Baseline, leakage and measurement issues: how do forestry and energy projects compare?

This paper examines three issues in quantifying project-level emissions reductions (ERs): baseline and additionality determination, leakage assessment, and measurement of net emissions. It finds no systematic differences between land use change and forestry (LUCF) and energy projects in addressing these issues. Rather, the ease of quantification depends on the following: The level and distribution of direct financial benefits that result from the project, since this is a key determinant of additionality. The degree to which the project is integrated with a broader physical and economic system, since this determines the amount of leakage. The internal homogeneity and geographic dispersion of the project components-a key determinant of measurement costs. These dimensions cut across the energy versus LUCF distinction. (C) 2002 Elsevier Science Ltd. All rights reserved.