Standardized Baselines for the CDM – Are We on the Right Track?

The authors argue that the current CDM framework for standardized baselines is too rigid and impractical, potentially leading to both over-crediting and under-crediting of emission reductions. They recommend moving away from a single methodological approach in favor of sector-specific, data-driven baselines that are mandatory once approved and reflect technological trends over time.

• The current 'Guidelines for the establishment of sector specific standardized baselines' employ a single methodological approach across different sectors and locations, which the authors argue is unsuitable for many project types, such as fuel switching in existing plants.
• The use of uniform default stringency levels across various technologies and sectors may result in significant over-crediting, undermining the mechanism's integrity, or significant under-crediting, which removes incentives for project developers.
• The proposal to use constant baseline emission factors for entire crediting periods (up to 10 or 30 years) fails to account for industries with high rates of innovation or significant changes in emission intensity over time.
• Because the use of standardized baselines is currently voluntary, there is a risk that project developers will only select them when they offer higher baseline emissions than project-specific baselines, leading to over-crediting.
• The framework faces significant data availability challenges, as it requires extensive activity and technology data for entire markets that may be commercially sensitive or unavailable, and relies partly on hypothetical design efficiencies rather than actual performance.
• Proposed rules that would remove the 'prior consideration' requirement for projects using standardized baselines could allow the registration of projects that are clearly not additional.
• The authors recommend that standardized baselines should be developed based on actual projects and sector-specific circumstances, be mandatory once approved, and include a pre-determined path for emission factors to change over time to drive technological change.

APA

Schneider, L., Broekhoff, D., Fuessler, J., Lazarus, M., Michaelowa, A., & Spalding-Fecher, R. (2012). Standardized Baselines for the CDM – Are We on the Right Track? Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/Climate/Policy-paper-2012-Standardized-baselines-CDM.pdf

Chicago

Schneider, Lambert, Derik Broekhoff, Juerg Fuessler, Michael Lazarus, Axel Michaelowa, and Randall Spalding-Fecher. Standardized Baselines for the CDM – Are We on the Right Track? Stockholm Environment Institute, 2012. https://www.sei.org/mediamanager/documents/Publications/Climate/Policy-paper-2012-Standardized-baselines-CDM.pdf.

Wikipedia

{{cite report |last1=Schneider |first1=Lambert |last2=Broekhoff |first2=Derik |last3=Fuessler |first3=Juerg |last4=Lazarus |first4=Michael |last5=Michaelowa |first5=Axel |last6=Spalding-Fecher |first6=Randall |title=Standardized Baselines for the CDM – Are We on the Right Track? |publisher=Stockholm Environment Institute |date=20 November 2012 |url=https://www.sei.org/mediamanager/documents/Publications/Climate/Policy-paper-2012-Standardized-baselines-CDM.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{schneider2012standardized, author = {Schneider, Lambert and Broekhoff, Derik and Fuessler, Juerg and Lazarus, Michael and Michaelowa, Axel and Spalding-Fecher, Randall}, title = {{Standardized Baselines for the CDM – Are We on the Right Track?}}, institution = {Stockholm Environment Institute}, year = {2012}, month = nov, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/Policy-paper-2012-Standardized-baselines-CDM.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }