Appendix A International and domestic baseline and credit schemes Scheme Description Eligibility and coverage setting Farming Initiative (CFI) The Carbon Farming Initiative (CFI) is an Australian crediting scheme that began in December 2011. It is a voluntary scheme that provides incentives to landowners for activities to sequester carbon, and avoid or reduce greenhouse gas emissions. The CFI is created under the Carbon Credits (Carbon Farming Initiative) Act 2011 and is administered by the Clean Energy Regulator. The CFI is also supported by the Domestic Offsets Integrity Committee (DOIC)—an The CFI covers sequestration and emissions reductions from some of the sources that are not covered by the carbon pricing mechanism, namely from agriculture, legacy waste (emissions from waste deposited prior to the introduction of the carbon pricing mechanism) and land use, land use change and forestry (LULUCF). Participation is open to individuals; sole traders; businesses; local, state and territory government bodies; and trusts. Participants must be registered as a ‘recognised Additionality is tested at both the project level and methodology approval stages of the process. At the activity level, a regulatory test is applied to ensure that the activity is not already required by law. The activity type must also be included on the ‘positive list’, specified in the Carbon Credits (Carbon Farming Initiative) Regulations 2011. Positive list of activities are considered to be Each CFI project must use an approved methodology that sets out the baseline against which abatement is measured. Identifying the most likely baseline scenario will depend upon the proposed activity. For example, baselines can be determined on an absolute or emissions intensity basis, all CFI projects must reflect a reduction in absolute emissions levels. All baselines in the CFI are specified at the project activity all CFI projects adopt static baselines, new
independent expert committee that assess proposals for methodologies and advises the relevant minister. The scheme was established to complement Australia’s carbon pricing mechanism and thus includes emissions from a number of sectors not covered under that mechanism. Projects that either reduce emissions or sequester carbon are approved in accordance with a methodology, establishes rules for undertaking and monitoring the project and generating credits. Credits are known as Australian Carbon Credit Units offsets entity’ and be assessed as ‘fit and proper’ prior to participation in the scheme. Section 27 of the Carbon Credits (Carbon Farming Initiative) Act outlines the criteria for project eligibility. To be eligible, the regulator must be satisfied that the project: is undertaken in Australia uses an approved passes the test has an applicant who is the project proponent and is a offsets entity’ meets the for additional to and are therefore considered to generate genuine, additional abatement. A negative-list excludes activities due to the existence of adverse impacts on employment, water, local community etc. The Minister for the Environment makes decisions on activities on the positive list, and considers advice from both the Department of Environment and the DOIC. Each methodology also provides instructions for determining a baseline that represents what information such as emissions factor data can be incorporated into the baseline methodology and apply when projects come up for renewal. Baselines are generally static and can only be reviewed at the start of a new crediting period unless approved by the project operator. Crediting periods are generally seven years but reforestation has 15 years, and native forest protection projects have a 20-year crediting period. A number of methodologies have been developed by the department; for example, piggery methodologies,
(less than one per cent). Sources: Climate Change and Energy Efficiency 2013; Department of the Environment 2014a, 2014b. Scheme Description Eligibility and coverage Additionality Baseline setting South Wales Greenhouse Gas Reduction Scheme (GGAS) The Greenhouse Gas Reduction Scheme (GGAS) was a baseline and credit scheme established in New South Wales, Australia, in 2003. The Australian Capital Territory introduced GGAS in 2005. The scheme was terminated in 2012 when the national carbon pricing mechanism commenced. GGAS was a penalty scheme that allowed offsets. Its For the liability component of GGAS, benchmark participants were firms and other entities that were either captured or volunteered into the scheme. Benchmark targets were imposed on all electricity retailers and market buyers that took electricity directly from the grid. Some large consumers and state projects (over 100 MW per year) could opt in to the scheme for a variety of reasons, such as boosting environmental profiles or meeting internal energy efficiency