How does the risk of ex-post and ex-ante credits differ?
In contrast to ex-post certificates the risk of ex-ante credits have the additional risk from the ‘Time of delivery’. This becomes clear when assessing these two formulas: Ex-post risk = Risk * Long-term permanence Ex-ante risk = Risk * (Time of delivery + Long-term permanence) In both formulas, the key parameter is the ‘Long-term permanence’. Therefore the longer one wants the carbon to be stored, the the smaller the difference in the risk levels between the two types of credits becomes. Eventually, when the carbon should be stored permanently, the risks are equal. • Additionality – Carbon certificates can only be generated by a project when evidence is given that only the sale of these certificates has made the implementation of the project feasible. In contrast to technical climate projects (such as energy saving light-bulbs or solar cooking stoves), forestation projects have often a much longer time span over in which the carbon fixation occurs. Taking into account that VCS AFOLU o
