Does the World Bank purchase Verified Emission Reductions (VERs), Certified Emission Reductions (CERs) or EU Allowances (EUAs)?
The Bank will encourage the seller to make an informed decision on whether to sell CERs or VERs based on sufficient understanding on the relative risks and price trade-offs between the two assets. Verified Emission Reductions (VERs) are units of greenhouse gas reductions generated from Clean Development Mechanism (CDM) projects under the Kyoto Protocol, in developing countries and verified by external, UN-accredited third party verifiers. Certified Emission Reductions (CERs) are also project-based but have undergone registration (e.g. by the CDM Executive Board). CERs can be used for compliance with Kyoto Protocol obligations or to meet emissions caps under the European Union Emissions Trading Scheme. The European Union Emissions Trading Scheme (EU ETS) is an EU wide cap and trade emissions trading system, which trades in “EU Allowances” called Emission Reduction Units (EUAs). When the World Bank Carbon Funds purchase Verified Emission Reductions, payment is made regardless of the outc
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