Additionality
The concept that a carbon project's emission reductions or removals would not have occurred without the incentive of carbon finance.
What is Additionality?
Additionality is a core principle in carbon markets, ensuring that the greenhouse gas emission reductions or removals achieved by a project are 'additional' to what would have happened in the absence of the carbon finance mechanism. In other words, if a project would have happened anyway (e.g., due to existing regulations or profitability), it is not considered additional.
Why is Additionality important?
Additionality is critical for the environmental integrity and credibility of carbon credits. Without additionality, carbon credits would be issued for activities that offer no real climate benefit beyond business-as-usual scenarios. This could lead to a 'race to the bottom' where easily achievable, non-additional projects flood the market, undermining the effectiveness of carbon finance.
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Frequently asked questions
Additionality is typically assessed against a 'baseline scenario,' which represents the emissions or removals that would have occurred without the project. Project developers must demonstrate that their project overcomes specific barriers (e.g., financial, technological, regulatory) that would prevent its implementation in the absence of carbon finance.
Common tests include investment analysis (proving the project is not financially viable without carbon revenue), barrier analysis (showing the project faces significant non-financial barriers), and common practice analysis (demonstrating the project is not already standard practice).
Yes, a project's additionality can be re-evaluated during its crediting period. Changes in regulations, technology, or market conditions might make an activity no longer additional, even if it initially was.