This market is regulated through international, regional, and sub-national carbon reduction projects, such as the Clean Development Mechanism under the Kyoto Protocol, the European Union Emissions Trading Scheme (EU-ETS), and the California Carbon credit market.
Each ton of CO2 is measured in carbon credits or CER (certified emissions reduction). These credits or CERs are generated at the project implementation stage, And the deduction is issued after the deposit.
Projects wishing to offer CER in the market must have their emissions reduction verified by a designated operational entity (validator and verifier) and registered by the CDM Executive Board to achieve actual and measurable emissions reduction.
How does the voluntary carbon credit market work?
The primary purpose of obtaining Verified Emission Reduction (VER) credit is to neutralize the carbon footprint inspired mainly by Corporate Social Responsibility (CSR) and public relations.
Other factors include certification, reputation, and consideration of environmental and social benefits.
Companies and individuals can acquire or purchase carbon credits directly from projects, companies, or carbon funds. However, as in regulated markets, all VERs must be verified by an independent third party and developed and calculated by existing VER standards.
The main difference is that a VER (voluntary market), unlike CERs (mandatory market), cannot be used to achieve obligations under the Kyoto Protocol compliance system. However, a CER can be accepted by entities willing to offset their emissions voluntarily.
ClimateTrade operates in both the voluntary offset market and the compulsory market. We have a broad portfolio of projects with all kinds of credits and a professional team with extensive experience in this field.