The Nuts and Bolts of Baseline Setting

This document provides an overview of
baseline setting for greenhouse gas (GHG) crediting
mechanisms. The first section briefly explains the general
purpose and objectives of setting a crediting mechanism
baseline. The second section summarizes key policy
considerations in defining and setting baselines. The final
section covers important technical elements of baselines and
provides an overview of various methods that can be used to
estimate baseline emissions. The main purpose of this
technical note is to examine key issues for baseline setting
in the context of scaled-up crediting mechanisms. Many of
the technical and policy considerations presented here,
however, are relevant to existing project-based crediting
mechanisms as well, and the discussion takes into account
concepts developed and experience gained under these
mechanisms. In addition, most of the concepts and examples
presented here are relevant to setting baselines in the
energy and industry sectors. Where relevant, however,
examples from other sectors, including forestry and
land-use, are used to illustrate important ideas.