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1 F-CDM-MR Monitoring report form (Version 03.1) Monitoring report Title of the project activity Up Energy s Improved Cookstove Carbon Project, Uganda Reference number of the project activity GS 1044 Version number of the monitoring report Version 05 Completion date of the monitoring report 13 June, 2013 Registration date of the project activity 31 January 2012 Monitoring period number and duration of this Monitoring period #1; 15 June monitoring period December, 2012, (inclusive of each of these dates) Project participant(s) Up Energy Group Inc. Host Party(ies) Uganda Sectoral scope(s) and applied methodology(ies) Scope 1, 3 and 13 Gold Standard Voluntary Methodology Technologies and Practices to Displace Decentralized Thermal Energy Consumption version 1 Estimated amount of GHG emission reductions or net anthropogenic GHG removals by sinks for this monitoring period in the registered PDD Actual GHG emission reductions or net anthropogenic GHG removals by sinks achieved in this monitoring period Year Tons CO2e , ,233 Year Tons CO2e ,183 1 Round down function used for all final numbers in excel, thus each of these appear 1 VER lower than actual to be conservative. The same is the case for all VER numbers in this monitoring report. Version 03.1 Page 1 of 18

2 SECTION A. Description of project activity A.1. Purpose and general description of project activity F-CDM-MR Up Energy s Uganda project promotes the sale of improved energy-saving biomass stoves, i.e. wood fuelled stoves. The project works through local and international organizations as well as local and imported stove distributors to reach Uganda with more efficient cooking technologies. The project sells improved biomass stoves, investing revenues from carbon finance in subsidies, social marketing, and the development of robust distribution channels. The project provides high-quality, affordable biomass stoves to replace inefficient stoves such as traditional 3 stone fires and traditional stoves to regions throughout Uganda. All stoves significantly reduce greenhouse gas emissions while simultaneously offering co-benefits to families such as relief from high fuel costs and/or improved health. Specifically these new kitchen regimes provide some or all of the following benefits: Reduce unsustainable wood harvest and the accompanying deforestation Diminish fuel wood bill for households, and schools, and save fuel collection time for other important activities Contribute to the preservation of wood resources so as to avoid inter-communal conflict over resources Although the project may expand into other technologies within the scope of the PDD and methodology being applied, the project currently sells two types of stoves: the Envirofit G3300 and the Jiko Poa rocket stove. A.2. Location of project activity The project is located in the Republic of Uganda. The project boundary, target areas, and fuel collection area are defined nationally as countrywide. Local distribution partners that are familiar with local conditions and have access to remote communities will be progressively added to the project throughout the crediting period. At this time local distributors are comprised mostly of retailers and savings and loan cooperatives (SACCOs). This model of distribution allows project technologies to reach households in all regions of the country, further enabling access to improved technologies that otherwise would not be available. Below is a summary of distribution centers currently part of the UpEnergy distribution network throughout Uganda: A.3. Parties and project participant(s) Version 03.1 Page 2 of 18

