Carbon Credits and the Idea of Addionalty

The concept of additionality addresses the question of whether the project would have happened anyway, even in the absence of revenue from carbon credits.


Only carbon credits from projects that are "additional to" the business-as-usual scenario represent a net environmental benefit.

Carbon projects that yield strong financial returns:

even in the absence of revenue from carbon credits;
or that are compelled by regulations;
or that represent common practice in an industry
are usually not considered additional, although a full determination of additionality requires specialist review.

It is generally agreed that voluntary carbon offset projects must also prove additionality in order to ensure the legitimacy of the environmental stewardship claims resulting from the retirement of the carbon credit (offset).
According the World Resources Institute/World Business Council for Sustainable Development (WRI/WBCSD) : "GHG emission trading programs operate by capping the emissions of a fixed number of individual facilities or sources.

Under these programs, tradable 'offset credits' are issued for project-based GHG reductions that occur at sources not covered by the program.

Each offset credit allows facilities whose emissions are capped to emit more, in direct proportion to the GHG reductions represented by the credit.
The idea is to achieve a zero net increase in GHG emissions, because each ton of increased emissions is 'offset' by project-based GHG reductions.
The difficulty is that many projects that reduce GHG emissions (relative to historical levels) would happen regardless of the existence of a GHG program and without any concern for climate change mitigation.

If a project 'would have happened anyway,' then issuing offset credits for its GHG reductions will actually allow a positive net increase in GHG emissions, undermining the emissions target of the GHG program.
Additionality is thus critical to the success and integrity of GHG programs that recognize project-based GHG reductions."

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