targets. For the offset component of GGAS, only accredited Additionality was tested at the eligibility and methodology GGAS specified that accredited projects should be: project reduced or offset greenhouse gas emissions from the electricity sector project exceeded any statutory requirements under other legislative or mandatory requirements in NSW. In practice, this meant that credits were given where current greenhouse performance improved below prior practice and business-as-usual or, in some cases, The penalty baseline for the liability component was expressed as an intensity of carbon dioxide equivalent per capita. This was a benchmark target and was set in legislation. The initial level was set at 8.65 tonnes per capita, which reduced to 7.27 tonnes in 2007 and was set to remain at this level until 2021. A compliance rule converted electricity sector benchmarks into individual annual benchmarks. Each benchmark participant was allocated a based
objective was twofold: to reduce GHG with the and use of to develop and reduction activities to offset the of gas For the penalty component, GGAS legislation imposed a mandatory benchmark target for per capita GHG emissions reductions to 2021 on electricity Abatement Certificate Providers could undertake projects. Eligibility for the four offset activities was specified in their respective rules (methodologies): power a range of different power generation activities (in NSW and interstate). demand-side actions taken on the customer side of an electricity meter (i.e., the ‘demand side’). large electricity users—for the abatement of on-site greenhouse gas emissions (from industrial processes) not directly related to the consumption of electricity. current industry practice. For example, under the carbon sequestration methodology, land for forestry activities must be on ‘Eligible Land’. Any additional sequestration is deemed beyond business-as-usual provided it is undertaken in accordance with the Carbon Sequestration Estimation Methodology. share of the electricity sector benchmark on the level of their electricity sales as a proportion of the total state electricity demand. For the offsets component, a variety of baseline methodologies were employed for abatement projects. These were developed by policy makers. There was no scope for submissions for new methodologies, although rules allowed for any policy changes to be made via Ministerial sign-off rather than Parliamentary approval. For power generation abatement projects, emissions intensity was required to be lower than cost
retailers and certain other parties in NSW and the ACT. These parties were referred to as ‘benchmark participants’. Benchmark participants (liable entities) were required to reduce per capita GHG emissions to the benchmark level. If participants could not meet the benchmark, they could surrender offsetting ‘abatement certificates’ against their liability. These offset certificates were created by accredited certificate providers for four activities and could be carbon carbon sequestered in eligible forests in NSW. Activities had some restrictions and projects were to be carried out in NSW only, demand-side abatement in NSW or ACT, electricity generation projects in any jurisdiction connected to the national grid no creation of certificates under another GGAS rule or scheme; no reducing electricity consumption by reducing the economic benefit from the use of the electricity; and activities to reduce losses in electricity transmission or distribution networks were ineligible. Sequestration projects were required to be from average for NSW generation. For projects, emission reductions were measured as the energy inputs from alternative (renewable) electricity changes from baseline energy consumption. For large electricity user projects, three baseline methodologies were provided: a project impact assessment for one-off projects two baseline methods for multiple ongoing activities aimed at reducing the emissions intensity of the plant.
traded to benchmark participants. Each certificate represented one tonne CO2-e. GGAS also allowed benchmark participants to count Renewable Energy Certificates from Australia’s Renewable Energy Target towards their greenhouse gas benchmark. GGAS stimulated a wide range of accredited abatement projects. Together, these projects created 144 million abatement certificates. forestry (afforestation or reforestation). For sequestration projects, the Carbon Sequestration Rule specified the acceptable parameters to be used in estimating carbon sequestration and calculating carbon stock changes. was no scope for methodologies to be developed by third parties. Sources: Electricity Supply Amendment (Greenhouse Gas Emission Reduction) Act 2002 and Regulations 2002; Greenhouse Gas Benchmark Greenhouse Gas Reduction Scheme website; IPART 2012, 2013; New South Wales Government 2011.