3 Party involved ((host) indicates a host Party) Private and/or public entity(ies) project participants (as applicable) F-CDM-MR Indicate if the Party involved wishes to be considered as project participant (Yes/No) A.4. Uganda (host) Up Energy Group Inc. No Reference of applied methodology Gold Standard Voluntary Methodology Technologies and Practices to Displace Decentralized Thermal Energy Consumption version 1 A.5. Crediting period of project activity 7 years, up to twice renewable SECTION B. Implementation of project activity B.1. Description of implemented registered project activity As per the cluster / scenario definitions established in the PDD as per the baseline survey, the project has to date focussed on the non-institutional biomass users: rural cluster. The project activity has disseminated 15,908 cookstoves during the monitoring period, with an estimated GHG offset during this monitoring period of 20,042 2 tons CO2e. During the monitoring period, the project disseminated 13,107 Envirofit G3300 stoves and 2,801 Jiko Poa rocket stoves. Technical drawings and diagrams of these wood stoves has been submitted along with this monitoring report. Both the Envirofit and the Jiko Poa stove are considered rocket stoves. This is an efficient cooking stove that uses small diameter wood fuel that is burned in a simple, high-temperature combustion chamber containing an insulated vertical chimney that ensures complete combustion prior to the flames reaching the cooking surface. A rocket stove achieves efficient combustion of the fuel at a high temperature by ensuring a good air draft into the fire, controlled use of fuel, complete combustion of gases released from the fire, and efficient use of the resultant heat. Implementation of the project and stove sales began at the time of the project start date, June 15, 2011, though larger scale sales did not begin until October, 2011, when the first full shipping container of stoves arrived. All stoves sold to date are purchased from manufacturers that manufacture the stoves outside of Uganda, so no manufacturing takes place within the project. Sales occur through multiple channels. UpEnergy employs a direct sales team that sells stoves throughout the country. The company also sells through both retail partners nationwide as well as through larger institutional partnerships, such as savings and loan cooperatives and larger NGOs. B.2. None Post registration changes B.2.1. Temporary deviations from registered monitoring plan or applied methodology None B.2.2. Corrections None B.2.3. Permanent changes from registered monitoring plan or applied methodology None B.2.4. Changes to project design of registered project activity None B.2.5. Changes to start date of crediting period None B.2.6. Types of changes specific to afforestation or reforestation project activity Not applicable as this is not an afforestation or reforestation project activity. 2 Round down function used in excel Version 03.1 Page 3 of 18

4 F-CDM-MR SECTION C. Description of monitoring system UpEnergy records all sales in sufficient detail to satisfy the methodology. UpEnergy collates sales records and back-up paper records. UpEnergy s existing records system accurately tracks sales, inventories and supply and purchases. UpEnergy maintains a full sales database in Excel of all sales that take place, listed according to the sales mechanism, date, and stove type. Sales databases are cross checked with accounting, inventory and security records and other data to ensure consistency and accuracy. Each stove sold has a unique serial number. Serial numbers ensure that not only are stoves not double counted within UpEnergy s sales database, but they are also unique from stoves of other projects in Uganda. Incidentally, the stove models currently being sold in Uganda are not sold by any other distributor and are uniquely identifiable from easy visual inspection, so to date the stoves are easy to tell apart. UpEnergy has implemented a system of end user receipts to be completed by end users upon sale. These receipts include personal contact details of end users and a carbon waiver, which are collated into an electronic database from which project monitoring can be conducted. The excel records are backed up and sent to the project coordinator for checking prior to using them as the basis for monitoring activities. Hard copies of end user receipts are filed as additional backup and for verification purposes, and will be kept for at least two years after the project is complete. For all direct sales to end users, UpEnergy collects this information directly. For retail and agent sales, UpEnergy collects all records of sales to partners and requests that partners collect as much information from end users as possible. The number of stoves sold is a critical piece of data that is tracked. UpEnergy Uganda maintains meticulous sales records, which include a series of checks and balances between responsible staff members to ensure that any errors are caught before final data is compiled. All sales data can be backed by import records of associated products. In order to increase UpEnergy s effectiveness at capturing serial numbers, the company has invested in scanners and micro-laptops, which are used to record receipt and releases of Envirofit stoves in and out of the storage area. This allows UpEnergy employees to quickly read and record serial numbers electronically by scanning bar codes on each product. The UpEnergy sales team then records manually all sales in receipt books. If doubts arise about the serial number which was recorded by the UpEnergy sales team, the receipt book data is then cross-checked with the scanner data recorded by the inventory manager and / or by the security guards. The data manager has been trained to enter data into an Excel sheet and to conduct checks himself. In order to capture whether the number of sales recorded corresponds to actual sales, the data entrant doublechecks on a monthly basis with the sales director if his sales figures coincide with those recorded by the sales team. The data entrant then hands his data over to a senior staff member, the accountant, who then conducts follow-up checks each month. After the records are considered complete, they are forwarded to the CEO for review and spot checks on a quarterly basis. If any errors are found they are returned to the Uganda office for rechecking. Finally, they are entered into the records and plugged into the final output for ER calculation purposes. The CEO further conducts mock audits with the Uganda team at least twice per year to ensure that the project is fully prepared for the audit process. Monitoring tasks, such as kitchen surveys (KSs, kitchen performance tests (KPTs) (also referred to in the PDD as baseline/project fuel tests), assessment of leakage, usage surveys, leakage assessment and measurement of social and environmental indicators are handled by a third party, the Center for Integrated Research and Community Development Uganda (CIRCODU). A baseline fuel test and project fuel test (collectively as part of the KPT) were performed it was estimated that there was no increase in biomass consumption, so no question of leakage. CIRCODU is a group of experts specialized in household energy studies and surveying. CIRCODU conducted laboratory and in-field stove testing services to the first stove projects in Uganda, Tanzania and Gambia. The organization has conducted Kitchen Performance Tests, Version 03.1 Page 4 of 18

