Additionality (carbon credits)

    ESG & Governance

    The test of whether an emission reduction would have happened anyway without the money from selling carbon credits.

    A credit is additional only if the project depends on credit revenue to go ahead. A solar plant that is already profitable without credits, or a forest that was never at risk of being cut, fails the test. Non-additional credits do not represent real climate benefit. Additionality is one of the hardest tests to prove and one of the main reasons credit quality varies.

    Related terms

    Carbon creditPermanenceLeakage (carbon)Double counting

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