VALIDATION REPORT FOR GOLD STANDARD REGISTRATION

Transcription

1 VALIDATION REPORT FOR GOLD STANDARD REGISTRATION CARBON ASSET MANAGEMENT SWEDEN AB JILIN ZHENLAI MALI WIND POWER PROJECT Report No: /191 GS Date: TÜV NORD CERT GmbH JI/CDM Certification Program Langemarckstrasse Essen, Germany Phone: Fax: Page 1 of 32

2 Date of first issue: Project No.: /191 Final Approval by: Organisational unit: Martin Saalmann TÜV NORD JI/CDM Certification Program Client: Carbon Asset Management Sweden AB Client ref.: Mr. Von Zweigbergk Summary: positive validation opinion negative validation opinion Carbon Asset Management Sweden AB has commissioned the TÜV NORD JI/CDM Certification Program (CP) to carry out the validation for Gold Standard (GS) CDM project: Jilin Zhenlai Mali Wind. The Gold Standard Documentation and supporting documents were reviewed against the criteria as set out in the Gold Standard Requirements, the Gold Standard Toolkit and respective Annexes,. The findings and conclusions on the project s compliance with the Gold Standard are recorded in this document. However, this document must be seen in conjunction with the CDM validation report /VAL/. In the course of the validation for GS registration 3 Corrective Action Requests (CARs) and 2 Clarification Requests (CLs) were raised and successfully closed. In detail the conclusions can be summarized as follows: The project meets all eligibility criteria set by the GS foundation The project involves the adaption of a new technology The project does not result in negative social, environmental and/or economic impacts The project contribution to Sustainable Development is determined The project additionality is sufficiently justified in the PDD and GS Passport The project does not result in diversion of ODA Conservative assumptions were applied in the project description The monitoring plan of SD parameters is transparent and adequate The project meets the stakeholder consultation requirements The conclusions of this report show, that the project, as it was described in the project documentation, is in line with all criteria applicable for the validation. Report No.: Subject Group: /191 GS Climate Protection Indexing terms Report title: Jilin Zhenlai Mali Wind Work carried out by: LI Yong Jun YAN Tao YU Wei Ming Final technical review by: Local technical review by Martin Saalmann - Emilio Martín Date of this revision: Rev. No.: Number of pages: Sustainable Development GS2 Toolkit / GS2 Requirement GS Validation No distribution without permission from the client or responsible organisational unit Limited distribution Unrestricted distribution Page 2 of 32

3 Abbreviations CAR Corrective Action Request CDM Clean Development Mechanism CER Certified Emission Reduction CO 2 Carbon dioxide CO 2e CP CL DNA EB EIA FAR GHG GS GSD IPCC SD PDD UNFCCC VAL VVM Carbon dioxide equivalent Certification Program Clarification Request Designated National Authority CDM Executive Board Environmental Impact Assessment Forward Action Request Greenhouse gas(es) Gold Standard Gold Standard Documents Intergovernmental Panel on Climate Change Sustainable development Project Design Document United Nations Framework Convention on Climate Change CDM Final Validation Report Validation and Verification Manual Page 3 of 32

4 Table of Contents Page 1 INTRODUCTION TECHNICAL PROJECT DESCRIPTION COMMENTS BY PARTIES, STAKEHOLDERS AND NGOS METHODOLOGY AND VALIDATION SEQUENCE VALIDATION ASSESSMENT SUMMARY REFERENCES GOLD STANDARD VALIDATION FINDINGS...15 ANNEX 1: VALIDATION PROTOCOL...21 Page 4 of 32

5 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS 1 INTRODUCTION Carbon Asset Management Sweden AB has commissioned the TÜV NORD JI/CDM Certification Program (CP) to carry out the validation for Gold Standard (GS) CDM project: Jilin Zhenlai Mali Wind. The purpose of this validation is to have an independent third party assess the project s compliance with the GS requirements as described in the Gold Standard Documentation and supporting documents by Carbon Asset Management Sweden AB and Jilin Huaneng Renewable Energy Co., Ltd. The Gold Standard Documentation and supporting documents were reviewed against the criteria as set out in the Gold Standard Requirements, the Gold Standard Toolkit and respective Annexes,. The findings and conclusions on the project s compliance with the Gold Standard are recorded in this document. However, this document must be seen in conjunction with the CDM validation report /VAL/. Relevant Gold Standard criteria to be covered during this validation are: Eligibility of the project with relevant GS criteria Technological transfer Do No Harm Assessment Contribution to Sustainable Development Compliance with GS requirements w.r.t. the additionality screen Application of conservative assumptions Monitoring of sustainable development parameters Environmental Impacts Stakeholder consultation requirements The validation is based on the information made available to TÜV NORD JI/CDM CP and on the contract conditions. TÜV NORD JI/CDM CP can not be held liable by any entities for making its validation opinion based on any false or misleading information supplied to it in the course of validation. The validation is not meant to provide any consulting to the project participants. However, stated requests for clarifications and/or corrective actions may provide input for improvement of the project design. Page 5 of 32