5 F-CDM-MR Stove Usage Monitoring and Emissions Testing, Kitchen Surveys and Usage surveys among other activities. CIRCODU does not have any commercial interests in Envirofit or Jiko Poa stoves, or in UpEnergy. The integrity of data is constantly cross checked, including serial numbers, sale date, number of stoves purchased and end user contact information, with their original sources to ensure consistency and avoid mistakes. All original surveys and associated data are kept on file with CIRCODU. A rigorous monitoring of the project activity has been ongoing per schedule below: Date Activity Purpose 15 June 2011 to date Sales recording Establish sales database to track number of stoves sold and determine clusters for kitchen surveys June August, 2011 Baseline Kitchen Surveys Determine baseline scenarios (clusters) November, 2012 Baseline Kitchen Performance Tests Determine baseline and project level wood consumption August, 2011 Non-Renewable Biomass Baseline Study Determine percentage of nonrenewable biomass November, 2012 Monitoring Kitchen Surveys Determine if clusters are still representative Sales records and results of kitchen surveys are first captured in paper form then compiled in a Microsoft Excel spreadsheet. Records will be kept for two years after the project activity is completed. Monitoring data is analyzed using Microsoft Excel, Stata (Data Analysis and Statistical Software) and SAS (Statistical Analysis Software). It is instructive to point out how stoves should be properly cared for and maintained in order to detail how this project addresses with maintenance issues. Users are instructed on these care and use instructions at point of sale, while pictorial instructions included with the stove packaging reinforce these messages. Any outages and maintenance issues are accounted for in the usage parameter, as measured by CIRCODU among a random sample of users. This usage parameter is included in the ER calculations and thus ERs are discounted for any stoves not in use due to maintenance issues. In addition, CIRCODU conduct home visits on a subsection of end users to complete surveys required by the methodology. During these visits, proper use of the stove is often discussed. UpEnergy Uganda also follows up with users through its extensive sales network. While these visits are done to better understand customer needs, they also serve to reinforce proper use principles outlined above. SECTION D. Data and parameters D.1. Data and parameters fixed ex ante or at renewal of crediting period Value(s) applied): EF b,co2 kg CO2/TJ CO2 emission factor arising from use of fuels in baseline scenario IPCC defaults 112,000 Deemed valid by GS VER Methodology 2006 IPCC Guidelines for National Greenhouse Gas Inventories When EF is in units of tco2/t_fuel, NCV term will be removed from emission calculations. Term can include a combination of emission factors from fuel production, transport, and use. Version 03.1 Page 5 of 18

