Additionality

Additionality is the principle used to determine whether a project generating carbon credits delivers emission reductions or removals that would not have occurred without it. A project is additional when the funding raised from selling credits is the reason, or a decisive reason, that the emission reduction happens.

Why it is the most debated criterion in carbon credits

Additionality is hard to prove because it requires comparing reality with a hypothetical scenario that never happened, known as the baseline or "business as usual" scenario. If a project would have gone ahead anyway, because it was profitable on its own or legally required, its reductions are not additional, and the credits it generates do not represent a real reduction in global emissions.

Types of additionality tests

• Barrier test: shows that financial, technological or institutional barriers would prevent the project without credit revenue.
• Investment test: compares the project's profitability with and without carbon credit income, to check it was not viable on its own.
• Common practice test: checks whether similar projects are already being developed without carbon credit support in the same context, which would weaken additionality.
• Regulatory test: confirms the project is not already a legal requirement under current regulation.

Standards that assess it

Certification standards such as the Verified Carbon Standard (VCS) or Gold Standard require specific methodologies to demonstrate additionality before issuing credits into the voluntary carbon market. Weak additionality assessments, together with overestimated reductions, have been among the main criticisms levelled at the voluntary market in recent years.

Why it matters for your company

If your company uses carbon credits to offset emissions, a project's additionality is one of the factors that most affects the credibility of that offset with investors, customers and regulators. Buying credits from projects with weak or unproven additionality exposes the company to reputational risk and accusations of greenwashing.

At Manglai we help you understand the quality of the carbon credits you are considering as part of your reduction strategy. Discover how Manglai can help you.