Two mechanism exits in our process to ensure the issued credits are real. The buffer is used during the certification process, and additionally the provision is taken from all pool of verified credits.
Some projects may be asked to eliminate a fraction of their estimated carbon credits to create a buffer against carbon credit overestimation. This may occur when high uncertainty is identified, for example, in the baseline scenario choice or the project’s measured data. Credits that are eliminated as a buffer are not issued and will not appear on the registry. This buffer may vary from 0% to 15% of estimated credits.
Projects must fill out the Risk Evaluation Tool in the DPD to determine the amount of credits added to their buffer. Risk is based on criteria such as permanence, reality, leakage, and rebound effects (detailed below).
Credits from each project are transferred to the provision pool, where they act as an insurance against the non-delivery of certified credits. This allows all projects and credit purchasers to share risk and benefit from safeguards against credit non-delivery.
Each project automatically deposits 10% of its certified credits to the provision pool. During the pre-certification process, the project may be asked to contribute extra credits to the provision pool if it has high risks of violating criteria such as additionality, permanence, leakage, and rebound effects. This provision volume is estimated at certification and regularly reviewed during ongoing verification.
Credits are withdrawn and transferred from this pool if certified credits are reversed or canceled (see details in the Cancelation section). This way the number of credits issued by Riverse remains the same, and only the number of credits in the provision pool may be disrupted.
If credits from the provision pool replace credits that have already been claimed, they are given to the credit purchaser, regardless of any price difference. If they replace unclaimed credits on the registry, they are placed on the registry at their original price