VALIDATION REPORT CDM GOLD STANDARD

Transcription

1 VALIDATION REPORT CDM GOLD STANDARD ATMOSFAIR GGMBH CPA: CPA # 2 IMPROVED COING STOVES FOR NIGERIA (GS 1352) POA: IMPROVED COING STOVES FOR NIGERIA PROGRAMME OF ACTIVITIES (GS 834) Report No: /183GS Date: TÜV NORD CERT GmbH JI/CDM Certification Program Langemarckstrasse Essen, Germany Phone: Fax:

2 Abbreviations BAU CAR CDM CER CO 2 CO 2e CP CPA-DD CR DNA EB EIA FAR GHG GS GSVVM IPCC ICS MDG PDD PoA-DD QC/QA TNC UNFCCC VVM Business as usual Corrective Action Request Clean Development Mechanism Certified Emission Reduction Carbon dioxide Carbon dioxide equivalent Certification Program Component Programme of Activity Design Document Clarification Request Designated National Authority CDM Executive Board Environmental Impact Assessment Forward Action Request Greenhouse gas(es) Gold Standard Gold Standard Validation and Verification Manual Intergovernmental Panel on Climate Change Improved Cooking Stoves Millennium Development Goals Project Design Document Programme of Activity Design Document Quality control/quality assurance TÜV NORD CERT United Nations Framework Convention on Climate Change CDM Validation and Verification Manual

3 Table of Contents Page 1 Introduction 3 2 Technical Project Description 5 3 Methodology and validation sequence Validation Steps Contract review Appointment of team members and technical reviewers 7 4 Comments by Parties, Stakeholders and NGOs 9 5 Gold standard Validation Findings 10 6 Validation Assessment summary 23 7 References 24 ANNEX 1: VALIDATION PROTOCOL 30 ANNEX 6: STATEMENTS OF COMPETENCE of Team Members 42

4 1 INTRODUCTION Atmosfair ggmbh has commissioned the TÜV NORD JI/CDM Certification Program (CP) to carry out the validation for Gold Standard (GS) CDM CPA project: CPA # 2 Improved Cooking. 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 Atmosfair ggmbh as the CME and sole project participant. The Gold Standard Documentation and supporting documents were reviewed against the criteria as set out in the Gold Standard Requirements v2.1, the Gold Standard Toolkit v2.1 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 final CDM design documents and the 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.

5 The validation is not meant to provide any consulting to the project participant. However, stated requests for clarifications and/or corrective actions may provide input for improvement of the project design.

6 2 TECHNICAL PROJECT DESCRIPTION The proposed PoA involves the dissemination of efficient fuel wood stoves of the type SAVE80 in households within the Federal Republic of Nigeria. The CPA under validation is the CPA # 2 and encompasses the dissemination of 3,200 Improved Cooking Stoves (ICS) in operation annually. The number of ICS is determined on the basis of the small-scale threshold (60 GWh th /year) as described in the POA-DD section A.4.3 / the real case CPA DD CPA # 1 Improved Cooking verified by TÜV NORD, vide section and Table A-4 of the Validation Report: /501 - PoA Improved Cooking Programme of Activities. The emission reductions occur due to a more efficient use of non-renewable biomass in comparison to the baseline situation. Further key parameters of the program are given in the CDM and PoA Validation Reports /VAL/.

7 3 METHODOLOGY AND VALIDATION SEQUENCE 3.1 Validation Steps 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 (if applicable) A desk review of the PoA-DD and Gold Standard Documents submitted by the client and additional supporting documents with the use of customised validation protocol /CPM/ according to the GS Validation and Verification Manual /GSVVM/ and Gold Standard Requirements /GSR/. Validation planning, On-Site assessment (if applicable) 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. Further details to the methodology and validation sequence is given in the validation reports /VAL/. The sequence of the validation is given in the table 3.1 below: Table 3.1: Validation sequence Topic Time Assignment of GS validation Submission of PDD for global stakeholder commenting process PoA on-site visit PoA CDM Registration CPA # 2 Inclusion PoA and CPA #1 Gold Standard Registration

8 Qualification Status 2) Scheme competence Technical competence 4) Host country Competence Team Leading competence On-site Visit Validation Report for Gold Standard Registration: CPA # 2 Improved Cooking CPA # 2 draft GS reporting finalised Final reporting finalised Technical review on final reporting finalised Contract review To assure that the project falls within the scopes for which DOE accreditation is held, the necessary competences to carry out the validation can be provided, Impartiality issues are clear and in line with the CDM accreditation requirements a contract review was carried out before the contract was signed. 3.3 Appointment of team members and technical reviewers On the basis of a competence analysis and individual availabilities a validation team, consistent of one team leader and three additional team members, were appointed. Furthermore also the personnel for the technical review and the final approval will be determined. The list of involved personnel, the tasks assigned and the qualification status are summarized in the table 3-2 below. Table 3-2: Involved Personnel Name Company Function 1) Mr. Ms. Ulrich Walter TN CERT GmbH TM A 3.1 Mr. Ms. David Lubanga TN CERT GmbH TM 3) A - Mr. Ms. Grzegorz Kochaniewicz TN CERT GmbH OR B) LA - Mr. Ms. Stefan Winter TN CERT GmbH TR/FA B) SA 3.1 1) 2) 3) TL: Team Leader; TM: Team Member, TR: Technical review; OT: Observer-Team, OR: Observer-TR; FA: Final approval GHG Auditor Status: A: Assessor; LA: Lead Assessor; SA: Senior Assessor; T: Trainee; TE: Technical Expert GHG auditor status (at least Assessor)

