We declare a ‘loss event’ when a release of carbon from the farm’s soils occurs. This will need to:

  • be unforeseen in the management plan (i.e. planned cultivation is allowed);
  • be the result of management decisions and not weather events;
  • account for more than 5% of the emission reductions and sequestration achieved by you in the programme at that time.

If a loss event occurs:

  • Farmers will not have to return money already received;
  • Instead, a “buffer” is set up from the first year: 20% of generated certificates are placed in this buffer each year and cannot be sold;
  • In the event of a “loss event”, certificates from the buffer will be used to cover the carbon release;
  • The farmer will have to contribute the same number of certificates to the buffer again in future years before carbon payments resume;
  • If no losses are incurred, after 10 years the certificates in the buffer are sold and farmers will receive their payments.