Coverage, Additionality and Baselines - Lessons from the Carbon Farming Initiative and other schemes
This paper specifically looks at how other schemes have approached three central design features – what sectors or activities are covered; how to ensure emissions reductions are genuinely ‘additional’; and how baselines are set. Key lessons include:
- With an objective of achieving least cost emissions reductions across the economy, most emissions reductions from the Emissions Reduction Fund are likely to arise from a subset of covered sectors, particularly the energy and industrial sectors.
- Ensuring only genuine and additional emissions reductions are purchased can be resource-intensive and administratively time-consuming.
- Clear rules on setting baselines can ensure consistent treatment of similar projects, reduce uncertainty for project developers and allow for scheme administrators to more easily approve projects.
- Baseline and credit mechanisms do not suit all abatement opportunities. The Emissions Reduction Fund is likely to be most effective as part of a broader suite of policy measures.
The paper does not make recommendations to government.
The research paper is available here: (PDF 7.02MB)
- Key lessons – (PDF 43KB) | (DOCX 16KB)
- Chapter 1 – Introduction (PDF 219KB) | (DOCX 167KB)
- Chapter 2 – Key characteristics of baseline and credit schemes (PDF 84KB) | (DOCX 38KB)
- Chapter 3 – Coverage and uptake (PDF 240KB) | (DOCX 151KB)
- Chapter 4 – Additionvality (PDF 77KB) | (DOCX 27KB)
- Chapter 5 – Baseline setting (PDF 115KB) | (DOCX 44KB)
- Chapter 6 – Conclusion (PDF 20KB) | (DOCX 13KB)
- List of boxes, figures and tables – (PDF 32KB) | (DOCX 13KB)
- Glossary – (PDF 38KB) | (DOCX 16KB)
- Abbreviations and acronyms – (PDF 30KB) | (DOCX 13KB)
- References – (PDF 72KB) | (DOCX 19KB)