9 4) A) B) As per S01-MU03 or S01-VA070-A2 (such as 1.1, 1.2, ) Team Member: GHG auditor (at least Assessor status), Technical Expert (incl. Host Country Expert or Verification Expert), not ETE No team member Certificates of appointment for the above mentioned team members will be enclosed in annex 6 of this report.

10 4 COMMENTS BY PARTIES, STAKEHOLDERS AND NGOS According to the modalities for the validation of PoA projects, TÜV NORD JI/CDM CP published the draft PoA-DD, generic CPA-DD and real case CPA-DD on the website on 20 th November 2010 and invited comments within 30 days, until 19 th December 2010 by parties, stakeholders and UNFCCC accredited nongovernmental organisations. Apart from UNFCCC requirements, the full documentation was made publicly available for 60 days until 18 th January 2011 as per the GS requirements. Apart from the global stakeholder consultation via the UNFCCC website stakeholder comments were solicited during the local stakeholder consultation as well as the stakeholder feedback round /LSC/. Furthermore, the validation team pro-actively requested local stakeholders during the validation on site visit of the PoA to provide comments to the PoA. In light of the above mentioned ways of soliciting stakeholder comments TÜV NORD developed its validation opinion concerning the program s contribution to sustainable development. Further details on these aspects are discussed in Annex 1 of this report.

11 5 GOLD STANDARD VALIDATION FINDINGS The findings of the Gold Standard validation process are summarized in the tables below. Finding: Classification CAR CL FAR Description of finding Describe the finding in unambiguous style; address the context (e.g. section) General Finding 1. Please maintain a consistent font type and size 2. All tables and diagrams to be labeled for easier referencing A1 Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox 1. Font type and size are now consistent in GS PP version Tables and diagrams are now labelled for easier referencing in GS PP version The GS passport version 2.0 has been checked and found the font type and size is consistent throughout the document 2. Tables and diagrams are labelled accordingly CAR A1 is closed To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Finding: Classification CAR CL FAR Description of finding Describe the finding in unambiguous style; address the context (e.g. section) Section B 1. Table of the registered CPA-DD in section A.2 not consistent with the one in GS Passport Section B. Please clarify this. A2 2. Star* footnote under the same table does not appear to be correct as CPA addition was a different date. 3. Further, the table must be updated to conform to the date of CPA addition ( )

12 Finding: Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. A2 1. Table was copied from older version of CPA-DD, not the registered one. This was by mistake. Table was now updated to the date of CPA inclusion, i.e. 11/07/2012, which is different from the date estimated in the registered CPA- DD, i.e. 15/07/ Table was revised and is now referring to the real date of CPA inclusion, which is actually different from the estimated date of inclusion as per registered CPA-DD (i.e. estimated date was 15/07/2012, real date was 11/07/2012). 3. Table is updated. 1. Table 1 in Section B of the GS Passport has been appropriately updated to begin with the CPA inclusion date. This is deemed as correct as the date of actual CPA inclusion is now earlier than the CPA-DD estimate. 2. Appropriate correction has been done to reflect the actual CPA-inclusion date 3. Ok as of points 1 and 2 above Conclusion Tick the appropriate checkbox CAR is closed To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Finding: Classification CAR CL FAR Description of finding Describe the finding in unambiguous style; address the Section C.3 context (e.g. section) Please justify CPA eligibility based on all sections to of the GS version 2.1 Toolkit guidelines. C1

13 Finding: Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox C1 Same has been done in the PoA passport for all CPAs to be included under the PoA. Refer Section B of registered PoA passport, where it is mentioned: Assessment of PoA eligibility: Criteria Description Eligibility Y/N Scale CPAs under the PoA will be smallscale Y energy efficiency projects below 180 GWh thermal energy savings Host country Nigeria (Non-Annex 1 country) Y Type End-use energy improvement Y Greenhouse CO2 Y gases Receipt of ODA Not applicable Y in return for carbon credits Project Parallel submission Y timeframe Other No other voluntary carbon schemes Y certification schemes CPA compliance with All CPAs under the PoA are compliant with the eligibility criteria Y GS eligibility stated above criteria Reference to PoA elibility assessment is now included in the GS passport version 2. The validation team has consulted the registered PoA Passport /PoA- PP/ and confirms that all eligibility criteria requirements as per the GS Toolkit v2.1 have been met. CAR is closed To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Finding: Classification CAR CL FAR D1

