METHODOLOGY-SDG IQ

The 'METHODOLOGY-SDG IQ' (GS4GG PAA M400-06) is a global guide for quantifying greenhouse gas (GHG) emission reductions achieved by replacing operational fossil-fuel-based electricity generators with new renewable energy systems (RES). It emphasizes an 'Integrated Replacement' approach, requiring the permanent decommissioning of fossil-fuel assets and the implementation of a Just Transition Plan to ensure maintained or improved energy access.

• The methodology requires an 'Integrated Replacement' where the commissioning of a new renewable energy system (RES) is causally and contractually linked to the 'accelerated and permanent decommissioning of an existing fossil-fuel generator or fossil-fired mini-grid'.
• Baseline emissions are determined using a tiered approach: Tier 1 uses site-specific historical data (12-36 months), while Tier 2 uses 'conservative standardized defaults' when data is unavailable. To prevent rewarding historical inefficiency, Tier 1 emission factors are capped by the Tier 2 defaults.
• Baseline emissions are adjusted annually using a Downward Adjustment Factor (DAF) to align with the host country's Net Zero trajectory and ensure the activity goes beyond Business-as-Usual (BAU).
• A mandatory Just Transition Plan must be implemented, with the required scope determined by the socio-economic impact tier: Tier 1 (Minimal Impact, < 1 FTE equivalent), Tier 2 (Moderate Impact, 110 FTE equivalent), or Tier 3 (Significant Impact, > 10 FTE equivalent).
• Additionality is demonstrated via Investment Analysis, Barrier Analysis, or a 'Positive List' for micro/small-scale activities in Least Developed Countries (LDCs), Small Island Developing States (SIDS), or Vulnerable Regions of Lower-Middle-Income Countries.
• The methodology accounts for 'gap leakage', which occurs if the baseline system is removed before the RES is fully operational, necessitating compensatory generation from other sources.
• Total activity emissions must include mandatory 'embodied emissions' from the manufacturing of RES/BESS infrastructure, which are amortized over the first crediting period, and emissions from direct land use change if material.
• The methodology includes a voluntary annex for quantifying the avoidance of Black Carbon (BC) and Fine Particulate Matter (PM2.5), reporting these as climate and health co-benefits separately from net GHG reductions.
• To prevent reversal risks, the RES must comply with international quality standards (e.g., IEC) and follow a comprehensive Operation and Maintenance (O&M) plan, including a component replacement strategy for batteries and inverters.

APA

Sustainable Energy for All (n.d.). METHODOLOGY-SDG IQ. https://www.seforall.org/system/files/2026-03/460_v1.0_PAA-M400-06_JUST-Fossil-Fuel-Generator.pdf

Chicago

Sustainable Energy for All. METHODOLOGY-SDG IQ. n.d. https://www.seforall.org/system/files/2026-03/460_v1.0_PAA-M400-06_JUST-Fossil-Fuel-Generator.pdf.

Wikipedia

{{cite report |author=Sustainable Energy for All |title=METHODOLOGY-SDG IQ |url=https://www.seforall.org/system/files/2026-03/460_v1.0_PAA-M400-06_JUST-Fossil-Fuel-Generator.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sustainableenergyforallndmethodologysdg, author = {{Sustainable Energy for All}}, title = {{METHODOLOGY-SDG IQ}}, institution = {Sustainable Energy for All}, url = {https://www.seforall.org/system/files/2026-03/460_v1.0_PAA-M400-06_JUST-Fossil-Fuel-Generator.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }