Summary
Additionality is widely considered to be a core aspect of the quality assurance of emissions reduction and carbon sequestration activities, but remains a source of much controversy in national carbon accounting, international regulatory frameworks and carbon markets.
A review of the approaches to additionality (along with a review of approaches to carbon valuation, discounting and risk management) was commissioned to help inform the development of a Woodland Carbon Code.
Background
The concept is used to distinguish positive net benefits associated with an activity or project. In a climate change context additionality is used to mean net greenhouse gas (GHG) emissions savings or sequestration benefits over and above those that would have arisen anyway in the absence of a given activity or project.
The underlying rationale is to enable activities contributing further to climate change mitigation to be distinguished from those which, although they may appear associated with carbon savings, do not offer benefits above those expected anyway. Identifying which savings are additional can help avoid credits being issued for carbon benefits that would have arisen in any case and avoid purchasers paying for no substantive gain in climate change mitigation.
The concept is reflected in Articles 3.4, 6.1 and 12.5 of the Kyoto Protocol.
Defined and measured in a variety of ways, it remains a source of much controversy in national carbon accounting, international regulatory frameworks and carbon markets.
Objectives
- Review core concepts, the underlying rationale for the application of additionality to carbon markets, and key issues.
- Review common types of additionality tests.
- Outline the range of additionality methodologies adopted under different international mechanisms and voluntary carbon standards, including indicators used and evidence requirements.
- Consider implications of Kyoto Protocol/National GHG Inventory carbon accounting for generation/ claiming of carbon credits for woodland projects.
- Compare methodologies applied to ex-ante (future carbon) and ex-post (captured carbon) projects.
Findings summary
- Additionality is multi-faceted. At least fifteen forms can be distinguished (see table below).
- Differences in tests do not relate to differences between ex-post and ex-ante crediting, they relate partly to rigour-cost trade-offs.
- Aspects seldom covered explicitly by additionality tests can be very significant (e.g. GHG additionality).
- Determining additionality is imprecise and is likely to remain controversial even where comparatively stringent tests are applied.
Research summary, detailed findings and recommendations (PDF-337K)
| Category | Form | Description |
|---|---|---|
| Legal, regulatory, institutional | Barrier | Overcome implementation barrier |
| Compliance | Exceed statutory requirements | |
| Date | Activities occur after a particular date | |
| Incentive | Exceed benefits associated with incentives provided by regulatory framework | |
| Institutional | Independent of statutory emissions reduction targets | |
| Jurisdiction | Activities in particular location or undertaken by specific communities or social groups | |
| Practice | Not common practice | |
| Reporting | National carbon accounting / reporting additionality rules | |
| Technological | Application of specific technology | |
| Financial and investment | Financial | Would not be financed without sale of carbon units |
| Investment | Not financially viable or most attractive option without sale of carbon units | |
| Sales | Income from the sale of carbon credits a decisive factor in decision to proceed | |
| Environmental | GHG | Positive impact on GHG balances (net reduction in GHG emissions / increase in GHG sequestration) |
| Unit | Emissions per unit output below specified level | |
| Project |
|
Research report
Forests and carbon: a review of additionality (PDF-559K)
Helping to clarify the concept of additionality, and provide an overview of how it is currently applied in both compliance and voluntary carbon markets, including tests used and underlying evidence base requirements. It provides background for considering how the additionality principle might be interpreted and applied in establishing standards for woodland climate change mitigation projects in the UK, including in developing an industry Code of Good Practice.
Contact
For further information contact:
Gregory Valatin
Northern Research Station
Forest Research
Roslin
Midlothian
Scotland EH25 9SY
Email: gregory.valatin@forestry.gsi.gov.uk
See also further information on climate-change related research being conducted by Forest Research