6 F-CDM-MR Measuring emission factors from stove technologies is costly and difficult to do accurately. Lacking measurable emission factors from the project technologies, PP applies default IPCC emission values. Value(s) applied): EF b,nonco2 kg CO2/TJ Non-CO2 emission factor arising from use of fuels in baseline scenario - IPCC defaults in Second Assessment Report, IPCC 2006 Guidelines for National Greenhouse gas Inventories 7540 kg CO 2 /TJ Deemed valid by GS VER Methodology Term can include a combination of emission factors from fuel production, transport, and use. Measuring emission factors from stove technologies is costly and difficult to do accurately. Lacking measurable emission factors from the project technologies, PP applies default IPCC emission values. Value(s) applied): EF p,co2 kg CO2/TJ CO2 emission factor arising from use of fuels in project scenario IPCC 2006 Guidelines for National Greenhouse gas Inventories 112,000 Deemed valid by GS VER Methodology When EF is in units of tco2/t_fuel, NCV term will be removed from emission calculations. Term can include a combination of emission factors from fuel production, transport, and use. Measuring emission factors from stove technologies is costly and difficult to do accurately. Lacking measurable emission factors from the project technologies, PP applies default IPCC emission values. Value(s) applied): EF b,nonco2 kg CO2/TJ Non-CO2 emission factor arising from use of fuels in project scenario Options: IPCC defaults, credible published literature, project-relevant measurement reports, or project-specific field tests prior to first verification. Chosen: - IPCC defaults in Second Assessment Report, IPCC 2006 Guidelines for National Greenhouse gas Inventories 7540 kg CO 2 /TJ Version 03.1 Page 6 of 18

7 Deemed valid by GS VER Methodology Term can include a combination of emission factors from fuel production, transport, and use. F-CDM-MR Measuring emission factors from stove technologies is costly and difficult to do accurately. Lacking measurable emission factors from the project technologies, PP applies default IPCC emission values. Value(s) applied): NCV b TJ/ton Net calorific value of the fuel used in the baseline IPCC default value. Reference: 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2: TJ/ton Adopt IPCC default values. Net Calorific Values were not measured in actual baseline, thus the project uses IPCC default values. When EF is in units of tco2/t_fuel, the NCV term will be removed from emission calculations. Value(s) applied): NCV p TJ/ton Net calorific value of the fuel used in the project IPCC default value for wood. Reference: 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2: TJ/ton Adopt IPCC default values. Net Calorific Values were not measured in the project, thus the project uses IPCC default values. When EF is in units of tco2/t_fuel, the NCV term will be removed from emission calculations. This has same value as NCV baseline as the project reduces use of the same fuel. D.2. Data and parameters monitored Measured/ Calculated / Default: f nrb,i,y Fraction Non-renewability status of woody biomass fuel in scenario i during year y Calculated Uganda NRB study, pg 7. Version 03.1 Page 7 of 18

8 Value(s) of monitored parameter: Monitoring equipment: Measuring/ Reading/ Recording frequency: Calculation method (if applicable): QA/QC procedures: 0.93 None Only if leakage assessment and/or baseline/project studies results along the crediting period suggest NRB may be changing, which was not the case during this monitoring period.. Calculated Transparent data calculations that rely upon third party reports and are easily verifiable. To discount ERs such that no ERs are generated associated with saving renewable biomass. NRB assessment may be used for multiple scenarios F-CDM-MR Measured/ Calculated / Default: Value(s) of monitored parameter: Monitoring equipment: Measuring/ Reading/ Recording frequency: Calculation method (if applicable): QA/QC procedures: P b,y tons/hh-yr, or Kg/hh/day Quantity of fuel that is consumed in baseline scenario b during year y Measured Carbon Baseline and Project Assessment of the Envirofit G3300 and Jiko Poa Improved Wood Stoves, pg tons/hh-yr, or Kg/hh/day ElectroSamson Digital Hand Held Scales Updated every two years, or more frequently Sampling Transparent data analysis and reporting, clustered random sampling of prospective customers that fit the scenario characteristics, fuel savings calculated to a 90/30 level of precision. Basis for calculating fuel savings and thus ER calculations on a per stove basis. A single baseline fuel consumption parameter is weighted to be representative of baseline technologies being compared for project crediting. Measured/ Calculated / Default: Value(s) of monitored parameter: Monitoring equipment: P p,y tons/hh-yr, or Kg/hh/day Quantity of fuel that is consumed in project scenario b during year y Measured Carbon Baseline and Project Assessment of the Envirofit G3300 and Jiko Poa Improved Wood Stoves, pg 11 and 12. Envirofit G tons/hh-yr, or Kg/hh/day Jiko Poa tons/hh-yr, or Kg/hh/day ElectroSamson Digital Hand Held Scales Version 03.1 Page 8 of 18