6 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS 2 TECHNICAL PROJECT DESCRIPTION The Jilin Zhenlai Mali Wind is located in Zhenlai County, Baicheng City, Jilin Province, P.R.China. The geographical coordinates have been specified as longitude " E and latitude " N, which has been confirmed in CDM validation report /VAL/. It involves the installation of 33 turbines, each of one has a rated output of 1500kW, providing a total capacity of 49.5MW. The annual output of the proposed project is estimated to be 101,696MWh. The electricity generated will be sold to Northeast China Power Grid. The start date of construction of the project is and expected lifetime of 20 years /PDD-2/. Further key parameters of the project are given in the CDM Validation Report /VAL/. Page 6 of 32

7 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS 3 COMMENTS BY PARTIES, STAKEHOLDERS AND NGOS According to the modalities for the validation of CDM projects, TÜV NORD JI/CDM CP published the draft PDD on the dedicated UNFCCC website MTL/view.html on and invited comments within 30 days, until by parties, stakeholders and UNFCCC accredited non-governmental organisations. Apart from UNFCCC requirements /unfccc/, the documents like Jilin Zhenlai Mali Wind GS Stakeholder consultation report Version 2, Mali GS687 Main part of EIA, Mali GS687 EIA approval, Mali GS687 GS Passport , Mali GS687 PDD and Mali GS687 Non-technical Summary etc. are all published on the website on /gs/ and invited comments until , as per the Gold Standard requirements /GSI/. Besides, the local stakeholder consultation meeting was held in the project Office building on and the feedback round started from by the means of invitation, invitation poster in a public local and written invitation letters, /GSI/, /IEF/. No comment has been received from UNFCCC or GS website. Page 7 of 32

8 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS 4 METHODOLOGY AND VALIDATION SEQUENCE The GS validation of the project encompasses the following Validation Steps: Contract review Appointment of team members and technical reviewers Publication of the project documentation A desk review of the PDD, and Gold Standard Documents submitted by the client and additional supporting documents with the use of customised validation protocol /CPM/ according to the Validation and Verification Manual /VVM/ and Gold Standard Requirements /GS-R/, Validation planning, On-Site assessment, Background investigation and follow-up interviews with personnel of the project developer and its contractors, Draft validation reporting Resolution of corrective actions (if any) Final validation reporting Technical review Final approval of the validation. Since the Jilin Zhenlai Mali Wind GS stakeholder consultation report was uploaded on GS website on , the GSV2 documents are applied as guidance /GS-L, P, R, T/, the version of guidance is assessed to be appropriate. Further details to the methodology and validation sequence is given in the CDM Validation Report /VAL/. Page 8 of 32

9 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS 5 VALIDATION ASSESSMENT SUMMARY Carbon Asset Management Sweden AB has commissioned the TÜV NORD JI/CDM Certification Program (CP) to carry out the validation for Gold Standard (GS) CDM project: Jilin Zhenlai Mali Wind. The Gold Standard Documentation and supporting documents were reviewed against the criteria as set out in the Gold Standard Requirements, the Gold Standard Toolkit and respective Annexes,. The findings and conclusions on the project s compliance with the Gold Standard are recorded in this document. However, this document must be seen in conjunction with the CDM validation report /VAL/. In the course of the validation for GS registration 3 Corrective Action Requests (CARs) and 2 Clarification Requests (CLs) were raised and successfully closed. In detail the conclusions can be summarised as follows: The project meets all eligibility criteria set by the GS foundation The project involves the adaption of a new technology The project does not result in negative social, environmental and/or economic impacts The project contribution to Sustainable Development is determined The project additionality is sufficiently justified in the PDD and GS Passport The project does not result in diversion of ODA Conservative assumptions were applied in the project description The monitoring plan of SD parameters is transparent and adequate The project meets the stakeholder consultation requirements The conclusions of this report show, that the project, as it was described in the project documentation, is in line with all criteria applicable for the validation. Essen, Essen, Mr. Li Yongjun Senior Assessor TÜV NORD JI/CDM Certification Program Validation Team Leader Martin Saalmann Senior Assessor TÜV NORD JI/CDM Certification Program Final Approval Page 9 of 32

