Methods for project-based mechanisms (JI/CDM)—relevance of IPCC inventory guidelines

A baseline for a project consists of estimates of annual emissions of greenhouse gases (GHG) for a given time period without implementing the project. A general three-step process for determining the baseline is suggested. The emission reduction of the project is given by the difference between the baseline and the monitored annual emissions. A preferred method, direct measurement of the emission reduction, is possible for some types of projects. Methods for estimating the annual baseline emissions are not necessary for the latter category, and a definition of this project category is suggested. IPCC Guidelines for National GHG Inventories categorise the emission sources so that only direct emissions from consumption of fuel and feedstock are calculated. There are thus no emission factors for indirect emissions (e.g. electricity consumption or km transported) or emission factors that depend on technology only, independent of consumption of fuel and feedstock. Technology-dependent emission factors may thus need to be developed for estimating indirect emissions and multi-project baselines. Consistency should be sought with the IPCC Guidelines when estimating annual baseline emissions and in monitoring project emissions to ensure comparability with the National Inventories.