14 Finding: Description of finding Describe the finding in unambiguous style; address the context (e.g. section) Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox Section D.1 D1 Section D.1: Geographic coordinates shall be presented according to T.1.6 of GSv2.1 and as per the GSv2.1 template guidelines. Coordinates are presented in the format xx xx' xx" xx xx' xx" as required by the Gold Standard toolkit v 2.1 Geographical coordinates are presented as per GS template requirements and no further action is required. CAR is closed To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Finding: Classification CAR CL FAR Description of finding Describe the finding in unambiguous Section E.1 style; address the context (e.g. section) As per Annex F of GS v2.1 6, please submit to DOE each CPA LSC Report Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox E1 LSC for the first 5 CPAs already took place at the LSC meeting in Kaduna on September 30, 2010.This stakeholder meeting also served as the PoA stakeholder meeting. The report is attached. PP has provided the LSC report for validation. As per the PoA Passport /PoA-PP/, stakeholder consultation is at CPA level. In this regards, the LSC report submitted covers the first 5 CPAs and hence accepted. CL is closed To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Finding: Classification CAR CL FAR F1

15 Finding: Description of finding Describe the finding in unambiguous style; address the context (e.g. section) Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox Section F.2 F1 Please submit the LSC Report and all sections shall be consistent with the passport as per GS requirements, The report is attached. All sections containing information about the LSC are consistent with the information in the LSC report. The Local stakeholder consultation has been submitted and is found to be consistent with the project documents. CAR is closed To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Finding: Classification CAR CL FAR Description of finding Describe the finding in unambiguous style; address the context (e.g. section) Section G 1. Indicator 2, 4, 5, & 6: Please clarify the statement that no ICS is implemented under the PoA, yet this is CPA 02. The dates shall also be updated. G1 2. Uniform font size and type requested 3. Please change Bold to B old 4. Clarify whether it is N eaters_appliance or N eaters_project

16 Finding: Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. DOE Assessment #1 The assessment shall encompass all open issues in annex A-1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox G1 1. The chosen parameters were derived from the stakeholder consultation in 2010 and the following SD matrix exercise in the course of the first CPA, but are valid for the first 5 CPAs as mentioned in Section G. Hence these parameters are frozen for the first 5 CPAs. Therefore, the parameter tables were copied from the CPA passport for CPA # 1. The procedure is mentioned in Section G of the PoA passport: The SD assessment is done at the CPA level for a group of CPAs respectively, see above. Therefore the monitoring parameters are mentioned in the CPA passports. The monitoring parameters from CPA # 1 are valid for the next 4 CPAs. However, current situation of parameter was updated to reflect recent developments. Evidence can be found in the (draft) GS Monitoring report, which is attached. 2. Changed 3. Changed 4. Typo error. Changed to N eaters_appliance 1. The validation team has checked the LSC report wants more. As the LSC report applies to the first five CPAs, this issue is now closed 2. Necessary corrections have been done 3. Necessary corrections have been done CAR is closed To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed

17 5. VALIDATION ASSESSMENT SUMMARY This GS validation Report should be seen in conjunction with the CDM validation reports /VAL/ as well as the registered GS PoA/CPA validation Report /VAL/. 5.1 General Description of the Project Activity Participation LOA The CDM Programme of Activities (5067) required a Letter of Approval from the Host Country. The LoA was obtained on the date of officially from the DNA of the Federal Republic of Nigeria. Accordingly, the CPA # 2 under the PoA complies with CDM and GS requirements Project Participants/Host Country Eligibility The CME and the sole project participant is Atmosfair ggmbh which is authorized as Nigeria s Project Participant and authorized by the host party Nigerian DNA as the Coordinating and Managing Entity. The Federal Republic of Nigeria as the party involved has ratified the Kyoto Protocol but has no cap (quantitative target for emission reductions) on GHG emissions /unfccc/ Contribution to Sustainable Development Besides GHG emission reductions, the proposed project also contributes to sustainable development. The sustainable development indicators relevant for the project activity have been assessed using the Gold Standard Sustainable Development (SD) assessment matrix As per Section F.2 of the PoA and CPA Gold Standard Passports /CPA-PP/, for the positive scores the project contributes to Sustainable development demonstrable through: i. Air Quality ii. iii. Quality of Employment Access to Affordable and clean energy services iv. Human and institutional capacity v. Quantitative employment and income generation vi. Technology transfer and technological self reliance

18 The Federal Republic of Nigeria DNA also confirms that the project assists the country in achieving sustainable development CPA-DD editorial Aspects The project CPA-DD is using CDM-SSC-CPA template version 01, and is consistent with the generic CPA-DD. They are in compliance with the latest PoA-DD and CPA- DD templates and guidelines Technology to be employed The project activity is the installation of efficient SAVE80 cookstoves to household kitchens in the project area. The stoves are fixed installations in households and reduce firewood consumption by approximately 52% /MS/. The CPA is to be implemented via the designed PoA through the managing entity to contract distributors to give them access to technology and/or finance through the programme, and sell, install and maintain up to 3,200 improved cooking stoves (ICS) in Nigerian households per year over the fixed crediting period of 10 years Small Scale Projects The value of average annual emission reductions of this proposed CPA is 11,290 tco 2 e and annual thermal energy savings equivalence is much less than 180 GWh thermal energy savings equivalent annually (threshold as per UNFCCC-clarification request SSC_233 /ssc/ ); therefore, the proposed project is a small scale CPA. 5.2 Project Baseline, Additionality and Monitoring Plan Application of the Methodology By consultation of the UNFCCC website, it is confirmed that the Approved methodology for small-scale CDM project AMS.II.G: Energy efficiency measures in thermal applications of non-renewable biomass (version 03), is applicable to the proposed PoA. The version of this CDM Methodology approved by EB is valid during submission for registration Project Boundary The boundaries (geographically and related to GHG sources / sinks) are correctly given in section A of the PoA-DD. The geographical boundary of this PoA is the geographical area of Nigeria. As per AMS.II.G (version 03), the boundary of the CPA of this PoA is the physical,

