Units & Issuance

RESTORATION UNITS 

1. General Principles

   1. The unit of measurement and issuance is a metric tonne of Carbon Dioxide equivalent (tCO2e). Each Restoration Unit represents 1tCO2e. 
   2. Restoration Units are split into two categories: 
      1. Projected Restoration Units (PRUs)
      2. Verified Restoration Units (VRUs)
   3. Only Verified Restoration Units can be equivalent to carbon credits, as they represent the independently verified removal of 1tCO₂e from the atmosphere.
   4. Restoration Units systematically incorporate impacts on Livelihoods and Ecological Recovery. Restoration Units are not biodiversity credits.
   5. Restoration Units are registered in the Account Holders and Buffer Pool accounts in the ERS Registry.

💡 Refer to the Buffer Pool section for more details on the Buffer Pool account.

2. Projected Restoration Units (PRUs)

   1. Concept
      1. PRUs represent a tCO2e that is expected to be sequestered during the Project’s crediting period. 
      2. PRUs cannot be retired. PRUs are not considered carbon credits but can be sold, traded and used as collateral.
   2. Issuance
      1. ERS issues the total amount of a Project’s PRUs following Validation.
      2. To calculate PRUs, ERS estimates the total Project sequestration potential according to the applicable Quantification Methodology.
   3. Allocation
      1. Of the total issued PRUs, 20% rounded up are transferred to the Buffer Pool, and 80% rounded down are transferred to the Developer’s account in the ERS Registry.

      2. Developers are responsible for PRU allocation among Buyers. 

         Verified Restoration Units (VRUs) 

   4. Concept
      1. VRUs represent a verified net removal of 1tCO2e. 
      2. VRUs are assigned the year of net GHG removal as vintage.  
      3. VRUs are considered as carbon credits and can be retired.
   5. Issuance
      1. ERS issues VRUs as a result of PRU conversion after a successful Verification.
      2. VRU issuance is based on the net GHG removals calculation as per the applicable Quantification Methodology.
      3. PRUs will convert into VRUs in a sequential manner, with each PRU having a unique serial number determining its conversion order.
   6. Allocation.
      1. All accounts are attributed VRUs according to their PRUs serial number ownership, including the Buffer Pool. 

📌 Project “Jaguar” has sequestered 10,000 tCO2e from its start date to year 4 of the crediting period, as calculated by ERS. The net GHG removals achieved during the Verification Cycle are 10,000 tCO2e. The VVB mandated to perform Verification has verified the calculations and submitted the Verification report on the Registry.

ERS will proceed with converting the first 2,000 PRUs in the Buffer Account. Subsequently, ERS will convert the first 8,000 serialised PRUs in the Account Holders’s accounts into VRUs.

UNIT RULES 

1. Unit Transfer 

   1. All Restoration Units (PRUs and VRUs) can be traded as agreed between buyer and seller, subject to the Registry’s Terms & Conditions and ERS’ Anti-Fraud Policy.

      Unit Retirements 

   2. Every retired Restoration Unit must publicly disclose a reason for retirement. Accepted reasons are:
      1. Compensation; 
      2. Contribution. 
   3. Every beneficiary entity must be publicly disclosed in the ERS Registry.

   4. Refer to the Retirement section of the Registry Procedures and the Avoiding Double Claiming Procedure for more details.

      Unit Claims

   5. VRUs represent a direct contribution to restoring natural carbon sinks and to achieving global neutrality. Carbon credits, including ERS VRUs, should be used in addition to the mitigation of value-chain emissions or to neutralise residual emissions (i.e. the final 10% or less).
   6. VRUs can only be claimed by organisations that are implementing an emission reduction trajectory following the 1.5 and 2°C pathways according to the Paris Agreement.
   7. Failure to comply with the above requirements may result in units being considered invalid.

OVER/UNDERPERFORMANCE

1. Underperformance

   1. Underperformance can only be accounted for at the end of the crediting period, if the Project's verified carbon sequestration falls below the initial projections. If such a situation occurs, PRUs will remain unconverted and the Secretariat will proceed with their cancellation. 

      Overperformance

   2. Overperformance occurs when the Project has successfully converted all PRUs that were initially issued at the Project certification.
   3. Overperformance leads to the issuance of additional VRUs in the Developer’s Registry account. 

BUFFER POOL

1. Concept

   1. The Buffer Pool is an insurance pool common to all ERS-certified Projects ensuring the integrity of ERS’s Restoration Units against the impacts of reversals.
   2. The Buffer Pool ensures full compensation for all reversal events throughout the Project’s crediting period. 

   3. Restoration Units in the Buffer Pool can never be sold. Restoration Units are held in a dedicated account on the ERS Registry and administered by the ERS Secretariat.

      Composition

   4. The Buffer Pool is composed exclusively of Restoration Units.

   5. Twenty per cent (20%) of every Project’s unit issuance is allocated to ERS's Buffer Pool.

      Transparency

   6. Information on the Buffer Pool supply, including origin of Restoration Units (e.g., activity type and vintage), is made publicly available in the ERS Registry.

COMPENSATION

💡 For details regarding loss events and reversals monitoring, reporting and accounting, refer to the Reversal Procedure in the Permanence section at the Methodology level.

1. Avoidable reversals

   1. If the reversal is categorised as avoidable:
      1. ERS Secretariat must cancel VRUs in the Buffer Pool in an amount equal to the GHG Net Loss during the Verification Cycle, to compensate for the reversal.  
      2. The Developer must deposit VRUs in the Buffer Pool in an amount equal to the GHG Net Loss during the Verification Cycle.  
         • Any GHG Net Loss must be compensated using VRUs from the Buffer Pool marked with the same tag (ICROA, CORSIA, ICVCM). 
      3. ERS Secretariat will not convert any PRUs for the given Verification Cycle.

💡 The VRUs can only be sourced from unsold units of the Developer's account. These units can also be drawn from another ERS Project managed by the Developer, if applicable.

2. Unavoidable reversals

   1. If the reversal is categorised as unavoidable:
      1. ERS must cancel VRUs in the Buffer Pool in an amount equal to the GHG Net Loss during the Verification Cycle, to compensate for the reversal.  
      2. ERS Secretariat will not convert any PRUs for the given Verification Cycle.
   2. Any GHG Net Loss must be compensated using VRUs from the Buffer Pool marked with the same tag (e.g. ICROA, CORSIA, ICVCM).

📌 Project “Leaf” has issued 100,000 Units from its start date to year 10 of the crediting period. 20% of these Units (20,000) have been set for ERS’ Buffer Pool. 

In year 11, a hurricane destroys a large part of the Project Area. ERS identifies it through remote sensing monitoring and requires the loss event to be reported by the Developer in the next Annual Report.

Following the subsequent Project Verification, ERS calculates the net GHG benefit achieved during the Verification Cycle. The result is (-30,000), which leads to the cancellation of 30,000 Units from the Buffer Pool. The loss event is categorised as an unavoidable reversal. No PRU conversion will be made for this Verification Cycle.