Additionality
Would this happen anyway?
Your Progress
Section 3 of 5The Core Question
A carbon credit should only be issued if the project would not have happened without carbon finance. This is called additionality.
Why It Matters
If a wind farm was already profitable and would have been built anyway, issuing carbon credits for it doesn't reduce emissions—it just subsidizes a project that would have happened regardless.
The Additionality Test Battery
1. Financial Test
Is the project profitable without carbon revenue?
2. Regulatory Test
Is it required by law or regulation?
3. Common Practice Test
Is this technology/practice already widespread?
4. Barrier Test
Are there significant barriers preventing adoption?
Passing Criteria
A project must pass all four tests to be considered additional. Failing even one test means the project likely would have happened anyway.
🎯 Interactive: Test a Project
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Wind Farm in Texas
Corporate buyer pre-committed to purchase all power at $30/MWh
💰 Financial Test
📜 Regulatory Test
📊 Common Practice Test
🚧 Barrier Test