19 geographical site area of the efficient systems using biomass. The information has been also correctly given in section A of the real case CPA-DD Baseline Identification The applied methodology AMS.II.G version 03, defines the baseline as the use of fossil fuels for meeting similar thermal energy needs in the absence of the project activity. Therefore, the CPA baseline scenario is correctly defined as: the use of fossil fuels for meeting similar thermal energy needs. Therefore, emission reductions are calculated by multiplying the thermal energy from annual biomass savings stemming from non-renewable biomass with an emission factor of fossil fuels. The validation team confirms that the CME has correctly applied the AMS.II.G, version 03 to arrive at the baseline determination. Conservative approach As per Gold Standard principles of conservativeness and transparency (Gold Standard Requirements /GSR/ Section III.f.5 and Toolkit /GST/ section 2.2, PP has employed a conservative approach in determination of the fnrb and assumptions of leakage L NRB in the baseline scenario. Furthermore, no other fuels other than firewood have been considered for the baseline scenario for conservativeness Calculation of GHG Emission Reductions The CPA-DD applies steps and equations to calculate emission reductions as per the requirements of the applied methodology. For the calculation of the GHG emission reductions the correct equations have been used reflecting the methodological choices. Following equations are used for the calculation of the emission reductions: ER y B y,savings f NRB,y NCV biomass EF projected_ fossilfuel Where, B B y,savings old B old η (1- η old new ) old = 0.1 mp Bold, N appliance y (1 DOy ) 365 L NRB = 0.95, L PoA = 0.95, B N B old, appliance old, capita eatersappliance, length L NRB L PoA

20 B old,capita = t/year NRB f NRB, y = 0.77 NRB DRB NCV biomass = TJ/t EF projected_fossilfuel = 81.6 tco 2 /TJ Where, N eaters,appliance, N y,do y and η new are monitoring parameters. Parameter Unit Description ER y tco 2 Emission reductions of the project activity in period y B y,savings t Quantity of woody biomass that is saved by the CPA f NRB,y - Fraction of woody biomass saved by the project activity in period y that can be established as non-renewable biomass (fixed parameter of 0.77) ( FAO (2003): Experience of Implementing National Forestry Programmes in Nigeria (ftp://ftp.fao.org/docrep/fao/005/ac918e/ac918e00.pdf)) NCV biomass TJ/t Net calorific value of the non-renewable woody biomass that is substituted (fixed parameter of TJ/t, IPCC default for wood fuel) EF projected_fossilfuel tco 2 / TJ Emission factor for the substitution of non-renewable woody biomass by similar consumers (fixed parameter of 81.6 tco 2 /TJ, AMS II.G. Default Value) B old t Quantity of woody biomass used in the absence of the project activity old % Efficiency of the baseline system being replaced (fixed parameter of 0.1, AMS II.G. Default Value) new % Efficiency of the system being deployed as part of the project activity B old,,appliance t/year Average annual consumption of woody biomass per appliance N y - Adjusted total number of appliances deployed in period y DO y % Statistically adjusted drop out from total population of appliances in period y mp length days Length of monitoring period y L NRB - Net-to-gross adjustment factor for NRB Leakage (fixed parameter of 0.95, AMS II.G. Default Value) L PoA - Net-to-gross adjustment factor for PoA Leakage (fixed parameter of 0.95, AMS II.G. Default Value) B old, t/year Average baseline fuelwood consumption per capita per capita year (fixed parameter of t/year, N, - Average number of eaters per project appliance eaters appliance For the data and parameters not to be monitored throughout the crediting period, it is assessed that all data sources, assumptions and calculations are correct, reasonable and applicable to the project and contribute to a conservative estimate of the emission reductions. For the data and parameters subject to monitoring, it is

