Publication:
The Nuts and Bolts of Baseline Setting: Why, What and How?

Loading...
Thumbnail Image
Files in English
English PDF (1.35 MB)
604 downloads
English Text (94.93 KB)
76 downloads
Date
2012-08
ISSN
Published
2012-08
Editor(s)
Abstract
This document provides an overview of baseline setting for greenhouse gas (GHG) crediting mechanisms. The first section briefly explains the general purpose and objectives of setting a crediting mechanism baseline. The second section summarizes key policy considerations in defining and setting baselines. The final section covers important technical elements of baselines and provides an overview of various methods that can be used to estimate baseline emissions. The main purpose of this technical note is to examine key issues for baseline setting in the context of scaled-up crediting mechanisms. Many of the technical and policy considerations presented here, however, are relevant to existing project-based crediting mechanisms as well, and the discussion takes into account concepts developed and experience gained under these mechanisms. In addition, most of the concepts and examples presented here are relevant to setting baselines in the energy and industry sectors. Where relevant, however, examples from other sectors, including forestry and land-use, are used to illustrate important ideas.
Link to Data Set
Citation
Partnership for Market Readiness. 2012. The Nuts and Bolts of Baseline Setting: Why, What and How?. Partnership for Market Readiness technical papers;no 3. © World Bank. http://hdl.handle.net/10986/21829 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Domestic Emissions Trading
    (World Bank, Washington, DC, 2012-04) Partnership for Market Readiness
    This document provides an overview and summary assessment of lessons and insights learned from various existing and presented domestic cap and trade schemes. For each scheme, a set of general characteristics (or issues) is considered. The characteristics (or issues) covered include the following: (i) coverage and scope; (ii) setting a cap; (iii) setting the points of obligation; (iv) allocation of allowances; (v) systems for domestic monitoring, reporting and verification, (MRV) and compliance; (vi) enabling trading and fostering stability; (vii) institutional arrangements, including technical and legal infrastructures; and (viii) use of offsets and linking. The domestic emissions trading schemes (ETS) included in this assessment are the following: (i) European Union (EU) ETS; (ii) New Zealand (NZ) ETS; (iii) United States (U.S.) northeast states regional greenhouse gas initiative (RGGI); (iv) California (Cal) ETS; (v) Australia clean energy future carbon pricing mechanism (Aus CPM); and (vi) Tokyo cap and trade program (C and T).
  • Publication
    Climate Change and the World Bank Group : Phase II - The Challenge of Low-Carbon Development
    (Washington, DC: World Bank, 2010) Independent Evaluation Group
    The first volume of Independent Evaluation Group (IEG) series (IEG 2009) examined World Bank experience with the promotion of the most important win-win (no regrets) energy policies, policies that combine domestic gains with global greenhouse gas (GHG) reductions. These included energy pricing reform and policies to promote energy efficiency. This second phase covers the entire World Bank Group (WBG), including the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). It assesses of interventions, from technical assistance to financing to regulatory reform. This project-eye view of activities pertains to all the action areas of the Strategic Framework on Development and Climate Change (SFDCC). The third phase will look at the challenge of adaptation to climate change. The WBG's resources, human and financial, are small compared to the task at hand. The International Energy Agency estimates that developing and transition countries need $16 trillion of energy sector investments over 2008-30 under 'business as usual' operations, plus an additional $5 trillion to shift to an ambitiously low-carbon path. Much more is needed for sustainable land and forest management and for urban transport. So a prime focus of this evaluation is how the WBG can get the most leverage, the widest positive impact on both development and climate change mitigation, from its limited resources.
  • Publication
    A Survey of the MRV Systems for China's ETS Pilots
    (World Bank, Washington, DC, 2014-07) Partnership for Market Readiness
    This report provides a survey of the key features associated with greenhouse gas (GHG) monitoring, reporting, and verification (MRV) systems that support the pilot emissions trading schemes (ETS) in China. The seven pilots are: Beijing, Chongqing, Guangdong, Hubei, Shanghai, Shenzhen, and Tianjin. This report has the following structure. (1) It begins with an overview of each ETS, to provide context for the MRV systems of the pilots. (2) The second part includes a summary table of the attributes of the MRV systems for all the pilots. (3) The report concludes with observations about the similarities and differences of the MRV systems for the pilots as well as the published rules and procedures for the national MRV system. The technical challenges for developing the MRV are also identified. Practical aspects of the determination of boundaries, development of methodology, acquisition of activity data, emission factors and evidence for cross check are discussed. Engagement of stakeholders, capacity building and supporting institutions are also explored, as well as lessons learned.
  • Publication
    Scaling Up Investment in Climate Change Mitigation Activities
    (World Bank, Washington, DC, 2009-01) Ward, Murray; Garibaldi, Jose Alberto; Hampton, Kate; Höhne, Niklas; Jung, Martina; Bakir, Alex; Gray, Steven; Ward, Murray
    The case for scaling up mitigation efforts is urgent and has been made repeatedly in the last few years whether denominated in gigatonnes of needed reductions in greenhouse gas emissions per year or tens of 'gigadollars' of needed annual investments in zero and low carbon technologies and systems. The World Bank is now beginning to actively engage partners it contemplates in its new carbon partnership facility. As these discussions 'get down to business', it will be helpful to have a better understanding of the types of scaling up opportunities and the steps that need to be taken to get proper policy frameworks in place (internationally and domestically) to ensure carbon finance plays an effective role. This paper is organised as follows : Section 2 provides detail on what 'scaling up' means in practice. It draws from literature looking at this question from a range of perspectives; and Section 3 looks at the policy and investment situation for scaling up activities that exists today, i.e. in advance of any new policy instruments being considered in a post-2012 context.
  • Publication
    Existing and Potential Technologies for Carbon Emissions Reductions in the Indian Cement Industry : A Set of Technical Papers Produced for the Project 'Low Carbon Technology Road Map for the Indian Cement Industry'
    (Washington, DC, 2013-01) World Bank
    This set of technical papers was commissioned by the Cement Sustainability Initiative (CSI) members in India. CSI is a member-led program of the World Business Council for Sustainable Development (WBCSD). The report represents the independent work of the CII - Godrej Green Business Centre (CII, Godrej GBC), a center of excellence of Confederation of Indian Industry (CII) and the National Council for Cement and Building Materials (NCB). The author of each paper is shown after its title. It aims to identify, describe and evaluate technologies, which may contribute to increased energy efficiencies and reduced greenhouse gas emissions from cement production in India today and in the longer-term. The results have been reviewed by CII, NCB, CSI member companies and stakeholders like the International Energy Agency (IEA). All papers follow the same format, outlining the current status of the technology, the impact on energy consumption, anticipated benefits from implementation, the CO? reduction potential, main parameters influencing implementation, cost estimation, and the conditions, barriers and constraints of implementation. For the more futuristic technologies, where quantification is difficult, a qualitative summary is provided instead, indicating those technologies felt to be promising for future implementation and emissions reductions potential. In these papers, only the anticipated impact on energy consumption and barriers to further development can be shown. In every paper, a range of potential thermal and electrical savings is provided; this range has been reached through consultation with technical experts. Where INR costs are indicated, approximate USD equivalent costs have also been given, using exchange rate USD 1 = INR 50.

