We place a percentage of the carbon credits into a buffer account. The buffer is normally 20% of the generated carbon certificates per monitoring cycle. In individual cases, a risk premium of up to 10% may be added. Farm buffer certificates are pooled and serve as a collective risk mitigation mechanism.
We use the farm buffer certificates to cover “loss events”, e.g. unforeseen project-related risks. This includes crop yield variability, implementation of practices that reverse carbon dioxide removals, climate events, pest and disease outbreaks, loss of access to parts of the land, etc.
These buffer certificates are converted to normal certificates and sold annually during a 5-year retention period, following the crediting period. The risk premium can be applied if your lease duration is less than
10 years, thus accounting for the risk of losing the sequestered carbon
More details on buffer certificates can be found in our Terms & Conditions.