PACHAMA INSIGHTS

Leakage risk

Assess the risk and potential impact of agricultural leakage caused by the project at a jurisdictional level.

Why leakage matters
Many projects take place on or near land that was used for crops or grazing until the project started. Leakage refers to when agricultural production is shifted elsewhere as a result of the project, leading to forest clearing for new agricultural land. Leakage can be a major source of emissions and impact credit integrity if not properly addressed.
Pachama’s evaluation approach
We combine data on the likelihood of commodity-driven deforestation with data on the carbon storage potential of forests within the same jurisdiction for each crop previously grown in the project and assign a leakage risk score, contextualized by domestic and international leakage risk for the same crop.
How you can use leakage insights
- Evaluate project leakage accounting before purchasing credits or making an investment.
- Check leakage risk accounting to prepare for validation.