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Additionality of CO2 Reductions


What makes additionality a challenging issue and a tough concept to explain is not its actual definition, but its application in practice. There is no way to determine with absolute certainty if a project is additional or not. Instead, many different additionality tests and eligibility criteria have been developed to maximize the accuracy of additionality testing.

 

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Determining Additionality Of GHG Reduction Projects

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Additionality Tests & Eligibility Criteria Define Reductions

 

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How to Determine Additionality Of Greenhouse Gas (GHG) Reduction Projects

As facilities with refrigeration and air-conditioning (RAC) systems or heating, ventilation and air conditioning (HVAC) systems begin efforts to reduce greenhouse gas emissions, additionality will be used to determine the effectiveness of their changes. The formula compares business as usual prior to implementation with the levels of emissions after a greenhouse gas reduction project is in place.

Before a greenhouse gas reduction project is implemented, a monitoring and verification (M&V) plan must be developed to quantify and verify results. The additionality metrics included in the plan should explain when, how and who will be conducting the monitoring and verification process. Generally, software developed by specialists in the area is used to streamline the M&V process.

Many facilities that use refrigerant conduct a project specific assessment to determine additionality. This method evaluates greenhouse gas reduction projects on an individual basis by creating a baseline of emission levels before the project is in place. After the project is implemented, the emission levels are compared to the baseline to determine actual reduction in greenhouse gas emissions.

Additionality can be determined using a performance standard assessment. This is common for a specific industry, like manufacturers of refrigeration and air-conditioning (RAC) systems or heating, ventilation and air conditioning (HVAC) systems. It measures performance improvements to the existing industry standard for a particular appliance or process as they relate to greenhouse gas reduction.

When it comes to slowing global climate change caused by greenhouse gas emissions, additionality plays a key role in determining the effectiveness of a reduction project. Greenhouse gas offset projects are being conducted across all industry sectors. Some examples are renewable energy efforts, methane capture and recovery in landfills, and reforestation.

For businesses, it is important from an accounting standpoint to show the benefits of a greenhouse gas reduction program. In order for it to be a true emissions reduction, additionality criteria must be met. Ongoing monitoring and verification are key components to ensure actual reductions are real and have long-term sustainability.

For facilities developing methods to reduce their use of refrigerant gas, automation of monitoring and tracking exists through software and web based applications developed by software providers who specialize in this area.

Part of any additionality equation is an examination of how permanent the project will be and a determination of any risk factors involved. The issue of leakage should be addressed and properly accounted for through monitoring and verification.

There is much discussion in the U.S. and other foreign countries as to whether funding should be made available to companies to enact programs aimed at reducing greenhouse gas emissions. Currently, a benchmarking system and protocols for certain industry sectors are under development. Determination of funding would rely on additionality to show how the project goes well beyond business as usual improvements. For example, if a project would have occurred anyway as part of a business improvement, then funding credits would not be awarded.
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