Additionality

Clean Development Mechanism

In the context of the Clean Development Mechanism (CDM), additionality refers to output additionality: the amount of emission reductions or sequestration that would not have been achieved but for the CDM project. As stated in the 1997 Kyoto Protocol, reductions in emissions achieved under the CDM “are additional to any that would occur in the absence of the [CDM project].” However, the CDM was only agreed upon late during the Kyoto negotiations, without comprehensive rules to guide operationalization. In the interim period from 1997 to 2002, while rules for the CDM were negotiated, several projects were initiated under the CDM banner in a manner that interpreted additionality to mean only that emissions of the project were lower than those of a baseline scenario, though not necessarily requiring the CDM to be undertaken. Such projects would not meet current definitions of additionality.

The 2002 Marrakesh Accords sought to clarify the CDM as an international mechanism for reducing emissions in developing countries. Significantly, the accords distinguished two components of additionality: emission reductions additionality and financing. In terms of emission reductions, the Marrakesh Accords stated, “A CDM project activity is additional if anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in the absence of the registered CDM project activity” (CMP.1 Art.43). In terms of financial additionality, the Marrakesh Accords emphasized, “public funding for [CDM] projects from [industrialized countries] is not to result in the diversion of official development assistance and is to be separate from and not counted toward the financial obligations of [industrialized countries]” (Decision 17/CP.17, preamble). In practice, however, industrialized countries agreed that official development assistance might be directed to CDM-related activities, but could not be used by them to actually purchase any credits thus generated.

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