Projects under the project type of reduction, absorption and removal of greenhouse gases from the forestry and agriculture sectors, excluding methane and nitrous oxide reduction activities from agriculture, are subject to non-permanence risk, which can be caused by project mismanagement, change of land ownership, wildfires, pest outbreaks or other natural disasters. In addition, Some projects under the project type of capture, storage, and/or utilization of certain greenhouse gases are also subject to the risk of non-permanence. Project participants of such projects are thus required to prepare Non-permanence Risk Assessment Report and have credits deducted as buffer credits according to the guideline set out by TGO.

Premium T-VER requires project participants to prepare a Non-permanence Assessment Report, as part of the project registration documentation. In addition, a Non-permanence Monitoring Report, must be submitted as part of the documentation for carbon credit issuance. These reports contain the assessment or monitoring result of the non-permanence risk in accordance with the guidelines set by TGO and shall be validated or verified by the Validation and Verification Body (VVB). For projects with a crediting period of less than 45 years, the project participant must prepare and submit a verified Non-permanence Monitoring Report to TGO every 5 years until the full 45-year period has been completed.

Furthermore, TGO shall deduct buffer credits from the carbon credits issued from those types of the project and reserve in the pooled buffer account in the carbon credit registry system of TGO. TGO shall manage the buffer credit account in the carbon credit registry system for compensation of reversal of a project participant in the following cases:
(1) Avoidable incidents which are incidents arising from willful acts or negligence of a participant or other persons causing greenhouse gases emissions reduction or removals of a Premium T-VER project to be net negative compared to the baseline or previous issuances of carbon credits.
(2) Unavoidable incidents which are incidents arising from force majeure causing greenhouse gases emissions reduction or removals of a Premium T-VER project to be net negative compared to the baseline or previous issuances of carbon credits.
Compensation of reversals of carbon credits shall be in accordance with rules and conditions prescribed by the Board of Directors will withhold a portion of the certified carbon credits as buffer credits. These credits will be deposited into a buffer account within the TGO registry system to address potential carbon loss resulting from non-permanence.

Announcement_of_Buffer_credit_management-2568.pdf