21 confirmed that the ex-ante estimated values for the monitoring parameters are plausible, and the emission reduction estimates provided in the POA-DD are reasonable and conservative Additionality Determination Public announcement check As per the GS Toolkit v2.1 section /GST/, a project is not allowed under the Gold Standard if it was previously announced to be going ahead without revenues from carbon credits. PP has provided a statement in section C.2 of the PoA Gold Standard Passport /PoA-PP/ stating that the proposed project activity has not been announced previously without mentioning that it will be conducted as a carbon offset project. The CPA complies with all additionality eligibility criteria as set out in the PoA framework. Application of methodology / methodological tools The DOE confirms that the monitoring plan of the CPA is in compliance with the applied monitoring methodology AMS.II.G (version 03) as well as the registered PoA- DD, PoA Passport, and GS requirements. Alternatives The only identified and plausible alternative is the baseline scenario in the project area. That is, cooking using the traditional 3-stown fire. ODA Additionality Screen The CME/PP is a private entity. Annex 2 of the CPA-DD states that no ODA has been channelled to the project activity. A declaration is also given in Annex 1 of the Gold Standard Passport from the Executive Director of Atmosfair ggmbh. Technology transfer and / or knowledge innovation Summary The efficient cook stove is made of stainless steel and prefabricated in Germany. It is an improvement from existing and widespread use of the inefficient three-stone fire for cooking purposes /CPA-DD/. Monitoring Methodology/Monitoring Plan

22 The selected monitoring plan is in line with the approved AMS.II.G (version 03) According to the applied methodology, all monitoring parameters required by the applied methodology are contained in the monitoring plan. The monitoring arrangements can be properly implemented; all monitoring arrangements are feasible within the project design. A detailed management structure including QA/QC procedures of monitoring activities is sufficiently provided in section A.4.4 and E.7.2 of the PoA-DD and section B.6.1 of the CPA-DD. For the Sustainability Monitoring Plan (Section G), all relevant GS parameters with non-neutral impacts that are to be monitored under the CPA include sustainable development indicators: air quality, quality and quantity of employment, access to affordable and clean energy services, human and institutional capacity, and technology transfer and technological self-reliance /CPA-PP/. Project Management Planning The objective of the CPA is to reduce GHG emissions by reducing firewood consumption in the region of Kaduna through subsidizing the installation of improved cookstoves for households throughout the progamme of Activities lifetime. To overcome the financial and technological barrier, the project is subsidized through carbon finance in return to stove owners ceding rights to the realized CERs. The revenues raised from sale of stoves are used in normal operations of the PoA. Management structure of the monitoring plan is defined in Section A.4.4 of the CPA- DD and Section B of the CPA Passport, and is assessed to be appropriate for the purpose of the projects monitoring. The overall responsibility for the monitoring will be held by the atmosfair ggmbh (CME). CME is responsible to assign the collection work of monitoring data for CPAs of the PoA. All monitoring data will be kept at CME. Emission reduction calculation will be based on data collected and analyzed by CME. The database is confirmed as the data management system designed specifically for the PoA to ensure the data accuracy, to avoid double counting, to addressing uncertainty (QA/QC), and to manage monitoring data storage for the monitoring of all CPAs. Crediting Period The start of the fixed crediting period is unambiguously stated in the CPA-DD as well as the GS Passport /CPA-PP/ as when the CPA was included in the PoA /unfccc/. Environmental Impacts Environmental Analysis is chosen to be done at PoA level.

23 The host country does not require an environmental impact assessment as no negative environmental impacts for the proposed project activity are expected. As per the GS requirements /GSR/ environmental impacts has been discussed during the stakeholder consultations /LSC/. The stakeholders have not identified any negative environmental or social impacts. The overall opinion regarding the project activity was positive. Additional, no indicator of the SD matrix was scored negative and no safeguarding principles in the No Harm Assessment required any mitigation measures. The validation team therefore concludes that the project activity will cause no adverse social or environmental impacts. Comments by Local Stakeholders Local stakeholder consultations are chosen to be done at CPA level. The LSC was conducted and applicable to the first CPA which meet all the CDM and GS Eligibility Criteria. All information and comments are properly included in section E.1 of the CPA Passport /CPA-PP//LSC/. A local stakeholder consultation meeting was held in Kaduna. All relevant stakeholders were invited to attend and majority returned with positive comments. A list of participants was included in the Stakeholder consultation report section B.1 showing representatives from local and government officials /LSC/. A sample of the comments received from the stakeholders has been summarized in the Local Stakeholder Consultation Report section C.3, which was has been availed to DOE. No stakeholder expects significant negative impacts after the full implementation of the project activity. The stakeholder Feedback Round for the first 5 CPAs was conducted in line with GS requirements /LSC//VAL/. All stakeholders were invited and gave positive views on the project as reported in Section E.2 of the Gold Standard passport.

