Accounting & Integrity
Permanence liability
The allocation of responsibility if stored carbon is later released, spanning buffers, replacement and contracts.
Someone must bear the consequence of reversal. Mechanisms include buffer pools that withhold a share of issued credits, contractual replacement obligations, and insurance arrangements.
The design question is duration. A liability that expires while the risk does not is a transferred problem rather than a solved one, which is why long monitoring horizons are central to credible removal claims.
Frequently asked questions
Who pays when a buffer is insufficient?
Depending on the scheme, the project, the standard's reserve or the buyer under contractual terms.
Do avoidance credits carry permanence liability?
Indirectly. The stored carbon must remain stored for the credited benefit to be real.