A baseline approach is the basis for a baseline methodology. It is the approach to identifying the most plausible alternative scenario to implementation of the project activity (i.e. the baseline scenario).
The Executive Board agreed that the three approaches identified in sub-paragraphs 48 (a) to (c) of the modalities and procedures be the only ones applicable to CDM project activities. They are:
- Existing actual or historical emissions, as applicable, or
- Emissions from a technology that represents an economically attractive course of action, taking into account barriers to investment, or
- The average emissions of similar project activities undertaken in the previous five years, in similar social, economic, environmental and technological circumstances, and whose performance is among the top 20 per cent of their category (3/CMP.1, Annex, paragraph 48).