6.6 Risk of Reversal

corresponds to 2.5.10 NCS

The legal framework for forest management in Europe generally includes managing the forest so that it can continuously and fully perform its functions.

Measures against Risk of Loss

Two fundamental measures are the following:

• Forest conversion from vulnerable tree species to more climate-adapted tree species.

• Particularly conservative project assumptions.

The provisions of the NCS Chap. apply. 5.6.2 to ensure the integrity of the project register.

If there is a risk that the stock falls below that for which certificates have been sold (e.g., due to a damaging event), the project owner immediately reports this to the registry organisation. The sale of certificates from the project is halted.

In the event of an actual loss of biomass below the value for which VER had been sold, the relevant quantities of VER in the project register are cancelled.

Compensation in the project register can occur in one of the following ways:

• The generation of further VER is halted until the stock has reached the level present before the damaging event.

• Project owners and programme organisations can bridge such pauses by creating an internal non-sold buffer of VER.

• The project duration is extended, should there be a deficit in the project registry at the end of the regular project period, by the duration required to offset the deficit through continued sink action. Monitoring is extended accordingly.

• Project deficits can also be compensated by the programme (programme risk buffer) or by other measures while maintaining climate integrity.

The mentioned measures are confirmed by monitoring.