10 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS 6 REFERENCES Table 6-1: Reference /AEIA/ /AFSR/ Documents provided by the project participant Document Approval of Environment Impact Assessment, issued by Environmental Protection Bureau of Jilin Province, date: Approval of Feasibility Study Report, date: /EIA/ Environment Impact Assessment, date: Apr /FP/ Loan intention letter approved by China construction Bank on Financing Plan made based on FSR and loan intention letter, finalised on the fourth board meeting on /FSR/ Feasibility Study Report of Project, dated July 2008 /GSI/ GS Passport for Huaneng Zhenlai Mali Wind. 1. Mali GS687 GS passport on ; 2. Mali GS687 GS passport on Global Stakeholder Invitation period 1. Screen shot for GS for in GS website, documents including LSC meeting report, PDD uploaded for GSP, revised Passport according to GS member s comments, and copies of main parts of EIA, and the Project and summary of the LSC meeting required by GS. The completed uploading starts from date The stakeholder documents available until , which are invisible afterwards. /HCA/ Host Country Approval from Chinese DNA, dated /IEF/ Invitation s and Feedback samples for 2 nd round stakeholder consultation. /MM/ /ODA/ Management and Monitoring Manual Declaration of Non-Use of Official Development Assistance by Project Proponent Project Design Document Jilin Zhenlai Mali Wind 1. Draft PDD, Version 02, dated ; 2. Final PDD, Version 03, dated Page 10 of 32

11 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS Reference Document /PHT/ feff/shcp/ Photographs of Project Site Stakeholder consultation process evidences: 1. Attendance Register of Stakeholder Consultation Meeting; 2. Minute of SD Stakeholder Consultation Meeting on ; 3. Photographs of Stakeholder Consultation Meeting; 4. Samples of Questionnaires. Stakeholder consultation reports: Jilin Zhenlai Mali Wind GS stakeholder consultation report 1. First version submitted to GS group on ; 2. Version 2, uploaded on , revised according to GS expertise, the version was published for stakeholder comments until ; 3. Version 3, revised the description a little, dated on Table 6-2: Reference /ACM2/ /CPM/ /GS-L/ /GS-P/ Background investigation and assessment documents Document ACM0002: Consolidated baseline methodology for grid-connected electricity generation from renewable sources (version 09) TÜV NORD JI / CDM CP Manual (incl. CP procedures and forms) Gold Standard Local Stakeholder Consultation Report Template Gold Standard Passport Template /GS-R/ Gold Standard Requirements (version 2.0) /GS-T/ Gold Standard Toolkit (version 2.0) /IPCC/ /MA/ 2006 IPCC Guidelines for National Greenhouse Gas Inventories Decision 3/CMP.1 (Modalities and procedures for a clean development mechanism as defined in Article 12 of the Kyoto Protocol) /TA/ Tool for the demonstration and assessment of additionality (Version 5.2) /VAL/ TÜV NORD Final Validation Report for CDM Request for Registration, No: /191 dated /VVM/ Validation and Verification Manual (version 1.1; EB 51) Page 11 of 32

12 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS Table 6-3: Websites used Reference Link Organisation /cd4cdm/ UNEP Riso Centre /dna/ /gs/ lish/index.asp e/projectdoc/editprojectdoc. asp?id1=687#top National Development and Reform Commission (DNA of China) Gold Standard Foundation Mali GS687 documents /ipcc/ IPCC publications /unfccc/ UNFCCC Page 12 of 32

13 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS Table 6-4: List of interviewed persons Reference MoI 1 Name Organisation / Function /IM01/ V Mr. Ms /IM01/ V Mr. Ms /IM01/ V Mr. Ms /IM01/ V Mr. Ms /IM01/ V Mr. Ms /IM02/ V Mr. Ms /IM02/ V Mr. Ms /IM03/ V Mr. Ms /IM03/ T Mr. Ms. /IM04/ V Mr. Ms. /IM04/ V Mr. Ms. /IM04/ V Mr. Ms. /IM04/ V Mr. Ms. /IM05/ V Mr. Ms. Chen, Daming Qin, Yuzhi Zhang, Wei Wang, Lu Li, Bo Wang, Chengfeng Gao, Dongmei Chen, Xi Sun, Xiu Cai Zang, Jincai Sun, Zhongbin Wang, Dachun Zhang, Xizhen Xie, Yi Jilin Huaneng Renewable Energy Co., Ltd./ Vice general manager & CDM director Jilin Huaneng Renewable Energy Co., Ltd./ Vice director of power plant Jilin Huaneng Renewable Energy Co., Ltd./ Director of generation dept. of power plant Jilin Huaneng Renewable Energy Co., Ltd./ Technician Jilin Huaneng Renewable Energy Co., Ltd./ Technician Reform and Development Council of Zhenlai County/ Vice director Reform and Development Council of Zhenlai County/ Director of price dept. Environmental Protection Bureau of Zhenlai County/ Chief of Environmental Supervision Dept. Environmental Protection Bureau of Zhenlai County/ Environmental Supervision Dept. Xinli Village/ Local resident Xinli Village/ Local resident Xinli Village/ Local resident Xinli Village/ Local resident Beijing Nengtai Star Power technical Co, Page 13 of 32