9 Measuring/ Reading/ Recording frequency: Calculation method (if applicable): QA/QC procedures: Updated every two years, or more frequently Sampling Transparent data analysis and reporting, clustered random sampling of prospective customers that fit the scenario characteristics, fuel savings calculated to a 90/30 level of precision. F-CDM-MR Basis for calculating fuel savings and thus ER calculations on a per stove basis. A single project fuel consumption parameter is weighted to be representative of the quantity of project technologies of each age being credited in a given project scenario Measured/ Calculated / Default: Value(s) of monitored parameter: Monitoring equipment: Measuring/ Reading/ Recording frequency: Calculation method (if applicable): QA/QC procedures: U p,y Percentage Usage rate in project scenario p during year y Measured Carbon Baseline and Project Assessment of the Envirofit G3300 and Jiko Poa Improved Wood Stoves, pg 9. 93% NA Annual or more frequently, in all cases on time for any request for issuance NA Transparent data analysis and reporting. Random sample of users that well exceeded the minimum sample size requirements of the methodology were surveyed to determine usage. Survey conducted by a third party. Discount ERs to ensure that no ERs are generated from stoves no longer in use A single usage parameter is weighted to be representative of the quantity of project technologies of each age being credited in a given project scenario. Measured/ Calculated / Default: Value(s) of monitored parameter: Monitoring equipment: N p,y Project technologies credited (units) Technologies in the project database for project scenario p through year y Measured Total sales report 15,908 stoves sold, of which 13,107 were Envirofit G3300s and 2,801 were Jiko Poas. Redmark Bar Code Scanners, manual warranty cards and Microsoft Excel Version 03.1 Page 9 of 18

10 Measuring/ Reading/ Recording frequency: Calculation method (if applicable): QA/QC procedures: Continuous NA Transparent data analysis and reporting, dedicated staff charged with collecting and entering data on a daily basis, checks between staff members in place to ensure data accuracy. Determines the number of units to be credited. The total sales record is divided based on project scenario to create the project database F-CDM-MR Measured/ Calculated / Default: Value(s) of monitored parameter: Monitoring equipment: Measuring/ Reading/ Recording frequency: Calculation method (if applicable): QA/QC procedures: X i,y Percentage Proportion of project technologies implemented on the non-institutional biomass users: rural cluster in year y Measured By means of the warranty cards kept on file in hard copy in the office. 100% NA Continuous NA Transparent data analysis and reporting Determines the number of units to be credited A single parameter is weighted to be representative of the quantity of project technologies being credited in each cluster. This value will be applied to N for the same cluster at the post calculations if the proportion of technologies being sold in each cluster differs from the fixed baseline. Measured/ Calculated / Default: Value(s) of monitored parameter: Monitoring equipment: Measuring/ Reading/ Recording frequency: Calculation method (if applicable): LE p,y t_co2e per year Leakage in project scenario p during year y Measured Carbon Baseline and Project Assessment of the Envirofit G3300 and Jiko Poa Improved Wood Stoves, pg 2. 0 NA Every two years Surveys and kitchen performance tests Version 03.1 Page 10 of 18