24 6 VALIDATION OPINION Atmosfair ggmbh has commissioned the TÜV NORD JI/CDM Certification Program (CP) to validate the programme of activities (PoA): CPA # 2 Improved Cooking. with regard to relevant requirements of the Gold Standard foundation. 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 /GSR/. The findings and conclusions on the program s compliance with the Gold Standard are recorded in this document. However, this document must be seen in conjunction with the validation report /VAL/. In the course of the validation for GS registration 7 Corrective Action Requests (CARs) and 9 Clarification Requests (CLs) were raised and successfully closed. In detail the conclusions can be summarised as follows: The CPA meets all eligibility criteria set by the PoA and the GS Foundation The CPA involves the adaption of a new technology The CPA does not result in negative social, environmental and/or economic impacts The CPA contribution to Sustainable Development is determined The CPA additionality is sufficiently justified in the CPA-DD and GS CPA-PP The CPA does not result in diversion of ODA Conservative assumptions were applied in the CPA description The monitoring plan of SD parameters is transparent and adequate The CPA meets the stakeholder consultation requirements The calculated emission reductions of 112,900 tco 2e are most likely to be achieved within the ten-year crediting period Considering the specific context in which the CPA is implemented it is appropriate to combine PoA and CPA stakeholder consultation, do no harm assessment and detailed impact assessment The conclusions of this report show, that the CPA, as it was described in the CPA documentation, is in line with all criteria applicable for the validation. Essen, Essen, Mr. Ulrich Walter TÜV NORD JI/CDM CP Validation Team Leader Mr. Winter, Stefan TÜV NORD JI/CDM CP Final Approval

25 7 REFERENCES Table 7-1: Reference Documents provided by the project participant Document /CPA-DD/ CPA # 2 Improved Cooking (version 2.0, ) /CPA-PP/ CPA Passport dated version 1, dated CPA Passport dated version 2.0, dated /CAT/ CPA addition timeframe confirmation dated /EFW/ IPCC Guidelines for national GHG Inventories (2006) /FSR/ First sale of ICS Declaration, dated /gcpa-dd/ CPA # [xxx] Improved Cooking (version 2.1, ) /GSMR/ Gold Standard Monitoring Report for UNFCCC project ref. 2711, GS 411 /GSP/ Gold Standard CPA Passport version 2.0, dated /MS/ /UNFCCC/ SAVE80 Manufacture specifications from KOCH Anhängerwerk GmbH and Co.KG, dated SAVE80 Manufacture specifications from KOCH Anhängerwerk GmbH and Co.KG, dated UNFCCC Confirmation that there is no PoA under the same CME in Nigeria, dated /DoA/ Declaration of Awareness and agreement on PoA subscription, dated /ODA/ Declaration of Non-diversion of ODA in case of Public funding, dated /PIS/ SAVE80 Product Information sheet /PoA-PSP/ Gold Standard PoA Passport version 2.3 /SLS/ Statement letter from CME regarding awareness of the CPA being subscribed to the PoA, dated /SLA/ Approval for the CPA to be included into registered PoA, dated /SLB/ /SLN/ Statement of CME that the 2 nd CPA location and boundary is within Nigeria, dated Statement letter from CME regarding all stoves will be deployed under the CPA are

26 Reference Document new, dated /SLSD/ /SLU/ Statement letter from CME regarding the starting date of CPA Statement letter from CME regarding Check on UNFCCC website, date of access: /SR/ 1 st sold SAVE80 stove User Agreement Sales Receipt, dated /SRT/ /XLS/ Default ICS sales receipt template Emission reduction calculation spreadsheet, (ER) Table 7-2: Reference Background investigation and assessment documents Document /AMS.II.G/ Energy efficiency measures in thermal applications of non-renewable biomass version 02 Energy efficiency measures in thermal applications of non-renewable biomass version 03 /CPM/ /GCP/ TÜV NORD JI / CDM CP Manual (incl. CP procedures and forms) UNFCCC: Guidelines for completing CDM-PDD and CDM-NM /GSC/ Global Stakeholder Consultation ( ) /GPoA/ Gold Standard PoA Rules and Guidances (2011) /GSR/ Gold Standard Requirements v2.1 /GST/ Gold Standard Toolkit v2.1 /IPCC-GP/ /IPCC/ /DDs-T/ IPCC Good Practice Guidance & Uncertainty Management in National Greenhouse Gas Inventories, IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual CDM-SSC-PoA-DD - Small-Scale CDM Programme of Activities Design Document form (version 01, EB 33 Annex 43) CDM-SSC-CPA-DD - Small-Scale CDM Programme Activity Design Document form (version 01, EB 33 Annex 44) /KP/ Kyoto Protocol (1997)

27 Reference Document /LSC/ /MA/ Local Stakeholder Consultation Report Decision 3/CMP. 1 (Marrakesh Accords & Annex to decision (17/CP.7)) Improved Cooking Programme of Activities (version 2.3, ) /PoA-PP/ Registered PoA Passport version 2.3 /POAR/ 1. Procedures for registration of a programme of activities as a single CDM project activity and issuance of certified emission reductions for a programme of activities (current version 04.1, EB 55 Annex 38) (the PoA Procedures ); 2. Procedures for review of erroneous inclusion of a CPA (current version 02, EB 55 Annex 37) (the CPA Review Procedures ) 3. Guidance for determining the occurrence of de-bundling under a programme of activities (PoA) (v03, EB54 Annex 13) 4. Procedures for approval of the application of multiple methodologies to a programme of activities (current version 01; EB 47 Annex 31) (the Multi-Meth Approval Procedures ); 5. Standard for Sampling and Surveys for CDM Project Activities and Programme Activities (version 2.0; EB 65 Annex 2) 6. Guidance on the registration of project activities under a programme of activities as a single CDM project activity (EB32, annex 38) /site visit/ PoA onsite visit carried out between /TA/ Tool for the demonstration and assessment of additionality (Ver. 4 Ver. 6.0) /GSVVM/ Validation and Verification Manual /VAL/ Registered GS PoA Validation Report, dated Registered CDM PoA Validation Report, dated Registered CDM CPA Validation Report, dated /VVM/ Validation and Verification Manual (Version 1.2, Annex 1; EB 55) Table 7-3: Websites used Reference Link Organisation /cd4cdm/ UNEP Risoe Centre /cpn/ Carbon Positive /env/ Envirofit Website /fao/ FAO