14 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS Reference MoI 1 Name Organisation / Function Ltd./ Consultant /IM06/ V Mr. Ms. /IM06/ V Mr. Ms. /IM07/ T Mr. Ms. Wu, Huiguo Lin, Shunrong Liu Chun Lei Carbon Asset Management Sweden AB/ Technical manager Carbon Asset Management Sweden AB/ Project manager Environmental Protection Association of Zhenlai County / Leader 1) Means of Interview: (Telephone, , Visit) Page 14 of 32

15 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS 7 GOLD STANDARD VALIDATION FINDINGS In the following table the findings from the desk review of the published GS passport, GS stakeholder consultation report, visits, interviews and supporting documents are summarised: Finding Classification CAR FAR CL None Description of finding Regarding to the project additionality, it is based on benchmark analysis according to the methodology ACM0002 and additionality tool. However, during the validation process the DOE found that the investment parameters were not sufficiently justified. Corrective Action #1 B1 The selected similar wind farms in PDD Table 6 didn t meet the defined criteria. Please refer also to CAR B3 raised in the CDM validation report. 1. Please refer to CDM Final Validation Report for CDM part. 2. The criteria for the common practice analysis are added in Step 4 of Section B.5 in revised PDD, which has been submitted for registration on 11/02/2010 with reference No. 3314, detailed as: - Wind power project in the provincial level (Jilin Province) as the investment circumstance, policies and regulations and natural sources of each province are different; - Wind power projects put into operation after 2002 as a reform on the electric power sector taken place in the end of According to the statistic of installed capacity of wind power in China released by China Wind Energy Association and referring to the UNFCCC website, all similar projects in Jilin Province are registered CDM projects or projects under GSP. So it can be seen that the project without the support of carbon credits is not a common practice in Jilin Province. Page 15 of 32

16 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS Finding DOE Assessment #1 Conclusion B1 1. The financial parameters have been successful justified in final PDD and assessed to be appropriate in CDM validation report /VAL/, where an in-deep assessment following the Verification and Validation Manual requirements has been done. The DOE concludes that the references are up-to date and the assumptions are reasonable. 2. The explanation above regarding the selected criteria for the common practice analysis is reasonable. The criteria that projects considered have been implemented from year 2002 onwards and located in Jilin Province are generally adopted in the common practice analysis in Chinese CDM projects. TÜV NORD confirms that the investment environment changes in the year 2002 due to electricity sector reform. Hence, projects implemented before are not considered similar. The geographical boundary limited to Jilin Province is also acceptable since the Province is already huge and policy regulations are also approved on provincial level. Therefore TÜV NORD accepted the common practice approach. Therefore, CAR B1 can be closed. To be checked during next periodic verification Appropriate action was taken GSD was corrected correspondingly Appropriate was action not taken The project complies with the requirements Finding Classification CAR FAR CL None Description of finding The financing plan is pending during site visiting. Submission is requested. Corrective Action #1 The financing plan is provided, which is consistent with the approved FSR and FSR approval, please check. DOE Assessment #1. The financing plan /FP/ is finalized during CDM decision meeting, which is based on FSR and Bank loan intention /BL/, the financing plan clearly shows the non financing from ODA. The documents are submitted according to checklist 3.4 of GSv2 toolkit. Conclusion B2 CAR B2 can be closed. To be checked during next periodic verification Appropriate action was taken GSD was corrected correspondingly Appropriate was action not taken The project complies with the requirements Finding C1 Page 16 of 32

