By Jessica Sier 



  Volkswagen AG will compensate for some carbon-dioxide emissions from its supply chain through a partnership with Permian Global, the company said on Thursday. 


  Permian Global is a U.K.-based investment firm that produces and sells verified carbon credits through large conservation projects. 


  The two organizations have signed a joint development agreement to create climate protection projects in the second half of 2020 that focus on restoration of endangered forests. 


  "Following successful verification, the avoided deforestation and restoration of endangered forests will lock away carbon and deliver carbon credits that will be used to compensate for CO2 emissions from the supply chain," said Volkswagen in a statement. 


  "They will also compensate for the production and logistics of vehicles, as long as these CO2 emissions cannot be avoided and renewable energies cannot be used currently." 


  Under the terms of the agreement, the two companies will initially develop projects on a total area of one million hectares. 


  All projects will be independently audited and certified using the Verified Carbon Standard  and the Climate Community and Biodiversity Standard, or Gold Standard. 


  Write to Jessica Sier at jessica.sier@wsj.com