11 QA/QC procedures: F-CDM-MR Transparent data analysis and reporting. The kitchen performance test is used to quantitatively determine the amount of fuel saved. This test subsumes most possible sources of leakage, thus provides values that are already discounted accordingly. To determine and quantify and sources of leakage and discount ERs accordingly. Aggregate leakage can be assessed for multiple project scenarios, if appropriate Gold Standard sustainable development indicators: As outlined in the Gold Standard Passport, four of the below mentioned Gold Standard sustainability indicators are monitored every two years to track the impact of the project, as in line with the PDD. The variables are as follows: Indicator Chosen parameter Air quality: + Positive score Measurement of user perceptions between old stove and new stove: smoke levels, incidence of coughing, incidence of respiratory illness, incidence of itchy eyes, location of stove use. Way of monitoring How Household monitoring surveys were given to a sample of all purchasers of improved cookstoves. When By who Every two years Field-level project partners designated monitoring specialists to conduct surveys at customer households. Indicator Chosen parameter Quality of employment: o Neutral score (advised by GS to monitor) Number of employees trained for the construction and operation of the plant Way of monitoring How Training records. When By who Every two years The owner of the factory. Indicator Chosen parameter Livelihood of the poor: + Positive score Time and money savings due to reduced fuel consumption Way of monitoring How Kitchen Performance Tests were conducted at regular intervals according to the Gold Standard Methodology. This provided information on the percentage of fuel saved that was combined with data regarding the price and time required to collect fuel. When Every two years Version 03.1 Page 11 of 18

12 F-CDM-MR By who Field-level project partners designated monitoring specialists to conduct surveys at customer households. Indicator Access to affordable and clean energy services: + Positive score Chosen parameter Time and money savings due to reduced fuel consumption Way of monitoring How Kitchen Performance Tests were conducted at regular intervals according to the Gold Standard Methodology. This provided information on the percentage of fuel saved that was combined with data regarding the price and time required to collect fuel. When By who Every two years Field-level project partners designated monitoring specialists to conduct surveys at customer households. Although it has not been two years since registration of the project, these indicators were nonetheless investigated during the most recent kitchen surveys and it will also be done next year. The following results were identified: Indicator Chosen parameter Air quality: + Positive score Measurement of user perceptions between old stove and new stove: smoke levels, incidence of coughing, incidence of respiratory illness, incidence of itchy eyes, location of stove use. Version 03.1 Page 12 of 18

13 F-CDM-MR Result During the monitoring kitchen survey, users were asked questions about the perceived impact of the stove on their health: Itchy Eyes Interviewees were asked the question, How often do you experience itchy eyes during cooking on the Envirofit or Jiko Poa stove compared with the time before you started using your new stove? Out of 115 respondents, 3% reported experiencing more itchy eyes with the new stove compared to 21% that reported experiencing less itchy eyes with the new stoves. 8% reported feeling the same while 69% reported never experiencing itchy eyes before and after purchase of new stove. Attacks of Shortness of Breath Interviewees were asked the question, How often have you had an attack of shortness of breath that came on when you were not doing anything strenuous while using your Envirofit or Jiko Poa stove compared to the time before using your new stove? Out of 115 responses, 3% reported experiencing more attacks with the project stoves compared to 19% who experienced less attacks of shortness of breath when using the new stove. 2% reported feeling the same while 77% never experienced the attacks before and after use of the project stove. Attacks of Coughing Interviewees were asked the question, How often have you had an attack of coughing while using your Envirofit or Jiko Poa stove compared to the time before using your new stove? Out of 114 respondents, 47% indicated that they never have attacks of coughing before and after use of project stove. 19% of respondents reported that they have fewer attacks of coughing since purchasing the new stove while 12% reported more cough attacks with the use of new stove. 21% reported feeling the same before and after use of project stove. 3 Indicator Chosen parameter Result Quality of employment: o Neutral score (advised by GS to monitor) Number of employees to be trained for the construction and operation of the plant There are currently no factories within the project boundary that are manufacturing the stoves being sold. Indicator Chosen parameter Result Livelihood of the poor: + Positive score Time and money savings due to reduced fuel consumption Out of 125 HHs that responded to the monitoring kitchen survey, 83 purchased fuel while 42 collected their fuel. Prior to obtaining 3 Carbon Baseline and Project Assessment of the Envirofit G3300 and Jiko Poa Improved Wood Stoves, Center for Integrated Research and Community Development Uganda (CIRCODU), December Version 03.1 Page 13 of 18