28 Reference Link Organisation /fao4/ 1.pdf FAO: Food and Agriculture Organisation of the United Nations; Forestry Department: Global Forest Resources Assessment Country Report Nigeria (Rome, 2005) /gs/ Gold Standard Foundation /ipcc/ IPCC publications /UNECE/ United nations Economic Commission for Europe /unfccc/ UNFCCC

29 Table 7-4: List of interviewed persons Reference MoI 1 Name Organisation / Function /IM01/ V Mr. Ms Florian Zerzawy Atmosfair ggmbh, CDM Project Developer 1) Means of Interview: (Telephone, , Visit)

30 ANNEX A1: Validation Protocol

31 Validation Report for Gold Standard Registration: CPA # 2 Improved Cooking TÜV NORD JI/CDM Certification Program P-No: /183 CPA002 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? A.1.2. Has the host country a quantitative reduction target under the Kyoto Protocol? Description: As per the PoA-DD, CPA-DD and GS toolkit section and the methodology, the project activity is an End-use Energy Efficiency Improvement project and is thus eligible as per Annex C of the Gold Standard requirements. The host country is the Federal Republic of Nigeria, which has no quantitative reduction target under the Kyoto protocol. /CPA-DD/ /GSR/ /GST/ /UNFCCC/ A.1.3. Which size has the project per definition of the GS requirements (Micro-, Small-, Large Scale)? The project is a small scale project with respect to the Gold Standard and CDM-UNFCCC requirements. It applies the latest version of the Small Scale Methodology AMS II. G version 03. The CPA will remain under the limit of small-scale project activity types (annual energy savings below 60 GWh thermal energy savings) in compliance with the PoA eligibility criterion 14. CAR A2: Table of the registered CPA-DD in section A.2 not consistent with the one in GS Passport Section B. Please clarify this. /UNFCCC/ /CPA-DD/ /AMS.II.G/ CAR A2 Star* footnote under the same table does not appear to be correct as CPA addition was a different date.

32 Validation Report for Gold Standard Registration: CPA # 2 Improved Cooking TÜV NORD JI/CDM Certification Program P-No: /183 CPA002 Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS Ref. Draft Final Further, the table must be updated to conform to the date of CPA addition ( ). 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 project but part of a registered CDM PoA (CDM 5067, GS 834). /CPA-DD/ /UNFCCC/ B. Additionality Screen A.2. 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 implementation of the project? The project was not previously publicly announced to go ahead without CDM, as mentioned in section C.2 of the registered PoA Gold Standard Passport and confirmed during interviews. /IM01/ /PoA-PP/ /CPA-DD/ B.1.2. Is it stated in the Gold Standard Passport that the project in its current design has not been publicly announced? Yes, section C.2 states that the project was not previously publicly announced. /PoA-PP/ B.1.3. 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? The CPA # 2 applies approach 1 as per registered PoA eligibility criterion 14 which uses micro-scale thresholds for additionality demonstration. The end-users will be households and each individual unit is no more than 1/3 of the SSC limit and the total ICS will not exceed 3200 units in every year of the crediting period. /CPA-DD/ /XLS/ B.2. Additionality Tool Check

33 Validation Report for Gold Standard Registration: CPA # 2 Improved Cooking TÜV NORD JI/CDM Certification Program P-No: /183 CPA002 Checklist items w.r.t. major aspects of project eligibility, additionality and SD B.2.1. Is the Tool for the demonstration and assessment of additionality of the UNFCCC used in its currently available version? COMMENTS The additionality argumentation as per the CDM PoA-DD and CPA-DD is still valid and holds true under the GS requirements. Accordingly, the additionality demonstration does not need to be repeated in the GSP. Hence, reference to the CDM program documents is made herewith. This is appropriate and acceptable to the validation team. Ref. /UNFCCC/ /CPA-DD/ /VAL/ Draft Final B.2.2. Is the tool in its totally used and are the additionality documents satisfactory? refer to B.1.3 and B.2.1 above /UNFCCC/ /CPA-DD/ /VAL/ B.2.3. Are the main arguments reasonable and evidenced? refer to B.1.3 and B.2.1 above /VAL/ /XLS/ B.2.4. Are all references up-to date and reliable? refer to B.1.3 and B.2.1 above /VAL/ /XLS/ B.2.5. Is the project activity compared to the normal practice in the region? refer to B.1.3 and B.2.1 above /IM01/ /VAL/ /XLS/ B.2.6. Are all assumptions (quantitative or qualitative) used to demonstrate the additionality conservative? Please refer to B.2.2 and B.2.3 /VAL/ /XLS/