17 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS Finding C1 Classification CAR FAR CL None Description of finding The invitation of stakeholder lacks local NGO, please refer to GS toolkit: 2.6 Organise and report local stakeholder consultation. Corrective Action #1 During the preparation of the invitation for the First Local Stakeholder Consultation Meeting, we did not find any relevant local NGO in Jilin Province. So WWF China and Greenpeace China were chosen as local NGOs instead. After the meeting, the local GS expert recommended us to use the available source to try to find local NGOs if possible. According to that, we found 4 local NGOs trough the website, and then invited them on 23/09/2009 to involve in the stakeholder Feedback Round, which are : - Jilin Province Desertification Treatment Foundation - Green Cross - Han Hai Sha - Tongyu Horqin Sandy Land Management Division DOE Assessment #1 There are no comments received from local NGOs during period of at least two months since feedback started, and before the validation finalised. The screen shot of s sent to local NGOs are reviewed, which has been corrected described in GS passport /IEF/,. During on-site stakeholder interviewing, it is confirmed that there is only one community for environmental protection, but no local NGOs in Zhenlai county /IM03/, /IM07/. The community was invited as stakeholder in the feedback round. Besides, in the updated GS Passport, members from local NGOs are invited in the feedback round, e.g. sent stakeholder invitation letter to local people in REEEP, Mercy Corps, Greenpeace and WWF, since HELIO International only has one general address, the letter could be forwarded by the NGO organization. The stakeholder invitation letters for the local NGOs have been checked /IEF/. Conclusion Thus CAR C1 can be closed. To be checked during next periodic verification Appropriate action was taken GSD was corrected correspondingly Appropriate was action not taken The project complies with the requirements Finding C2 Classification CAR FAR CL None Page 17 of 32

18 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS Finding C2 Description of finding The stakeholder feedback round has been commenced during validation. The feedback will be closed by , which is later than on-site validation. Therefore, the necessary documentation is pending. Corrective Action #1 The feedback round was started during on-site validation, thus necessary documents were unavailable to be provided at that time. During the feedback round, all stakeholders invited for participation in the First Local Stakeholder Consultation Meeting, local or regional offices of the 5 international GS NGO Supporters: REEEP, Mercy Corps, Greenpeace, WWF, HELIO International, and local NGOs in Jilin Province and one local non-profit voluntary community for environmental protection were invited by different means and encouraged to make comments on the Local Stakeholder Consultation Meeting Report (LSC meeting report) and other project documents provided. All necessary documents i.e. LSC meeting report, PDD uploaded for GSP, revised Passport, and copies of main parts of EIA, and other documents i.e. non-technical summary of the Project and summary of the LSC meeting was uploaded to the Registry since 18/09/2009, have been made public available (with Chinese version) to stakeholders for comments over two months before the validation of the Project finalized. The outcome of feedback round has no negative comments received from the stakeholders, and all comments received shows stakeholders have positive attitude to and support the project activity. DOE Assessment #1 For details please refer to the revised Passport and all related documents are available and provided to DOE. By reviewing Mali GS uploading screen shot, the date of the feedback round is confirmed /GSI/. The invitation s to local NGOs used in the feedback round have been checked /IEF/. Besides, the invitation list has been updated in GS passport. According to on-site invitation /IM01/~/IM06/ and feedback samples /IEF/, the DOE assesses that the description of feedback round is appropriate /GSI/. Conclusion CL C2 can be closed. To be checked during next periodic verification Appropriate action was taken GSD was corrected correspondingly Appropriate was action not taken The project complies with the requirements Finding C3 Classification CAR FAR CL None Page 18 of 32

19 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS Finding C3 Description of finding The international stakeholder procedure is not clearly described, including how to decide certain organization/individual, how many days are defined as the comments open period, etc. Corrective Action #1 Invitation s were sent to all GS NGO supporters at that time when doing invitation for the initial local stakeholder consultation meeting. DOE Assessment #1 Except the comments and feedbacks received from stakeholders participated in meeting described above, there were no comments or feedbacks received from other stakeholders (GS NGO supporters, GS expert and China DNA) who were invited for joining in the meeting but did not attend until 23/09/2009 which is the date when feedback round started. The screen shot of invitation , photos of public notifications and letters are attached in the revised GS Passport. It shows the invitation manner of the local stakeholder. The invitation letters were sent out on , and the notifications were posted in the local public building on The feedback round closed on /GSI/. The period is longer than two months, which is assessed to be sufficient. It is confirmed that the project has been published in UNFCCC for one month, and GS website for international stakeholder comments from and no comments were received /unfccc/, /gs/. The invitation tracking table in GS passport clearly listed the means and date of invitation. Conclusion CL C3 can be closed. To be checked during next periodic verification Appropriate action was taken GSD was corrected correspondingly Appropriate was action not taken The project complies with the requirements Page 19 of 32

