AFOLU Project Market Leakage
14. Agriculture, Forestry, Land Use
The AFOLU Project Market Leakage Module can be used by any AFOLU project type to quantify a market leakage value that can be applied as a component of an applicable methodology. Market leakage associated with the production of agricultural, livestock and forest commodities linked to markets are assessed by the module.
Market leakage is quantified based on the amount of production that may shift elsewhere in the jurisdiction, which can be reduced through mitigation achieved by the project. Leakage mitigation may include increasing production within known locations through intensifying agricultural production, increasing commodity yields, shifting production to marginal lands and/or decreasing demand for commodities. Any leakage mitigation achieved reduces the amount of production subject to leakage, determined based on a baseline amount of production for the project. For production that would be displaced to other areas, the module uses a number of default values and project data to estimate the market leakage emissions.