Step 5 - Leakage scenario

Leakage is when the carbon-reducing project activities cause an increase in carbon emissions elsewhere. Not every project causes leakage. However, every project needs to consider whether their project is or is not causing any significant leakage. If the project does cause leakage this needs to be translated into carbon so that it can be added to the carbon-benefit model under step 6. Projects need to describe the aspects below:

  1. Is there any leakage expected?

  2. In case there is leakage, what does this constitute and what is the expected carbon emission from this.

Unless any significant leakages arise out of the analysis herein, Coorest will not be taking into account any leakages for the calculation of the carbon benefit in accordance with the present CCS, as it is considered that any potential leakages are covered by either or both of the following:

  • The carbon absorbed by the 10% of backup plants that are not tokenized; and

  • The carbon that will be absorbed by the plants subject to onboarding after the period of 20 years, as Coorest only tokenizes plants and absorbed carbon for such period. Thereinafter, the plants will still continue absorbing carbon, and such carbon will not be tokenized by Coorest.

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