20 TÜV NORD CERT GmbH JI/CDM Certification Program P-No.: /191 GS ANNEX A1: Validation Protocol Page 20 of 32

21 TÜV NORD JI/CDM Certification Program P-No: /191 GS ANNEX 1: VALIDATION PROTOCOL Gold Standard requirements checklist for CDM projects Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS Ref. Draft Final A. Project Eligibility Screen A.1. The project type is assessed A.1.1. Is the Project activity a renewable energy or End use energy efficiency improvement project? The project activity is a renewable energy project. This is an eligible project type under the Gold Standard Requirement. /IM01/ /GS-R/ A.1.2. Has the host country a quantitative reduction target under the Kyoto Protocol? The host country is China, which has no quantitative reduction target under the Kyoto protocol. /unfccc/ A.1.3. Which size has the project per definition of the GS requirements (Micro-, Small-, Large Scale)? According to /GS-R/, Large-scale and small-scale project activities are defined in accordance with UNFCCC rules, the project is a large scale project. /GS-R/ /unfccc/ A.1.4. Is the project activity a bundle and are all project activities that are part of this bundle eligible under GS? No, the project activity is not a bundle. /IM01/ N/A N/A B. Additionality Screen B.1. Public Announcement Check B.1.1. Has the project, in its current design, previously been publicly announced to go ahead without the CDM, prior to any payment being need for the No public announcements for emission reduction have been made about the project going ahead without CDM. However, the current design of the project has been /GS-R/ Page A-21

22 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD implementation of the project? COMMENTS informed to local stakeholder during consultation process prior to the CDM and implementation of the project by the project owner according to GS requirement. Ref. Draft Final B.1.2. If the project is a Micro Scale project, is a written statement included, that the project has not been announced for implementation without seeking carbon finance during the last 3 years? Not applicable, as the project is a large-scale project. N/A N/A B.2. Additionality tool Check B.2.1. B.2.2. Is the Tool for the demonstration and assessment of additionality of the UNFCCC used in its currently available version? Is the tool in its totally used and are the additionality documents satisfactory? The additionality argumentation is based on the Tool for the demonstration and assessment of additionality version 5.2. Yes. According to the methodology ACM0002 and additionality tool, a benchmark analysis was chosen under the condition of the project activity. The benchmark selected was 8% with reference to Economic Assessment Method and Parameters for Construction Projects (Ver.03, released by the National Development and Reform Commission and the Ministry of Construction, P.R. China in 2006) and Interim Rules on Economic Assessment of Electrical Engineering Retrofit Projects ( released by China State Power Corporation in 2003). That is widely adopted in windpower projects in China. /TA/ /unfccc/ /ACM2/ /TA/ /unfccc/ Page A-22

23 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD B.2.3. Are the main arguments reasonable and evidenced? COMMENTS By reviewing the documents involved in project application procedure, such as FSR, EIA and their approvals, the project eligibility was approved. From stakeholder consultation records, the main arguments of the project SD are valid. Regarding the project additionality, it is based on benchmark analysis according to the methodology ACM0002 and additionality tool. However, the financial parameters used in the IRR calculation will be assessed in the Final validation report. The conclusion will be given based on opinion in Final Validation. Ref. /ACM2/ /AEIA/ /AFSR/ /HCA/ /IM01/ /ODA/ /SHCP/ /TA/ /XLS/ Draft CAR B1 Final B.2.4. B.2.5. Are all references up-to date and reliable? Is the project activity compared to the normal practice in the region? The conclusion will be given by referring the final validation report. Please refer to B.1.5. The selected similar wind farms in PDD Table 6 didn t meet the defined criteria. Please refer to CAR B1. /IM01/ /IM01/ to /IM06/ CAR B1 CAR B1 B.2.6. Are all assumptions (quantitative or qualitative) used to demonstrate the additionality conservative? B.3. ODA Additionality check Please refer to B.2.3 and CAR B1. /IM01/ to /IM06/ CAR B1 B.3.1. Is a clear and transparent financing According to checklist 3.4 of GS toolkit and the CAR Page A-23

