Towards a More Rigorous Method to Assess the Additionality of Emission-Reduction Projects

Abstract

Carbon offsetting is a mechanism by which an organization takes credit for carrying out a project that reduces carbon emissions or one that removes carbon dioxide from the atmosphere. So far, these mechanisms calculate the amount of credits they give by comparing the current emissions once the project has been carried out with the amount of emissions that would have been produced if it wasn't carried out. Such reliance in a counterfactual brings multiple problems and it is the main reason why these mechanisms face strong criticisms by a wide range of organizations and the general public. We present a more rigorous method to give carbon credits to organizations based on control or counterfactual substitutes. Advantages and disadvantages of the proposed mechanism are also discussed.