Buffer Pool
A reserve of carbon credits held back to cover potential reversals in carbon projects.
What is a Buffer Pool?
In carbon crediting programs, especially for nature-based solutions, a buffer pool is a communal reserve of carbon credits set aside by the project developer or standard body to compensate for any unforeseen reversals in carbon storage. These reversals could be due to events like wildfires, disease outbreaks, or accidental deforestation.
Why is a Buffer Pool important?
A buffer pool is important because it addresses the risk of non-permanence in carbon projects, particularly those involving biological sequestration (e.g., forests). By holding back a portion of issued credits, it ensures that if a project loses some of its stored carbon, there are replacement credits available to maintain the overall environmental integrity of the program.
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Frequently asked questions
A percentage of the carbon credits generated by a project is contributed to a centralized buffer pool, rather than being sold. If a reversal event occurs in any project within the program, credits are drawn from the buffer pool to cover the loss.
The required contribution to the buffer pool typically depends on the assessed risk profile of the project, including risks of fire, disease, management failure, and natural disturbances. Higher risk projects contribute a larger percentage.
Buffer pools are most common and critical for nature-based solutions due to their inherent risks of reversal. However, similar risk mitigation mechanisms may exist for other carbon removal technologies to ensure permanence.