34 Validation Report for Gold Standard Registration: CPA # 2 Improved Cooking TÜV NORD JI/CDM Certification Program P-No: /183 CPA002 Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS Ref. Draft Final B.3. ODA Additionality check B.3.1 Is ODA used for the project activity and if yes is the funding eligible for the GS? B.3.2. Is a duly filled ODA declaration submitted for validation? No indications were found that ODA is used for the funding of the programme of activities, and the explanations during the interview with the PPs were found to be credible. The ODA declaration of Atmosfair has been included in section A.4.5 of the PoA-DD as well as attached in Annex 1 to the PoA passport in line with CDM and GS requirements. An dully filled ODA declaration dated in Annex 1 of the PoA passport was submitted for validation as per Annex D requirements of the GS Toolkit. /IM01/ /PoA-PP/ /PoA-PP/ B.4. Conservative Approach Check B.4.1. Is the baseline methodology described and the choice of the baseline scenario substantiated? The PoA applies the small scale methodology AMS II. G. A description of the baseline scenario is given in section A.2 and E.4 of the PoA-DD as well as section B and C of the GS Passport. The program involves the dissemination of highly efficient wood fired stoves to replace traditional inefficient cooking stoves. All issues raised were resolved at PoA level. /PoA-PP/ /VAL/ B.4.2. Are there any legally binding regulatory instruments? No, there are no legally binding regulatory instruments that ICS have to be used instead of 3 stone fire. This was confirmed during onsite visit and interviews during onsite visit. /VAL/ B.4.3. Are evidences provided to assess whether the project activity is not considered as normal practice? The sections A and E in the PoA-DD are addressing the normal practice in Nigeria. Sufficient references were given in the PoA-DD to assess that the prevailing practice in Nigeria is the usage of traditional cooking facilities as mentioned above. Further information can be referred to the CDM validation report /IM01/ /site visit/ /VAL/ B.4.4. Is leakage to be considered? Possible leakage has been considered by PP as per the /AMS.II.G/

35 Validation Report for Gold Standard Registration: CPA # 2 Improved Cooking TÜV NORD JI/CDM Certification Program P-No: /183 CPA002 Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS applied methodology. For the non-renewable wood saved by the project is instead consumed by non-project households who previously did not have access to fuel wood leakage has been considered as per paragraph 13 of the applied CDM methodology a net to gross adjustment factor of 0.95 to account for leakages. Also, as per 23 (c) of the methodology, possible interference by other CDM project activities has been considered with a further 0.95 adjustment factor. The calculations are accurately reflected in the ER calculations and deemed to be a conservative approach. Ref. /XLS/ Draft Final B.4.5. Is the most convincing and conservative baseline scenario selected? Yes, the baseline scenario is conservatively assessed. Please also refer to B.4.1 /CPA-DD/ /XLS/ 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? The CME is introducing the technology that is markedly different from the traditional cook-stove of 3-stone fire. The implemented efficient cook stoves under this PoA are prefabricated in Germany. The assembling will be carried out in Nigeria hence transferring the knowledge and skills. /PIS/ /IM01/ /site visit/ C. Sustainable Development Screen The project s contribution to sustainable development is assessed

36 Validation Report for Gold Standard Registration: CPA # 2 Improved Cooking TÜV NORD JI/CDM Certification Program P-No: /183 CPA002 Checklist items w.r.t. major aspects of project eligibility, additionality and SD COMMENTS Ref. Draft Final C.1. Sustainable Development Assessment C.1.1. Does the project activity clearly demonstrate benefits in terms of SD, based on - Local / global environment sustainability - Social sustainability and development - Economic and technological development? The CPA in the Programme of Activities contributes to sustainable development as per the expected positive scores in the sustainable development matrix in the PoA-DD and CPA-DDs: - Improvement of indoor air quality - Quality of employment - Improvement of livelihood of the poor - Access to affordable and clean thermal energy - Enhancing human and institutional capacity - Quantitative employment and income generation - Technology transfer and technological self-reliance /IM01/ /PoA-PP/ /CPA-DD/ C.1.2. Are all statements in the SD Assessment Matrix based on existing sources and referenced? The SD Matrix was created based on the PP s opinion of the program s contribution to SD and incorporating results from the LSC. Justification of scoring of indication and evidences are cited in the registered CPA 1 passport as well as CPA # 2 passport (section F.2). /PoA-PP/ /CPA-PP/ /IM01/ /VAL/ C.1.3. Is the scoring transparent and verifiable? Yes, the scoring is transparent and verifiable.the scoring in the final CPA-PP has been developed considering the feedback provided by local stakeholders and adjusted where necessary. The firs LSC was conducted in Kaduna and remains applicable for the first 5 CPAs. /CPA-PP/ /LSC/ C.1.4. Are all SD indicators discussed during stakeholder consultation? All SD indicators were discussed during the Stakeholder Consultation and results published in the submitted LSC report. /LSC/ /IM01/ C.1.5. Are all points considered relative to the All the Sustainable Development indicators were considered /CPA-PP/