24 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD plan submitted which allows an assessment of whether the project financing includes ODA? COMMENTS announcement of non-oda, a financing plan should be validated by DOE. However, the financing plan is pending during site visiting. Submission is requested. Ref. /ODA/ Draft B2 Final B.3.2. Is ODA used for the project activity and if yes is the funding eligible for the GS? B.4. Conservative Approach Check So far declarations of Non-Use of Official Development Assistance have been submitted by the project owner in order to meet the respective GS requirements. The declarations are in line with the template requirements of Annex D to the GS toolkit. However, financing plan is pending. /ODA/ /IM01/ CAR B2 B.4.1. Is the baseline methodology described and the choice of the baseline scenario substantiated? The baseline scenario was determined according to ACM0002 and the information provided by the Chinese DNA and deemed conservative. /ACM2/ /dna/ B.4.2. Are there any legally binding regulatory instruments? B.4.3. Are evidences provided to assess whether the project activity is not considered as normal practice? Yes. The baseline scenario represents the current situation and thus fulfils all the relevant national and/or sectoral policies, macro-economic trends and political aspirations. The project activity is compared to the common practice in the region. The selected similar wind farms in PDD Table 6 didn t meet the defined criteria. Please refer to CAR B1. /IM01/ /IM02/ /IM01/ /IM02/ CAR B1 B.4.4. Is leakage to be considered? Not applicable according to methodology. /ACM2/ /IM01/ N/A N/A Page A-24

25 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS Ref. Draft Final B.4.5. Is the most convincing and conservative baseline scenario selected? The baseline scenario was determined according to ACM0002 and the information provided by the Chinese DNA and deemed conservative. /IM01/ B.5. Technology Transfer and/or Technology Innovation Check B.5.1. Will there be any transfer of knowledge or innovation of technology in the host country of project implementation and are the benefits of the transfer substantiated? According to FSR and on site observation, the main facilities are provided by domestic manufacturer. There is no technology sourced from outside. However, based on its local expertise, the DOE concludes that the stateof-the-art technology used for this project (the type is the largest that can be produced by domestic suppliers) is new for Zhenlai County and the EIA has proven that it has been introduced in a sustainable way. /IM01/ C. Sustainable Development Screen The project s contribution to sustainable development is assessed C.1. Assessment 1. Sustainable Development C.1.1. Does the project activity clearly demonstrate benefits in terms of SD, based on: Local / global environment sustainability Yes, in section A.2 and A.4 of the PDD as well as in the GS passport the benefits of local, global, social economical and technological development are /IM01/ to /IM06/ Page A-25

26 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD Social sustainability and development Economic and technological development? C.1.2. Are all statements in the SD Assessment Matrix based on existing sources and referenced? COMMENTS described. The project contributes to: better air quality, access to affordable and clean energy services, meet local electricity requirement, thus contributes to the economy in the local region, and create jobs. Yes, the parameter chosen are based on Gold Standard Toolkit, statements in assessment matrix are based on feedback of the stakeholder consultation, and EIA, FSR finalized by authorized third party. Ref. /EIA/ /FSR/ /SHCP/ Draft C.1.3. Is the scoring transparent and verifiable? Yes, all the reference is transparent and verifiable. C.1.4. Are all SD indicators discussed during stakeholder consultation? C.1.5. Are all points considered relative to the baseline scenario? C.1.6. Scoring requirements: Have all components a non-negative subtotal score? Yes, by reviewing samples of questionnaires and interview of local people, the SD indicators are discussed during stakeholder consultation. The project is a wind farm project applying Methodology ACM0002, which defines baseline scenario clearly, all points in SD assessment are in line with Gold Standard Requirement. All components have a non-negative subtotal score. The assessment is in line with EIA. /IM01/ to /IM06/ /SHCP/ /ACM2/ /GS-R/ /EIA/ Final Page A-26

27 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD Is the total score positive? COMMENTS Ref. Draft Final Has one indicator a score of? Are all indicators scoring subjected to the EIA? C.1.7. In case of significant negative impacts of the project, are the identified points included in the monitoring plan? Since no significant negative impacts are considered, the monitoring of such is not necessary. N/A N/A C.2. Environmental Impact assessment The project s contribution to sustainable development shall be assessed in the sustainability matrix in section K. C.2.1. Does the Project Proponent conforms with (local, regional, national) requirements concerning EIAs? C.2.2. Is an EIA carried out by the PP? C.2.3. If no EIA has been carried out, could it be assessed whether Environmental impacts of the project are included in the PDD? Yes, EIA is required by the host country government. No. EIA was carried out by Environment Science Institute of Northeast Normal University, which is a third party, and authorised as the first class qualification by National Environment Bureau. /EIA/ Not applicable, refer to checklist C.2.2. /EIA/ N/A N/A Page A-27

