Reference Scenario or Baseline
The reference scenario for a project shows the greenhouse gas emissions (GES) that would have been emitted in the absence of any proposed action. The reductions of emissions are calculated on the difference between the reference scenario and the actual emissions of the project.
Schéma de l'additionnalité d'un projet
The reference scenario is directly connected to the criteria of additionality as a project is said to be "additional» if the resulting greenhouse gas emissions are lower than they would have been without the project.
Methodology
The methodology sets a framework for the calculation of the reduction in greenhouse gas emissions. It details the different formulas to be used and the follow-up on reductions in emissions throughout the duration of the project. The project holder (in the sense of the developer of the project) can:
- Either develop his own methodologies and eventually have them approved by the Executive Council of CDM (Clean Development Mechanism),
- Or apply existing and applicable methodologies to his project.
Today, there are more than a hundred methodologies approved by the Executive Council of CDM They can be categorized according to large or small scale projects. This last category has been created following criticism of the complexity of CDM. Its objective is to simplify the initial procedures which were judged to be too heavy and prohibitive for small scale projects. Generally, it is well suited to development projects implemented by NGOs.
The methodology contains basic instructions related to the project concept in terms of the reference scenario, limits, leakages and follow-up. Whatever the methodology, the calculation always follows these main lines :
- The definition of the "project limits";
- Calculation of emissions depending on the reference scenario;
- Calculation of emissions generated by the project;
- Calculation of the reduction of emissions that the project will allow;
- Demonstration of the "additionality" of the project.
Find all the approved methodologies on the site of UNFCCC : http://cdm.unfccc.int/methodologies/PAmethodologies/approved
On the voluntary market, methodologies following quality standards or norms (Voluntary Carbon Standard - VCS, Gold Standard…) are mostly based on existing methodologies approved by the Executive Council of CDM. Specifically, they show clearly the projects' contribution to combating climate change and to sustainable development in the host country. Generally, they guarantee a low negative impact on the socio-economic development of the local population.
>PDF on quality standards
PDD - Project Design Document
Information detailing how projects will conform to the methodology are compiled in the Project Design Document - PDD. The PDD is a technical description of the project that will serve as a basis for the competent auditing authorities.
A PDD generally contains :
- A project description. Title of the project, its technical description, a list of participants, its location, the technology to be used. It is also describes the project context, its planning, as well as the difficulties encountered.
- Methodology for the Reference Scenario.
- Methodology to Evaluate Additionality. In order to demonstrate "additionality" a project has to prove that its activities are not included in the reference scenario. That is to say that greenhouse gas savings would not have been achieved without the implementation of the project (environmental additionality).
- Monitoring Plan. It details the methods for monitoring the project once it is operative, in order to verify that the real performance of GHG reduction is in line with the estimates.
- Period of Accountability. The period during which the reductions in emissions generated by the project are taken into account for generating carbon credits.
- Estimation of GHG Emissions at Source
- Environmental and Social Impact.