Users also downloaded

Showing related downloaded files

  • Publication
    Global Economic Prospects, January 2024
    (Washington, DC: World Bank, 2024-01-09) World Bank
    Note: Chart 1.2.B has been updated on January 18, 2024. Chart 2.2.3 B has been updated on January 14, 2024. Global growth is expected to slow further this year, reflecting the lagged and ongoing effects of tight monetary policy to rein in inflation, restrictive credit conditions, and anemic global trade and investment. Downside risks include an escalation of the recent conflict in the Middle East, financial stress, persistent inflation, weaker-than-expected activity in China, trade fragmentation, and climate-related disasters. Against this backdrop, policy makers face enormous challenges. In emerging market and developing economies (EMDEs), commodity exporters face the enduring challenges posed by fiscal policy procyclicality and volatility, which highlight the need for robust fiscal frameworks. Across EMDEs, previous episodes of investment growth acceleration underscore the critical importance of macroeconomic and structural policies and an enabling institutional environment in bolstering investment and long-term growth. At the global level, cooperation needs to be strengthened to provide debt relief, facilitate trade integration, tackle climate change, and alleviate food insecurity.
  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.
  • Publication
    Digital Progress and Trends Report 2023
    (Washington, DC: World Bank, 2024-03-05) World Bank
    Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.
  • Publication
    Global Economic Prospects, June 2025
    (Washington, DC: World Bank, 2025-06-10) World Bank
    The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.
  • Publication
    The Container Port Performance Index 2023
    (Washington, DC: World Bank, 2024-07-18) World Bank
    The Container Port Performance Index (CPPI) measures the time container ships spend in port, making it an important point of reference for stakeholders in the global economy. These stakeholders include port authorities and operators, national governments, supranational organizations, development agencies, and other public and private players in trade and logistics. The index highlights where vessel time in container ports could be improved. Streamlining these processes would benefit all parties involved, including shipping lines, national governments, and consumers. This fourth edition of the CPPI relies on data from 405 container ports with at least 24 container ship port calls in the calendar year 2023. As in earlier editions of the CPPI, the ranking employs two different methodological approaches: an administrative (technical) approach and a statistical approach (using matrix factorization). Combining these two approaches ensures that the overall ranking of container ports reflects actual port performance as closely as possible while also being statistically robust. The CPPI methodology assesses the sequential steps of a container ship port call. ‘Total port hours’ refers to the total time elapsed from the moment a ship arrives at the port until the vessel leaves the berth after completing its cargo operations. The CPPI uses time as an indicator because time is very important to shipping lines, ports, and the entire logistics chain. However, time, as captured by the CPPI, is not the only way to measure port efficiency, so it does not tell the entire story of a port’s performance. Factors that can influence the time vessels spend in ports can be location-specific and under the port’s control (endogenous) or external and beyond the control of the port (exogenous). The CPPI measures time spent in container ports, strictly based on quantitative data only, which do not reveal the underlying factors or root causes of extended port times. A detailed port-specific diagnostic would be required to assess the contribution of underlying factors to the time a vessel spends in port. A very low ranking or a significant change in ranking may warrant special attention, for which the World Bank generally recommends a detailed diagnostic.