Understanding CDM Methodologies - SuSanA

Baseline
Approaches
The Marrakech Accords define the basic idea of baseline determination,
while they do not provide an operationalization of the additionality
concept 30 . The concept of “baseline” is defined as “scenario that reasonably
represents the anthropogenic emissions by sources of greenhouse gases that
would occur in the absence of the proposed project activity” 31 . Baselines
have to be project-specific 32 and defined in a way that CERs cannot be
earned for decreases in activity levels outside the project activity or due to
force majeure 33 . Relevant national policies and circumstances 34 and current
practices in the host country or region 35 as well as least cost technology for
the project type 36 are to be taken into account.
Three principal approaches are available for defining a baseline methodology:
• Existing actual or historical emissions, as applicable 37
• Emissions from a technology that represents an economically attractive
course of action, taking into account barriers to investment 38
• The average emissions of similar project activities undertaken in the
previous five years, in similar social, economic, environmental and
technological circumstances, and whose performance is among the top 20
per cent of their category 39
Section 4.1.1 describes how these approaches have been incorporated into
baseline methodologies.
Project Boundary
Leakage
Principles
for Baseline
Determination
and Monitoring:
The concept of project boundary encompasses “all anthropogenic
emissions by sources of greenhouse gases under the control of the project
participants that are significant and reasonably attributable to the CDM
project” 40 . On this basis, leakage is defined as “net change of anthropogenic
emissions by sources of greenhouse gases which occurs outside the project
boundary, and which is measurable and attributable to the CDM project” 41 .
Leakage shall be deducted from the emission reductions calculated against
the baseline 42 .
30
Decision 3/CMP.1, para 43 just repeats the additionality principle of Article 12, 5 (c) of the Kyoto Protocol.
31
Decision 3/CMP.1, para 44. This is derived from the principle of “real…measurable…long-term” reductions in
Article 12, 5 (b) of the Kyoto Protocol.
32
Decision 3/CMP.1, para 45 (c)
33
Decision 3/CMP.1, para 47
34
Decision 3/CMP.1, para 45 (e)
35
Appendix C to decision 3/CMP.1 “Terms of reference for establishing guidelines on baselines and monitoring
methodologies”, para (c) (i)
36
Ibid., para (c) (ii)
37
Decision 3/CMP.1, para 48 (a)
38
Decision 3/CMP.1, para 48 (b)
39
Decision 3/CMP.1, para 48 (c)
40
Decision 3/CMP.1, para 52
41
Decision 3/CMP.1, para 51
42
Decision 3/CMP.1, para 50
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