chicago Climate Exchange (CCX), Carbon Trade Exchange. This is giving structure to this new and exciting market, and helping it grow.

We only source and trade in fully Verified Carbon Standard (VCS) and Gold Standard approved credits.

www.v-c-s.org

www.cdmgoldstandard.org

CER

Certified Emission Reductions (CERs) were created under the Kyoto Protocol's Clean Development Mechanism (CDM) to allow industrialised countries to invest in emission reducing projects in developing nations. The CDM projects generate CERs, credits that can then be used to offset emissions on the EU ETS. Once a CER has been issued it carries the same compliance value as an EUA.

CER credits are more highly regulated and must meet a number of criteria as defined by the CDM and the Kyoto Protocol, this makes the price point considerably higher. Like VERs, the emissions reductions must be real, measurable, permanent, additional to what is already being done, and independently verified.

EUA

EU Emission Allowances, or EUAs, are the credits that are allocated to the companies covered by the EU Emission Trading Scheme. Each one represents the right to emit one tonne of carbon dioxide. There are a fixed number of EUAs available to industries covered by the EU Emission Trading Scheme. EUAs are tradable. Carbon Retirement buys and retires EUAs.

For more information visit our GMO website.

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