Are US renewable energy projects eligible under the VCS?
US renewable energy projects are eligible under the VCS. However, such projects can be competitive with conventional energy sources (e.g., wind power projects in specific parts of the country) so it is important that projects clearly demonstrate their additionality. It is therefore expected that an investment analysis is applied, not just a barrier analysis (step 2, not just step 3, when using the CDM additionality tool). Other than in exceptional circumstances, just presenting a barrier analysis is not considered sufficient to demonstrate the additionality of US renewable energy projects. Likewise, the common practice analysis (step 4 of the CDM additionality tool) should be carefully followed to show that the project is not common practice. For example, given the prevalence of wind projects in specific parts of the country, a wind project would need to show clearly why it faces barriers not faced by other wind power projects in the region and why it is unique compared to those other