The ESS is a market-based penalty scheme and requires electricity retailers to meet individual annual energy savings targets based on their electricity market share in NSW. The retailers and other parties captured in the scheme are referred to as ‘Liable Entities’. Obligations for liable entities under the scheme can be met by surrendering offsetting ‘energy savings certificates’ or by paying a penalty for the shortfall. For 2014, the scheme shortfall penalty rate is set at $25.97 per certificate and is adjusted for inflation annually. The offset certificates can voluntary participants in the scheme and are eligible to create and sell ‘energy savings certificates’ related to energy savings in commercial, residential and industrial sectors. Eligible activities relate to the modification, installation, replacement and removal of end-user equipment for the purposes of improving energy efficiency. Excluded activities include energy generation (i.e., solar or systems), and energy savings that are not linked to the national grid. The offsets scheme allows aggregators to ‘aggregate’ the savings from a number of the baselines measurement methodologies. For instance, when using the Project Impact Assessment method, evidence is required to demonstrate that the energy savings project did not result in a decrease of service levels or output from a site or process. end-user equipment such as lighting and commercial or industrial equipment with more efficient ones. It measures the lifetime (deemed) savings of an energy savings project upfront at the time of project Metered energy use before the activity is implemented (the baseline) with that after the activity. This methodology is based on electricity consumption of a whole facility or discrete part of a facility. Project Impact smaller projects on a facility their impact
be generated by Accredited Certificate Providers (ACPs) that undertake energy savings activities. Demand for ‘energy savings certificates’ from: liable entities who sell the ‘energy savings certificates’ to liable entities the voluntary or individuals interested in managing their carbon footprint. To date, 7.7 million certificates have been created and 3.8 million have been surrendered clients to make it feasible for them and their clients to participate in the ESS. By participating through an aggregator, a business or householder can receive a benefit from the ESS without the compliance obligations. A supplier, installer or service provider can be the aggregator. on overall electricity use is small relative to total site use. It measures energy consumption before and after the project is implemented. Depending on the activity or methodology, a variety of baseline measures can be adopted, including absolute or intensity baselines—using historical or proxies where historical is not available. There is no scope for methodologies to be developed by third parties. The use of a rule allows, however, for any policy changes to be made via Ministerial (rather than parliamentary approval). There is no specified crediting period length, which can
against compliance obligations (as at 7 March 2014). be based on the project specifics and the ESS Rule for the methodology. Sources: IPART 2013b; ESS website; New South Wales Government 2009, 2011; Electricity Supply (General) Regulation 2001. Scheme Description Eligibility and coverage Additionality Baseline setting Development Mechanism (CDM) The Clean Development Mechanism (CDM) is a global baseline and credit scheme used to credit projects. It is established under the United Nations Framework Convention on Climate Change (UNFCCC) Kyoto Protocol and has operated since the beginning of 2005. The CDM has two objectives: to assist non-Annex I Parties to meet goals by hosting projects that Annex CDM projects must be carried out in a I country that has ratified the Kyoto Protocol and the project participant must be approved by the host country. The CDM is open to all sources of emissions reductions except nuclear and projects (other than afforestation and reforestation). Parties can be private and/or public entities. There are differing eligibility requirements for large-scale, small-scale, Additionality is tested at the methodology stage and there is a positive list for some specific activity types. The methodology specifies what additionality test will apply. These have been standardised over the life of the CDM. Large-scale projects must pass a series of tests: a prior consideration test a financial additionality the project would be feasible without the revenue from CDM offsets All CDM baselines are set at the project level. Depending on the project, baselines can be set historical or projected data, using absolute or intensity baselines, and can be specified with reference to a standardised level. Baselines may also be modified to account for future increases in emissions where they are expected to rise above current levels in the host as a suppressed whether
