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CDM is the only Kyoto Protocol mechanism under which credits can be generated starting from year
2000, prior to the Kyoto Protocol First Commitment Period (2008-2012). This is often referred to as
“retroactive crediting” (See Section 3.4 for details).
1.2 Key Concepts of CDM
1.2.1 Baseline
Baseline is defined as “the scenario that reasonably represents the anthropogenic emissions by
sources of greenhouse gases that would occur in the absence of the proposed project activity” [CDM
Modalities and Procedures (CDM M&P) 2 , para. 44].
1.2.2 Additionality
The concept of “additionality” is closely related to
that of “baseline”, and has to be paid particular
attention to when setting up a baseline scenario
and developing a methodology. It is defined
in the CDM M&P that “[A] CDM project activity
is additional if anthropogenic emissions of
greenhouse gases by sources are reduced below
those that would have occurred in the absence of
the registered CDM project activity” [CDM M&P,
para. 43].
GHG
emissions
Baseline emissions
Emission
reduction
Project emissions
year
Figure 1-2 Concepts of baseline and additionality
The EB at its 10th meeting (EB10) provided four options as examples of tools that may be used to
demonstrate that a project is additional and therefore not the baseline scenario including, among
others:
(a) A flow-chart or series of questions that lead to a narrowing of potential baseline options; and/
or
(b) A qualitative or quantitative assessment of different potential options and an indication of
why the non-project option is more likely; and/or
(c) A qualitative or quantitative assessment of one or more barriers facing the proposed project
activity (such as those laid out for Small-Scale CDM projects); and/or
(d) An indication that the project type is not common practice (e.g. occurs in less than [