Project C: We Have The Power

Guidance for Developing a Baseline

The baseline provides a clear understanding of the greenhouse gas emissions that would occur without an offset project being put into place. Often referred to as the “business as usual” case, a baseline is the existing or projected greenhouse gas emissions in the absence of the project. The quantity of offsets generated by a project is the difference between the “with-project” emissions baseline, and the “without-project” emissions baseline.

The baseline methodology must explain the most likely “without-project” scenario. In an effort to reduce the project preparation costs for Phase I project applicants, the Initiative does not require an extensive baseline study be performed for each project. Instead, the Initiative requires project applicants to develop their own project baseline using best available data with the understanding there may be a degree of uncertainty involved. Final baseline development takes place in the later stages of the project selection process.

Information that can help support the presentation of a project baseline:

• Experiences from similar projects. For example, if a particular inefficient technology is the industry standard it can be used as the baseline case.
• Studies or surveys that demonstrate that the project differs from prevailing practice.
• Communications or minutes from meetings from the developer indicating that the baseline case is the most likely scenario for the project.
• Independent expert assessments.
• Clearly stated references for all data and assumptions used in the baseline

Other Resources on Additionality and Baselines

• The Greenhouse Gas Protocol
  This collaboration between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) has created a variety of resources for project developers.
  • The Project Quantification Standard (.pdf) is the result of the GHG Protocol’s collaborative effort to develop standards for carbon offset projects. This Document contains guidance on how to perform a barriers test as well as resources for baseline development and carbon offset quantification.
• Prototype Carbon Fund
  The World Bank’s Prototype Carbon Fund is one of the world’s largest buyers of carbon offsets. The Project section of their Website contains information on the carbon offset standards and measures used for each of their projects.
• Clean Development Mechanism (CDM)
  Part of the Kyoto Protocol, this body reviews and approves project based offsets located in developing countries.
  • This link contains project-specific information on baselines and monitoring and verification.
  • The CDM website also has a helpful guide (.pdf) on how to assess additionality (note: The Initiative does not require a project’s additionality presentation to be as detailed as is required in this document).
• OECD Framework for Baseline Development
  This report (.pdf) by the Organization of Economic Development (OECD) describes the main approaches and issues involved in developing a baseline.
• Glossary of Common Offset Terms