requirements contribute to the UNFCCC’s overall objective to stabilise global of GHGs to assist Annex I Parties (developed) to meet their Kyoto targets at a lower cost. projects are undertaken in developing countries I), which generate credits. Projects are issued Certified Emission Reductions (CER) (offset credits) for each tonne of CO2-e they abate. CERs can be purchased by I countries to meet their Kyoto targets. As of 31 January 2014, there were 7,426 registered projects, which have had forestry and PoA projects. The eligibility requirements for large-scale projects are: the country hosting the project has met the participation requirements stakeholders have been consulted the and impacts of the project have been considered emissions reductions are additional baseline, monitoring and verification comply with requirements the project complies with all other relevant Small-scale projects must meet the same a barrier analysis there are significant barriers to the project in the absence of CDM a common practice emissions performance to common practice—or a test. Small-scale projects are required to address one of the following simplified tests: investment attractive alternatives to the project would have led to higher emissions barrier—no access to appropriate capital without consideration of the CDM revenue demand baseline. Instructions for setting baselines are set out in methodologies. CDM methodologies can be developed by project operators or other agents, and must be approved by the CDM Executive Board. Some methodologies are also developed by the Secretariat to the CDM Executive Board. Baseline methodologies are regularly are applied to new projects adopting the methodology or to existing projects undergoing renewal. Crediting periods for CDM project activities are set at either seven years (repeatable whether
1.43 billion CERs issued. It is estimated that by 2020, the CDM will generate between 2.8 and 3.7 billion CERs for emissions reductions, destructions or sequesters. The Program of Activities (PoA) is a feature of the CDM that provides a framework to generate large quantities of GHG reductions. Each PoA registers with the CDM as a single program activity, and then registers a larger number of sub-projects undertaking the same activity. There are currently 243 registered PoAs, which cover 1,611 individual activities that have generated about 138,000 CERs. requirements but have simplified procedures. To be classed as small-scale, projects must be: renewable energy project activities (max output 15 MW) energy efficiency project activities (up to 60 GW per year or equivalent) other project activities that both reduce emissions by sources (less than 60 Kt of CO2-e). Forestry projects must also meet similar rules, but also demonstrate that the land is ‘eligible land’ and address Each PoA project activity technological of higher risks due to the performance uncertainty or low market share of the new project technology barrier due to prevailing practice, regulation or policy would have led to of a higher emissions technology other barriers, limited information, managerial resources, capacity or capacity to absorb new technologies. There is a positive list for some small-scale electricity projects (e.g., up to 15 MW) including solar, off-shore wind, twice), or a single 10-year period. Project operators can choose which crediting period to use. Each PoA must have its own baseline established. Each must also provide a calculation of the particular project’s baseline.
must meet eligibility criteria, along with each individual which must be satisfied before inclusion in the PoA project. Most of the CERs issued to date have come from destroying industrial gases (52 per cent), hydro (13 per cent) and wind projects (10 per cent). marine (wave, tidal) and wind turbines (up to 100 kW). These are assumed to be additional. Sources: IETA 2009; CDM website and Rulebook; UNFCCC 2004, 2011a, 2011b, 2012a, 2012b, 2013, 2014, 2014b. Scheme Description Eligibility and coverage Additionality Baseline setting Certified Emissions Reduction (CCER) Scheme The China Certified Emissions Reduction (CCER) scheme is an offset scheme that is complementary to the country’s pilot emissions trading schemes. It provides liable entities in the pilots with the flexibility to access The CCER covers a wide range of activities similar in scope to the CDM. National and international organisations, enterprises and individuals are all under consideration for eligibility to participate in the The CCER does not allow credit for early action as projects that started before 16 February 2005 are not eligible. There is no specific reference to other additionality requirements in the guiding regulations. However, the All CCER projects must use an methodology for calculating their baseline. CCER projects are based on activity/project level baselines, and there are no current active scaled baselines available, such as at the facility or
emission reductions from uncovered sectors. This was developed under China’s 12th Five-Year Plan which specifies plans to develop a carbon trading market to help reduce GHG emissions. The scheme rules were established in 2012, and the market commenced with the pilots. The offsets are issued by China’s National Development and Reform Commission (NDRC) under a voluntary, Chinese offset program that uses either methodologies, or adapted CDM ones. The NDRC must approve renewables scheme. Covered entities in the Chinese pilot ETSs cannot develop or generate CCERs within the geographic scope of the pilot schemes. Projects can be located around China, not just in ETS zones. The CCERs covers a wide range of emissions sources including renewables and in a variety of sectors, fugitive emissions, waste, afforestation, bamboo forest carbon sinks and agriculture. It also includes scope for HFC-23 and N2O industrial gas offsets. scheme will use adapted CDM methodologies, which will include the same or similar additionality tests as the CDM. sector/industry level. The NDRC will review emissions factors annually. Revisions to emissions factors will apply to all new projects and those being renewed. It is not confirmed the revisions to the emissions factors will affect baselines for existing projects. Baselines can be only be reviewed and revised at renewal. This crediting duration is the same as the CDM—a single 10-year crediting period or a seven year period (repeatable twice). Carbon sink projects may have different arrangements.
