The registry is managed by Riverse to track and securely manage carbon credits as digital assets along their life cycle.
Credit pools are defined as a number of credits with the same project, mechanism and vintage year. Credit pools are bundled during transactions.
A project is uniquely described on the registry by:
- project ID
- project name
- name of the project developer
- type of mechanism (avoidance or removal)
- crediting period
Credits are uniquely described on the registry by:
- unique identifier
- project ID
- vintage year (year of verification)
Type of mechanisms are defined on the registry as:
- “removal”: for all removal credits (as defined in Types of credits issued)
- “avoidance”: for all avoidance credits (as defined in Types of credits issued)
Credits can have different statuses on the registry, as shown in the workflow diagram in the following: Validation, Verification and Certification process.
Pre-credits & Pre-purchase agreements
Pre-credits (or certified credits) are issued upon certification (after Riverse pre-certification and third party validation) for the projected volume of emission avoidance/removal over the project’s lifetime. They are conservatively calculated.
Pre-credits are only used to track pre-purchase agreements for buyers and their property rights can not be transferred to the buyer until the mitigation activity occurs and they are verified (hence become credits).
For pre-purchase agreements, the provision pool will not be used to replace pre-credits for which the verification was not possible.
The crediting period is defined during the certification process, with a maximum of 5 years. During this period, KII are monitored as the mitigation activity occurs and is verified on a regular basis (usually every 3-6 months). For verification, project developers upload their sources to the Riverse platform to prove the KII were delivered.
Once proofread, pre-credits associated with the given period either change status into “verified” credits or are canceled.
During the verification phase, we can face 3 situations: exact estimation, over-estimation and under-estimation.
Note that the actual portion of credits going to the provision pool may vary by project.
When a buyer purchases verified credits from the registry, the emission reductions are guaranteed. The program secures a 10% provision pool of verified credits to act as an insurance/buffer in the case of non-delivered or over-estimated credits. These credits cannot be traded, and are to be used to cover the risk of unforeseen losses in carbon stocks in the project portfolio. These credits can replace any previously-sold credits in the event of a reversal due to fire, pests, drought, or other events, which can affect the permanence of the carbon sequestration inherent in the sold carbon credits.