This report constructs a decision framework that can be applied to all electricity projects. No single methodology can suit all the potential diversity of the Kyoto Protocol’s Clean Development Mechanism projects in the electricity sector, which span a wide range of scales, fuels, and technologies and will take place in a varied set of electric sector contexts, both on and off the grid. This paper proposes a three-category framework for the different projects, with baseline and additionality methods specific to each, in order to balance the objectives of low transaction costs and environmental accuracy.