account serves as an insurance mechanism for the overall Conservation Credit
System (CCS) and ensures there are always more credits than debits in the CCS
in the event of credit project failure due to intentional or unintentional
reversals. A percentage of credits generated by each credit project are
transferred into the reserve account at the time that credits are transferred
to a Credit Buyer’s account. Credits in the reserve account may be used to
temporarily cover invalidated credits until invalided credits are replaced
through corrective actions and/or using financial assurance funds. The process
of generating and using reserve credits is described in the figure below.
The table below contains deposits, withdrawals and balance of the current reserve account. A positive balance (column 4) confirms there are more credits than debits in the CCS. Credits have yet to be withdrawn from the reserve account.