Common Practice Analysis

Scope: Standardised quantitative procedure for conducting common practice analysis to demonstrate additionality. 

Overview This tool removes subjectivity from additionality assessment by providing a strict, quantitative framework to determine if a project’s technology or practice is already “common” in the market. If a project is deemed “common practice” according to these metrics, it is not eligible for carbon credits. 

Key Features 

• Quantitative Thresholds (Fmax): Uses “Technology Maturity Categories” (TMC) based on innovation diffusion curves to set strict percentage limits for common practice: 

• TMC-1 (Nascent): Novel technologies (very low threshold). 

• TMC-2 (Early Adopter): Viable but barriers exist. 

• TMC-3 (Early Majority): Rapid growth phase (higher threshold). 

• Two Assessment Approaches: 

• Stock-Based: Measures the total cumulative installed units (best for mature/slow markets). 

• Flow-Based: Measures the rate of recent adoption/sales over the last ~3 years (best for fast-moving markets). 

• Equity Provisions: Recognises that market penetration in Least Developed Countries (LDCs) and Small Island Developing States (SIDS) faces higher systemic barriers. Therefore, these regions are assigned higher thresholds (allowing higher market penetration while still being considered “additional”). 

• Methodology-Level Analysis: To increase efficiency, the tool allows for a common practice analysis to be conducted once at the methodology level (valid for 3 years), saving individual projects from repeating the complex assessment.