What are the requirements for addressing double counting in scenarios where there are multiple entities along a project’s value chain who could claim ownership of GHG emission reductions and/or removals?
Double counting of GHG emission reductions and/or removals may occur in scenarios where there are multiple entities along a project’s value chain who could claim ownership of such reductions/removals. For example, in an energy-efficient lighting project, GHG emission reductions could be claimed upstream by the equipment manufacturer, downstream by the end user, or by intermediaries such as retailers and distributors. It is important that the risk of such double counting is assessed at the methodology level, and that appropriate procedures are set out at the project level to address the issue. Where necessary, agreements between the project proponent and all other potential claimants of the GHG emission reductions and/or removals, including end users, should be developed to establish clear ownership of the reductions/removals. However, where upstream entities such as equipment manufacturers claim GHG emission reductions and/or removals, end users do not have to be included in the project boundary if:
- it is neither realistic nor feasible for end users to claim GHG emission reductions and/or removals as in the case of grid-connected renewable energy generation, and
- monitoring arrangements are adequate to ensure that quantification of GHG emission reductions and/or removals is based on the actual consumption of the product and/or equipment that results in the reductions/ removals.
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