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This methodology presents requirements for development and assessment of a standardized baseline for quantification of greenhouse gas (GHG) emission reductions in smallholder dairy systems. It also includes guidance for quantification of baseline GHG emissions from dairy production in a defined geographical area within a country, for quantification of with-project GHG emissions, leakage, and net emission reductions due to project implementation. The general approach outlined in the methodology is based on the following key elements. A standardized baseline for the project region is set on the basis of a baseline survey, which establishes a statistically robust relationship between milk yields and the GHG intensity of milk production measured as kg CO2 eq. per kg fat and protein corrected milk (FPCM).