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Additionality is one of the key principles for evaluating the climate impact of a carbon crediting project. It refers to whether the project is delivering climate benefits that would not have occurred otherwise, due to a lack of funding or of regulation. For example, renewable energy projects are mostly financially feasible on their own without the need for additional funding from carbon credits. The rare exception can be renewable energy projects in the world’s poorest countries. This means that renewable energy should mostly not qualify for carbon market funding, and credits should not be issued based on such projects. If a carbon credit is not additional, the buyer does not pay for a real climate benefit.
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