GCC Opens Consultation on Standard for Setting Baselines Below Business-As-Usual (BAU) V1.0
The Global Carbon Council (GCC) has opened a public consultation on the draft GCC 2.0 Standard for Setting Baselines Below Business-As-Usual (BAU) V1.0, inviting stakeholders to provide input and feedback.
The proposed standard establishes requirements for setting crediting baselines below a conservatively determined Business-As-Usual (BAU) baseline. The framework aims to strengthen environmental integrity, support alignment with evolving international carbon market requirements, and encourage increasing climate ambition over time.
About the Standard
Baselines are a critical component of carbon market mechanisms, serving as the reference level against which greenhouse gas (GHG) emission reductions or removals are quantified.
The draft standard introduces a structured approach for determining below-BAU crediting baselines for GCC project activities. It establishes requirements for identifying conservative BAU scenarios, applying baseline adjustments where necessary, and ensuring that credited emission reductions remain credible and environmentally robust throughout the project crediting period.
Key Features of the Draft Standard
Conservative Business-As-Usual (BAU) Baseline Determination
The standard introduces requirements for determining a conservative BAU baseline using historical performance, economically viable alternatives, host-country standardized baselines, or other justified approaches.
This helps ensure that baseline emissions or removals are not overestimated and that credited climate benefits remain credible.
Alignment with National Policies and Climate Targets
The framework requires consideration of applicable national and sub-national policies, sector-specific targets, and relevant climate commitments when establishing BAU scenarios.
This supports alignment between carbon market activities and broader climate policy objectives.
Baseline Adjustment Factor (BAF)
The draft standard introduces a Baseline Adjustment Factor (BAF) to ensure that crediting baselines remain below BAU levels.
The adjustment may be derived from host-country sector-specific targets, national emission reduction targets, or a default value where such targets are unavailable. This approach helps promote ambition and strengthen environmental integrity.
Encouraging Increasing Ambition Over Time
A key principle of the standard is that crediting baselines should decrease over time. By incorporating adjustment mechanisms and periodic reassessment at crediting period renewal, the framework encourages project activities to contribute to progressively more ambitious climate outcomes.
Comparison and Selection of Crediting Baselines
The standard establishes procedures for comparing methodology-derived baselines with conservatively determined BAU baselines and selecting the more conservative option where required.
This helps ensure that credited emission reductions continue to reflect genuine climate benefits throughout the crediting period.
Scope and Applicability
The draft standard applies to GCC project activities seeking the CORSIA Market Eligibility Label (C+) and may also be applied in the development of new GCC methodologies and revisions to existing methodologies.
The framework is intended to be used in conjunction with applicable GCC methodologies and relevant GCC Program standards to support transparent and consistent baseline setting across project activities.
Supporting High-Integrity Carbon Markets
By establishing a transparent framework for setting crediting baselines below BAU, GCC aims to further strengthen the credibility of carbon credits and support the development of high-integrity carbon markets.
The proposed approach promotes conservativeness, transparency, and increasing ambition while supporting alignment with international carbon market developments, including Article 6 of the Paris Agreement.
Call for Stakeholder Feedback
GCC invites stakeholders, including project developers, Validation and Verification Bodies (VVBs), policymakers, carbon market participants, and climate experts, to review the draft standard and provide feedback during the consultation period.
Inputs received will play an important role in refining the standard and ensuring that it remains practical, transparent, and effective while maintaining the highest standards of environmental integrity.
How to Participate in the Public Consultation
📅 Public consultation period
🗓 Deadline to comment: 16th July 2025
✉️ Submit comments to: operations@globalcarboncouncil.com
All submissions will be reviewed by GCC’s Regulatory Committees during the finalization process.
