National/sectoral policies

In establishing a baseline, project participants are required to take into account any relevant national or sectoral policies and circumstances relevant to the project.  This includes, for example, sectoral reform initiatives, the local availability of fuel and the local availability of new technologies:

A baseline shall be established taking into account relevant national and/or sectoral policies and circumstances, such as sectoral reform initiatives, local fuel availability, power sector expansion plans, and the economic situation in the project sector. Key factors that affect a baseline shall be taken into account, e.g.:

  1. Sectoral reform policies and legislation;
  2. Economic situation/growth and socio-demographic factors in the relevant sector as well as resulting predicted demand. Suppressed and/or increasing demand that will be met by the project can be considered in the baseline as appropriate (e.g. by assuming that the same level of service as in the project scenario would be offered in the baseline scenario);
  3. Availability of capital (including investment barriers);
  4. Local availability of technologies, skills and know-how and availability of best available technologies in the future;
  5. Fuel prices and availability;
  6. National and/or subnational expansion plans for the energy sector, as appropriate;
  7. National and/or subnational forestry or agricultural policies, as appropriate (Guidance on criteria for baseline setting and monitoring, JISC 4, Annex 6, paragraph 22).

Related topics

What is a baseline?

What is additionality?

Establishing a baseline

Project participant

Project design document

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