14 F-CDM-MR Envirofit or Jiko Poa stoves, the average amount of money spent by a household on fuelwood was approximately 1,500 UG shillings per day. After purchase of the Envirofit or Jiko Poa stove, the average amount of money spent on fuelwood was approximately 1,000 UG shillings per day. This resulted in an average savings of 500 UG shillings per day for each household. The average amount of time spent collecting fuelwood before purchase of an Envirofit or Jiko Poa stove was 66 minutes. After obtaining an Envirofit or Jiko Poa stove, the average amount of time spent collecting fuelwood was 22 minutes. This resulted in an average savings of 44 minutes per day for each household. 4 There are currently 15,908 stoves in operation, 66% (83 of 125) of whom buy their wood while 34% (42 of 125) collect wood. Thus the total number of wood buyers are in aggregate saving 5,249,640 UG shillings per day (15,908 stoves x.66 x 500 UG shillings). Similarly, the wood collectors are saving 3966 hours each day (15,908 stoves x.34 x 44 minutes). Indicator Access to affordable and clean energy services: + Positive score Chosen parameter Results Time and money savings due to reduced fuel consumption See results from Livelihood of the poor above. D.3. Implementation of sampling plan As outlined in detail in the report Carbon Baseline and Project Assessment of the Envirofit G3300 and Jiko Poa Improved Wood Stoves, CIROCDU, December, 2012, the sampling plan followed the methodology being applied. 130 Kitchen Surveys were collected in total by a field team of 8 plus one supervisor November and December The Kitchen Survey households were chosen from UpEnergy s sales record inside of the Northern, Central, Eastern and Western regions, covering 15 districts. The sales records were used to target areas with high concentrations of sales of the stove. The usage survey was administered between November and December, 2012 and covered 127 stoves that were purchased by customers at least 6 months (0.5 years) prior to taking part in the survey, as required by the methodology for stoves sold during the first year of a project ( year 1 stoves). Kitchen Performance Tests (KPTs) were performed in 25 households (HHs) in the Central and Western Regions by a field team of 4 plus one supervisor in November The KPT HHs were selected using screening criteria based on Baseline Kitchen Surveys conducted in 2011 so as to be representative of the typical UpEnergy stove customer. 12 KPTs in 5 zones of Masheruka Subcounty, Sheema District for Western Region 13 KPTs in 3 zones of Wobulenzi Subcounty, Luwero District for Central Region The raw KPT data was analyzed to yield fuel use and fuel savings in terms of kilograms per HH per day. The t-test p-values in shown in CIRCODU s report reveal that all fuelwood savings were significant at the 99+% level. As required by the Gold Standard Methodology, the 90/30 rule was applied to the fuel savings values (for all 25 KPT HHs), testing whether or not there is 90% confidence that the observed mean is within 30% precision of the true population value. To determine whether the sample size was large enough to meet the 90/30 rule, the margin of error was calculated using the following formula: margin of error = [1.66 * s/ n], 4 Carbon Baseline and Project Assessment of the Envirofit G3300 and Jiko Poa Improved Wood Stoves, Center for Integrated Research and Community Development Uganda (CIRCODU), December Version 03.1 Page 14 of 18