28 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD Any SD indicator is scored? COMMENTS Ref. Draft Final Stakeholders identified any significant social or environmental impacts? C.2.4. In cases where SD indicators are scored or stakeholders identify impacts, is a mitigation plan developed? Since no negative scoring is identified, no mitigation plan must be developed. C.2.5. If a full EIA has been carried out, is the documentation submitted to the validator and are all GS criteria fulfilled? The documentation including EIA is submitted, all GS criteria are fulfilled in GSD. /EIA/ /GS- R/ C.2.6. In case of significant negative impacts of the project, are the identified points included in the monitoring plan? Since no significant negative impacts are considered, it is not necessary to include an environmental impact monitoring in the GS passport. /EIA/ /IM01/ to /IM06/ C.3. Public consultation Procedures C.3.1. Was an initial stakeholder consultation conducted with invitation of local policy makers, directly impacted people, NGOs (that have endorsed the GS), the GS? An initial stakeholder consultation procedure has been conducted on However, the invitation of stakeholder lacks of local NGOs representation; please refer to GS toolkit: 2.6 Organise and report local stakeholder consultation. /IM01/ to /IM06/ CAR C1 C.3.2. Have comments been actively invited and was the publication adequate Newspaper is used for local stakeholder, and many NGOs are invited by . CAR C1 Page A-28

29 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD publicised? COMMENTS However, local NGO are not included in the contact list, please refer to checklist C.3.1. Ref. /IM01/ Draft Final C.3.3. Is the range of stakeholders selected appropriate? Local residents, local government officer are invited in a stakeholder meeting, many NGOs are invited by . However, local NGOs are not included in the contact list, please refer to checklist C.3.1. /IM01/ CAR C1 C.3.4. Were all stakeholders asked to address environmental and social impacts? Please refer to checklist C.3.1. /IM01/ CAR C1 C.3.5. Does the initial stakeholder report include a clear description of the invitation and the meeting? All written comments received? An argumentation whether or not a comment is taken into account? The stakeholder report includes a comprehensive description of the invitation and the meeting. Local residents, local government officer attended the meeting. Generally, no significant negative comments on the project have been received. C.3.6. Was a stakeholder feedback round conducted? The stakeholder feedback round has been commenced during validation. The feedback will be closed by , which will be after the on-site validation. Therefore, the necessary documentation is pending. /SMP/ /IM01/ to /IM06/ CL C2 C.3.7. Is the international stakeholder procedure clearly described and are all arguments whether or not comments are taken into account demonstrated? The published status of the project in the GS website has been mentioned. However, the international stakeholder procedure is not clearly described, including how to decide certain /gs/ /GS-R/ CL C3 Page A-29

30 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS organization/individual, how many days are defined as the comments open period, etc. Ref. Draft Final Page A-30

31 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD D. Monitoring requirements and Monitoring Plan COMMENTS Ref. Draft Final D.1. SD Indicators and EIA D.1.1. Are all indicators of the SD Matrix and the EIA, which are critical for a positive contribution Clearly identified Marked with an asterisk in the matrix Added to the monitoring plan? The sustainable development indicators which are critical for a positive contribution to SD are: Air quality Quality of employment Quantitative employment and income generation. The indicators are clearly marked with a + and added to the monitoring plan. Besides, the mitigation measures of soil condition and water quality will be monitored. The justification of the choices is in line with the EIA. /EIA/ D.1.2. Are the data to be used for monitoring actually available? Yes, the air quality will be indirectly measured through the amount of electricity generated, which could be measured by power meter (the electricity provided by the project will replace equivalent electricity supplied by thermal power plants, so will reduce certain level of SO2 and NOx that would have otherwise been produced by thermal power plants without the project activity); Quality of employment will be measured by training records and certificates; Quantitative employment and income generation will be presented by job opportunity to local people and income records. D.2. Public Consultation D.2.1 Are all indicators of importance The indicators which are critical for a positive Page A-31

32 TÜV NORD JI/CDM Certification Program P-No: /191 GS Checklist items w.r.t. major aspects of project eligibility, additionality and SD Clearly identified Marked with an asterisk COMMENTS contribution to SD are clearly identified and included in monitoring plan. Ref. /SHCP/ Draft Final Included in the monitoring plan? D.3. measures Potential mitigation/compensation D.3.1 Are possible mitigation measures discussed and planned for all indicators scored -? No indicator is scored negative. N/A N/A D.3.2 Is a mitigation plan developed? Not necessary since stakeholder consultations and SD matrix have not identified significant negative impacts. N/A N/A D.3.3 Are compensation measures implemented for all negative impacts where mitigation is not feasible and could these compensations assessed as sufficient? Not applicable, refer comments above. N/A N/A Page A-32