these methodologies. While the CCER offsets are eligible for use in the seven ETS pilots, their use is limited to between five and 10 per cent of compliance obligation. Two wind power projects have been approved, three CDM projects are under review for transition to the CCERs, and about 60 projects, mostly relating to and energy efficiency projects, are currently under review. If a CDM project is transitioning to CCER, the registered CDM project must first be withdrawn from the CDM, and then an application can be made for entry into the CCER scheme. However, if the registered CDM project has already issued credits, it would not be eligible for CCERs. New methodologies can also be proposed; for example, by project developers or research institutions, which would also need to be approved by the NDRC. 175 methodologies have been approved as CCER methodologies, 171 of these are adapted from the CDM. Sources: Carbon Market Watch 2013, Climate Bridge 2013, 2013b; The Climate Group 2012; NDRC website; NDRC 2013; Yin, D 2013. Scheme Description Eligibility and coverage Additionality Baseline setting Achieve Trade (PAT) PAT is a mandatory national mechanism. It will Both the penalty and credit components of PAT cover eight major sectors There are no specific additionality tests in the PAT scheme. PAT sets baselines at the facility level, and is established on the average of three years
contribute to meeting India’s national emissions target of a 2025 per cent reduction in carbon intensity (of GDP) from 2005 levels by 2020. PAT is a mechanism and creates liable entities. The scheme is a closed trading scheme with no provision for offset credits from uncovered sectors or third parties. The price of the certificates is determined by the market. Its objective is to reduce the energy consumption intensity of large industrial facilities. of the Indian economy. This represents nearly 60 per cent of India’s primary energy consumption. The sectors include: thermal power iron and steel cement fertilizer pulp and textiles Nearly half (48 per cent) of the energy savings will come from the thermal power sector, with iron and steel accounting for 22 per cent. Within each sector, large industrial facilities (plants or factories) As the PAT scheme is a mandatory national level scheme that sets binding efficiency targets for covered facilities, it does not matter if the efficiency improvements are not truly additional. The sum of the individual targets ensures that overall net efficiency improves. historical activity. The baseline is an measure, specified as metric tonnes of oil equivalent per unit of production (in units of product). Where there is significant variation in historical activity due to uncontrollable factors (such as volatile exchange rates), this data can be smoothed for use in establishing the baseline. PAT apportions reduction targets pro rata across sectors are allocated a more stringent target. Within each sector, facilities are benchmarked against the best facility in
This is achieved by establishing energy consumption targets that are set by the regulator, India’s Bureau of Energy Efficiency. The PAT covers industries in eight sectors, in which covered facilities are required to meet, or exceed, individual energy consumption intensity targets. The scheme allows for the creation of credits by liable entities. If a facility exceeds its energy saving target, it is issued with energy saving certificates have been identified and issued individual energy consumption targets. There are currently 478 facilities in the program for the first compliance period. PAT includes both publicly and privately owned facilities. the sector. More inefficient plants will be assigned higher targets relevant to their estimated baseline energy consumption. As emissions intensity is measured per unit of product, this varies across facilities and sectors. Where a facility has multiple products, the PAT rules specify that the main product made in the facility is used (or an equivalent product worked out from the product mix). There is only one baseline for each facility. Baselines in PAT were the result of an extensive consultation between government
