Greenhouse gas (GHG) reduction projects implemented at European Union Member States in non-Emissions Trading Scheme (ETS) sectors are referred to as domestic offset (DO) projects. The aim of this article is the presentation of DO projects implementation modalities, their interactions with subsidy programs and the analysis of impacts on their financial profile. This article argues that although DOs would not bring EU Member States closer to their Kyoto Protocol targets, they could enhance the roll-out of new low-carbon technologies which would result in extra energy and GHG reduction gains on top of the carbon credits that link DOs to the EU ETS.
