Requirements for Addressing Leakage in Methodologies
UPDATE
Gold Standard is updating all existing methodologies to align with the principles of the Paris Agreement (PA). Non-Paris aligned methodologies will be retired, and PA-Aligned versions must be applied for all vintage 2026 issuances. Please read the full update here and associated FAQs.
Gold Standard Methodologies will be revised in accordance with the PA Alignment Schedule and prioritised based on usage. Paris aligned methodologies will be published on our Paris Agreement Alignment Documents page.
To leverage existing assessments, Gold Standard is actively following the UNFCCC process to republish CDM methodologies under Paris Agreement Crediting Mechanism (PACM). If there are significant delays with PACM publication, Gold Standard will include and update any relevant methodologies within its workplan.
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:
- 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.
- Avoid or Minimise: Implement project design features or applicability conditions to prevent leakage from happening.
- 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.