(ESCert), which can be banked or traded. If it fails to meet its target, it is required to purchase ESCerts or pay a penalty. While the overall intensity reduction targets vary from facility to facility, reductions will average 4.8 per cent by the end of the scheme’s first compliance period (2012–15). The energy efficiency measures under PAT will help drive energy savings of an estimated 6.7 million tonnes of oil equivalent (28.6 Mt CO2-e) during the PAT’s first cycle departments and firms. New methodologies would only relate to new facilities. New facilities can be included in PAT. Baselines for new facilities can be set using appropriate historical data where available. If only one year of data is provided, then this full year of data can be used to set the baseline. Sources: Bureau of Energy Efficiency 2012; BNEF 2013; Climate and Development Knowledge Index 2013; Khan, M,
Tanwar, N, Shankar, S, & Climate Connect 2011; Ministry of Power 2012; Regan, K, & Mehta, N 2012. Scheme Description Eligibility and coverage Additionality Baseline setting Specified Greenhouse Gas Emitters Regulation (SGER) The SGER is an emissions reduction system established in Alberta, Canada in 2007. It is a single penalty and credit trading scheme that allows for a separate offsets component. The penalty component specifies emissions reduction targets for emitters. These liable entities are required to reduce their emissions intensity to 12 per cent below their 2003–05 baseline emissions intensity. Liable entities can generate credits. Facilities that emit below their baseline The penalty and credit scheme covers all GHGs at facilities generating more than 100kt CO2-e annually in industrial sectors: chemical manufacturing coal mining conventional oil and gas extraction fertilizer and mineral product manufacturing oil petroleum and coal products pipeline transportation primary metal manufacturing utilities waste wood product manufacturing. In 2012, this included 106 facilities from 13 sectors, about 70 per cent of industrial emissions and about half of Alberta’s provincial emissions. Alberta In the penalty and credit scheme, is no specific additionality test—as long as the baseline is met or exceeded, it does not matter the reductions are additional. Offset credits must be generated from activities that go beyond both and regulatory. Alberta assesses additionality during methodology development and periodically during the methodology review. For the penalty scheme, liable entities are measured at the facility level and on an emissions intensity basis (units, tonnes CO2-e per production unit). Production units are the various products produced on the facility, which is summed together to get a single unit. A facility’s stated baseline emissions intensity value must represent the facility’s scenario. Baselines are set using historical data. New facilities can be included in the trading scheme and are
sectors not captured under the penalty scheme who are able to reduce GHG emissions according to an approved protocol (methodology). The offsets scheme has 145 projects registered, with 28.6 Mt CO2-e emissions reductions registered (19.8 Mt emissions reductions retired as at September 2013). be verified by a suitable auditor. The largest volume of offsets has come from agricultural tillage (38 per cent), which has been driven by the use of aggregators and an early action policy (to 2002). Wind energy projects have generated 19 per cent of the credits in the scheme. operator agrees to the revision. These crediting periods are generally eight years, with a possible extension. Conservation cropping projects have a longer crediting period of up to two 10-year periods Afforestation can have up to three 20-year crediting periods. One Carbon Capture and Storage project was given a project specific variance of 25 years to assist this technology innovation. Methodologies were originally started by and territorial governments. Project providers can also submit methodologies. must be assessed and approved by Alberta
Government prior to use. Sources: Auditor General Alberta 2011; Alberta Government 2012, 2013, 2013b; BNEF 2013; Environment and Sustainable Resource Development website; International Institute for Sustainable Development 2011; Specified Gas Emitters Regulation 2007. Scheme Description Eligibility and coverage Additionality Baseline setting United Air Resources Board (ARB) Compliance Offset scheme The ARB Compliance Offset scheme is a crediting mechanism that is complementary to the Californian Cap-and-Trade scheme, which commenced in 2013. Liable entities under the scheme are required to reduce their emissions, or acquire allowances or a limited number of offset credits (up to eight per cent of total compliance obligation) to comply with the program. ARB