Avoided Emissions
Definition
Avoided Emissions are Greenhouse Gas Emissions reductions that the financed project produces versus what would have been emitted in the absence of the project (the baseline emissions).
In the context of the Standard, avoided emissions are only from Renewable Energy and Energy Efficiency projects.
The TCFD (2017b) asks that avoided GHG emissions through the entire product life cycle should be disclosed by companies but does not specify any guidance on how exactly this should be reported. Measuring avoided emissions at a portfolio level therefore needs profound knowledge of ongoing and future energy efficiency and emission reduction projects within the investee companies, as well as an understanding of the relevant business-as-usual scenarios, which, in theory, could be different for every company. [1]
As defined in[2]
