MAIN PRINCIPLES OF GS4GG: CSA, RE, LUF / AR
All Projects must align with the Vision and Mission of GS4GG Standard in order to attain Certification.
This alignment is achieved by adhering to the following 5 main principles and requirements:
| Principle 1 | Contribution to Climate Security & Sustainable Development |
| Principle 2 | Safeguarding Principles |
| Principle 3 | Stakeholder Inclusivity |
| Principle 4 | Demonstration of Real Outcomes |
| Principle 5 | Financial Additionality & Ongoing Financial Need |
PRINCIPLE 1 – Contribution to Climate Security & Sustainable Development
Projects must fall under pre-identified eligible types or undergo a review by the Gold Standard to determine their eligibility, are required to define their Baseline Scenario and Project Scenario, and should have a positive contribution to both Climate Security and Sustainable Development, with these impacts evaluated in alignment with the Sustainable Development Goals (SDGs). As part of the certification process, projects must make contributions to SDG 13 (Climate Action) along with minimum two additional SDGs.
- Baseline Scenario: A conservative scenario representing the conditions that would prevail if the project were not implemented.
- Project Scenario: The scenario that will be in place after the Project is fully implemented and operational.
PRINCIPLE 2 – Safeguarding Principles
Project developers are required to perform a Safeguarding Principles Assessment and adhere to the Safeguarding Principles & Requirements and Project also shows how it fulfills all relevant Requirements. These elements, are then incorporated into the Project Design Document, along with the Monitoring & Reporting Plan.
PRINCIPLE 3 – Stakeholder Inclusivity
Projects are required to recognize and involve Relevant Stakeholders, and if necessary, obtain input from Expert Stakeholders during the design, planning, and implementation phases. The project design must consider the perspectives and contributions of stakeholders, and continuous feedback should be solicited, documented, and acted upon throughout the Project’s duration.
*If needed, projects should also seek input from experts. Specific stakeholder consultation requirements are in place for hydropower, renewable biomass, and MSW incineration projects.
PRINCIPLE 4 – Demonstration of Real Outcomes
Projects must:
- Create and develop an initial Project Design Document (PDD) that includes a comprehensive Monitoring & Reporting Plan.
- Go through the Preliminary Review, Project Design Certification, and Performance Certification stages, adhering to the Principles and requirements – Obtain Design Certification (involving Validation and Design Review).
- Implement monitoring in accordance with the Monitoring & Reporting Plan and produce both Annual Reports and Monitoring Reports.
- Obtain Performance Certification (comprising Verification and Performance Review) to attain the status of a Gold Standard Certified Project. This allows for issuing Gold Standard Certified Impact Statements and Gold Standard Certified Products if desired
- Renew the Gold Standard Design Certification periodically to maintain the Certified Project status and continue seeking Gold Standard Certified Products and Impact Statements, if desired.
PRINCIPLE 5 – Financial Additionality & Ongoing Financial Need
All Projects are obligated to exhibit impacts that exceed those of their baseline scenario, meaning the benefits go beyond what would be expected under a business-as-usual situation, as outlined in Principle 1. Moreover, for Projects pursuing specific certification pathways (e.g., seeking financing or issuing market products through Gold Standard Certified Products or Impact Statements), they must also demonstrate Financial Additionality and an Ongoing Financial Need.
Principles & Requirements – Gold Standard for the Global Goals
ADDITIONALITY
The voluntary carbon market seeks to solve a market failure as without the financial funding from carbon credits or other relevant Certified Impact Statements and/or Products, projects that “contribute to climate security and sustainable development” (principle 1) will not be able to take place.
Thus, a key principle (number 5) requires projects to demonstrate “Financial Additionality and Ongoing Financial Need”.
- To qualify as a genuine carbon offset, the reductions achieved by a project need to be “additional” to what would have happened if the project had not been carried out (e.g., continued as business-as-usual).
Principle 5: Financial Additionality & Ongoing Financial Need
“All Projects must demonstrate impacts that are additional as compared to their baseline scenario (i.e., the benefits of the Project are beyond a business-as-usual scenario) as covered in Principle 1…”
“… Projects following certain certification pathways (i.e., those seeking to use certification to attract finance or issue market products through the issuance of Gold Standard Certified Products or Impact Statements) shall demonstrate Financial Additionality and Ongoing Financial Need.”
Note:
- Regular VER projects if submitted within one year of their start date do not have to demonstrate additionality.
- Registered CDM projects also do not have to demonstrate additionally.
ADDITIONALITY FOR *RENEWABLE ENERGY ONLY