Offset credits represent verified emissions ARB offset credits are issued by ARB and are the only type of offset credit that can be used to meet compliance obligations for liable entities. The program includes older Californian offset scheme credits which may be cancelled and transitioned to ARB offset credits: early action offset credits - voluntary offset credits that were issued under approved early action registry offset Emissions reductions used for compliance are required to be beyond what would otherwise be required by law, regulation, or legally binding mandate, and that exceeds a conservative scenario. For each proposed project, tests are applied to determine whether the activity is additional to local, state, or federal regulation. Each individual methodology also tests for additionality by establishing if the activity is common practice in the applicable geographic area. For instance, Baselines in the ARB offset scheme are mostly and some are specified at the facility level. Methodologies include standardized methods for determining project baselines for each project type. The standardized baseline methodologies reflect a conservative estimate of business-as-usual. Baseline quantifications are specified for the four methodologies. Each baseline is measured differently depending on the specifics of the California
reductions or removals achieved under ARB’s Compliance Offset Protocols (methodologies approved by he Board). Californian law requires that offsets used for compliance must be real, additional, quantifiable, verifiable, permanent and enforceable. These criteria are met through the: design of the regulation use of use of accredited third-party verification bodies and verifiers ARB review of offset project related to reporting and verification. credits - voluntary offset credits issued by an approved third party registry prior to ARB for compliance issuance ARB offset credits can only be earned by activities not covered under the cap. ARB offset projects must use an approved methodology. There are four areas covered: urban forestry US forestry livestock digesters destruction of substances (ODS), which relates specifically to Montreal Protocol gases. A mine methane capture livestock projects: It must be demonstrated that the activity is beyond the physical depth of the anaerobic lagoons or ponds prior to were sufficient to prevent the activity from occurring anyway. For new livestock projects, it can be demonstrated that the project activity is not common practice in the industry and geographic region. The ODS destruction methodology adds an additional criteria to the standard can only be undertaken by project; for instance: ODS baselines estimate GHG emissions within the project boundary that would have occurred in the absence of the project. livestock digester baselines estimate GHG emissions resulting from the installation of biogas control systems that capture and destroy methane from livestock operations. urban forestry baselines estimate the amount of carbon sequestered in eligible project trees, minus emissions from the planting, care and maintenance of those trees over the reporting period. US Forest baselines calculate the onsite carbon
protocol will be proposed to the Board for approval in Spring 2014. A rice cultivation methodology is under development for draft release. Offset projects must after 31 December 2006, unless otherwise specified in the applicable methodology. Projects originally developed under an approved early action methodology may have a start date before 31 December 2006 and must transition to a Compliance Offset Protocol beginning in 2015. Offset projects must be located in the US and its territories, Canada or Mexico. Currently, all approved methodologies are for US based projects the non-public sector (as ODS destruction is common practice for the US Government and is therefore stock of the project area, which are then annually compared to the actual onsite carbon stock. Activities are either metered/monitored (for GHG destruction), or measured as changes in carbon stock (carbon sink). Accordingly, absolute baselines are used for these activities. Crediting periods in the scheme are generally seven to 10 years for projects, and up to 25 years for forestry. Depending on the methodology, a range of data can be used including historical, projections and standardised default factors. New methodologies can be developed by ARB, with public input and Board adoption, to satisfy the