The rebound effect
Describes the emissions resulting from the increase in demand for the services provided by the project.
Example : The reduction of the biomass needs of a household (from the improved energy efficiency of cooking oven) reduces their expenses on energy. If this reduction is significant, it can result in an increase of demand in other areas and so indirectly increase GHG emissions.
Carbon Leakages
This term designates the emissions leakages that are caused outside the boundaries of the project, but which are still attributable to the project.
Example : An important energy efficiency project can lead to a reduction in the price of electricity, leading to an increase in electricity consumption and so to greenhouse gas emissions.
These leakages are very difficult to determine and to accurately quantify. But at least, they have to be identified and uncertainties about the actual calculations of the reduction of emissions by the project have to be mentioned. So the project holders must consider two types of emissions:
- The emissions caused by the project activity, the sources of which are within the parameters of project.
- The emissions caused by the project activity, but the sources of which are outside its parameters.
