Requirements for Addressing Leakage in Methodologies 

Scope: Requirements for identifying, avoiding, and quantifying leakage emissions. 

Overview “Leakage” refers to unintended greenhouse gas emissions that occur outside the project boundary as a result of the project activity. This standard ensures that projects do not simply shift emissions elsewhere (e.g., protecting a forest in one area causing deforestation in a neighboring area). 

The Three-Tiered Approach Methodologies shall mandate a strict hierarchy of actions: 

1. Identify: List all potential sources of leakage, such as: 

• Baseline Equipment Transfer: Old equipment being moved and used elsewhere. 

• Resource Competition: Using scarce resources (e.g., biomass) that forces others to use higher-emission alternatives. 

• Diversion of Production: Reducing service levels that leads to production shifting elsewhere. 

2. Avoid or Minimise: Implement project design features or applicability conditions to prevent leakage from happening. 

3. Calculate and Subtract: If leakage cannot be fully avoided, the remaining negative leakage must be quantified and subtracted from the project’s total emission reductions.