Non-permanence involves the risk that emission removals by sinks are reversed, because forests are cut down or destroyed by natural disaster. Therefore, the CDM rules require project participants to adopt an approach to address the risk of non-permanence.
Participants must identify whether they have selected the lCER or tCER approach to dealing with non-permanence:
In accordance with paragraph 38 and section K of the CDM A/R modalities and procedures, please specify which of the following approaches to address non-permanence has been selected:
- Issuance of tCERs
- Issuance of lCERs (EB 35, Annex 21).
The modalities and procedures for A/R projects establish these two approaches as methods to deal with the potential non-permanence of emission removals by sinks:
The project participants shall select one of the following approaches to addressing non-permanence of an afforestation or reforestation project activity under the CDM:
- Issuance of tCERs for the net anthropogenic greenhouse gas removals by sinks achieved by the project activity since the project start date in accordance with paragraphs 41-44 below
- Issuance of lCERs for the net anthropogenic greenhouse gas removals by sinks achieved by the project activity during each verification period, in accordance with paragraphs 45-50 below (5/CMP.1, Annex, paragraph 38)
The issuance of temporary certified emission reductions (tCERs) deals with non-permanence by providing for the expiry of the credits (and their compulsory replacement) at the end of the commitment period in which they were issued. The issuance of long-term certified emission reductions (lCERs) deals with non-permanence by providing for the expiry of the credits at the end of the crediting period in which they were issued.
Both approaches insure against non-permanence by making sure that credits issued to these projects are replaced by other credits after a period of time.
Once selected, the approach to non-permanence selected by the project participants remains fixed for the entire crediting period, including any renewals of the crediting period:
The approach chosen to address non-permanence shall remain fixed for the crediting period including any renewals (5/CMP.1, Annex, paragraph 39).