Table 1.

Framework for assessing offset quality and climate benefits

Dimension	Indicator	Rule or standard illustratively used, coding framework and data source	Scientific basis in literature
1. Relative quality risks	Do credits come from offset project types with a lower likelihood of overstating their emissions reduction or additionality?	Categorisations of offset project types with a lower, medium and higher risk using the relative quality risks framework in the Quality Offsets Guide by the Stockholm Environmental Institute and GHG Management Institute15.	8,10,12,13,15,16
2. Age	Is the window between the offsetting activity and the time of retirement in line with industry standards?	Rule by Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) that excludes credits with a vintage year and project start year earlier than 2016.	15,21,32,75
3. Price	Does the credit come from offset project types that typically sell for above-average prices?	Estimates of the average price paid for offsets by project category from Ecosystem Marketplace76.	11,15,21
4. Country of implementation (applied to renewable energy projects)	Do credits derive from projects implemented in low-income countries where the diffusion of renewable energy is low and hampered by market or policy conditions?	(1) Rule by GS and VCS that limits eligible renewable energy projects to those located in a least developed country (LDC), and (2) Rule by GS that limits eligible renewable energy projects to those located in a low-income country or lower-middle income country where the penetration rate of the proposed energy technology is below 5%. Country classifications and data from World Bank79 and IRENA57.	12,13,58