How does the VCS Program handle the issues of permanence and market leakage for AFOLU projects?

All AFOLU projects are required to conduct non-permanence risk assessments and Reduced Emissions from Deforestation and Degradation (REDD) and Improved Forest Management (IFM) projects are required to conduct market leakage assessments. The outcomes are validated by a VCS Validator (and are subject to the VCS Methodology Approval Process in some circumstances, as described in the AFOLU Requirements) and provide the basis upon which buffer credits are set aside. Buffer credits are non-tradable and are maintained in an AFOLU Pooled Buffer Account to cover the risk of unforeseen losses in carbon stocks across the AFOLU project portfolio. Further details on the process for assignment, release and cancellation of buffer credits are available in the guidance document Registration and Issuance Process.