ICVCM working group concludes permanence discussions, eyes buffer pool stress tests

The Integrity Council for the Voluntary Carbon Market's (ICVCM) Continuous Improvement Work Program (CIWP) on Permanence (Monitoring and Compensation) has concluded its discussions, focusing on enhancing reversal risk assessment and strengthening buffer pools. The working group identified a need for greater consistency in project-level risk assessment across carbon-crediting programmes, suggesting common minimum risk categories and clearer definitions of avoidable and unavoidable reversals. Participants also explored stress-testing approaches for buffer pools and novel compensation mechanisms like permanence trusts and insurance solutions. The ICVCM is expected to pilot stress-testing approaches to evaluate buffer reserve adequacy against potential loss scenarios.

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