Voluntary Carbon Market Project Eligibility
Carbon offset markets exist both under compliance schemes and as voluntary programs. Compliance markets are created and regulated by mandatory regional, national, and international carbon reduction regimes, such as the Kyoto Protocol and the European Union’s Emissions Trading Scheme. Voluntary o¬ffset markets function outside of the compliance markets and enable companies and individuals to purchase carbon o¬ffsets on a voluntary basis.
Project eligibility for the voluntary carbon market depends on which standard is applied. However, typically, the eligibility criteria are similar to those of the CDM project eligibility criteria:
1. Reduction in GHG Emissions covered by the Kyoto Protocol (CO2, CH4, N2O, SF6, HFCs, PFCs)
2. Contribution to Sustainable Development of Rwanda
3. Additionality (demonstration that the project would not have happened without the incentive from carbon credit revenue)
4. Emission reduction must be real, measurable and long term
5. Sector must be eligible (eligible project types are standard dependent)