The reserve 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 reserve account as of January 2019. 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 Credits have yet to be withdrawn from the reserve account.