Additionality means that the underlying project provides additional benefits to the climate that would not have been possible without this investment. For example, renewable energy projects have become so economically viable that they do not require carbon markets to exist. This means that they do not provide additionality, except perhaps in countries where the transition to renewable energy is not as feasible as in others.

Realistic baselines refer to the fact that many climate projects are based on assumptions and counterfactual scenarios. In such cases, the baseline estimates the emissions that would have occurred in a “business as usual” scenario without the project and hence the emissions savings it represents. It is vital that this baseline is set very conservatively to avoid “hot air” emissions savings.

Double counting occurs when two or more parties claim the same emissions reductions. This can occur, for example, when a country records an emission reduction in its national accounts and this same emission reduction is sold in the form of a carbon credit to a company which also claims it for offsetting purposes. This must be avoided at all cost.

Robust monitoring, reporting and verification criteria and practices are vital for ensuring that climate projects deliver on their promised impact and clearly identify when they fail so that remedial action can be taken. These systems need to be in place over the long term to also safeguard permanence.

Human rights and benefits to the local community are vital components of any climate project and project developers must ensure this through a robust consultation process and a fair grievance mechanism.