15 F-CDM-MR where s is the standard deviation and n is the sample size. If the margin of error is less than or equal to 30% of the sample mean, the 90/30 rule is satisfied and the actual fuel use sample means are used in quantifying carbon credits. The calculations performed in CIRCODU s study show the margin of error and 30% of the sample mean values for all fuel savings values. SECTION E. Calculation of emission reductions or GHG removals by sinks E.1. Calculation of baseline emissions or baseline net GHG removals by sinks In this project, the baseline and project fuels are the same, as are baseline and project emissions factors. In this case it is necessary to use equation (1) in the methodology, which combines the calculation of baseline, project and leakage into one equation rather than separating them out. See section E.4. for this consolidated equation. E.2. Calculation of project emissions or actual net GHG removals by sinks NA see section E.1. for explanation and section E.4. for consolidated calculations. E.3. Calculation of leakage Leakage was reassessed during the most recent monitoring kitchen performance test and kitchen surveys (approximately one year after registration), which concluded that there are no sources of leakage. It was assessed through analysis of both monitoring survey results and kitchen performance test results. This includes assessment of a number of leakage sources: a) displaced technologies being used outside project boundary, b) biomass saved is used by non-project users, c) project significantly impacts non-renewable biomass fraction, d) compensation for loss of space heating and e) successful marketing leading to substation of cleaner technologies. There is no evidence that additional leakage is present beyond that which is already incorporated in the paired KPT approach to measuring fuels savings. These findings are outlined in the CIRCODU report, section 2.1. E.4. Summary of calculation of emission reductions or net anthropogenic GHG removals by sinks When the baseline fuel and the project fuel are the same and the baseline emission factor and project emission are considered the same, as is the case with this project, the overall GHG reductions achieved by the project activity in year y are calculated as follows: ER y = Σ b,p (N p,y * U p,y * P p,b,y * NCV b,fuel * (fnrb,b,y * EF fuel,co2 +EF fuel,nonco2 )) Σ LE p,y Where: Σ b,p N p,y U p,y P p,b,y fnrb,b,y NCV b,fuel EF b,fuel,co2 EF b,fuel,nonco2 LE p,y Sum over all relevant (baseline b/project p) couples Cumulative number of project technology-days included in the project database for project scenario p against baseline scenario b in year y Cumulative usage rate for technologies in project scenario p in year y, based on cumulative adoption rate and drop off rate revealed by usage surveys (fraction) Specific fuel savings for an individual technology of project p against an individual technology of baseline b in year y, in tons/day, as derived from the statistical analysis of the data collected from the field tests Fraction of biomass used in year y for baseline scenario b that can be established as non-renewable biomass (drop this term from the equation when using a fossil fuel baseline scenario) Net calorific value of the fuel that is substituted or reduced (IPCC default for wood fuel, TJ/ton) CO2 emission factor of the fuel that is substituted or reduced. 112 tco2/tj for Wood/Wood Waste, or the IPCC default value of other relevant fuel Non CO2 emission factor of the fuel that is reduced Leakage for project scenario p in year y (tco2e/yr) Envirofit G3300: Substituting for values for one Envirofit G3300 stove in use for one year, we get: Version 03.1 Page 15 of 18

16 Σ b,p 1 (one stove only for this sample calculation) N p,y 365 U p,y 0.93 P p,b,y kg/hh-day 5, or tons/day fnrb,b,y 0.93 NCV b,fuel TJ/ton EF b,fuel,co2 112 tco2/tj EF b,fuel,nonco kg CO2/TJ or 7.54 tco2/tj LE p,y 0 F-CDM-MR Thus the calculation for one Envirofit G3300 stove in use for one full year is as follows: ER y = 1 (365 * 0.93 * * * (0.93 * 119.5) - 0 ER y = 1.96 tons CO2e per year Jiko Poa: Substituting for values for one Jiko Poa stove in use for one year, we get: Σ b,p 1 (one stove only for this sample calculation) N p,y 365 U p,y 0.93 P p,b,y kg/hh-day 6, or tons/day fnrb,b,y 0.93 NCV b,fuel TJ/ton EF b,fuel,co2 112 tco2/tj EF b,fuel,nonco kg CO2/TJ or 7.54 tco2/tj LE p,y 0 Thus the calculation for one Jiko Poa stove in use for one full year is as follows: ER y = 1 (365 * 0.93 * * * (0.93 * 119.5) - 0 ER y = 2.01 tons CO2e per year Sample for one of each stove for one year: Item Baseline emissions or baseline net GHG removals by sinks (t CO 2 e) Project emissions or actual net GHG removals by sinks (t CO 2 e) Leakage (t CO 2 e) Emission reductions or net anthropogenic GHG removals by sinks (t CO 2 e) Total (G3300) NA NA Total (JKP) NA NA Description of how the formulas are applied in the excel carbon calculator The Emissions Reduction (ER) Calculator calculates total emissions reductions on a daily basis for each stove in the Total Sales Database. The ER Calculator is run separately for each stove model that is included in the project. A different file for each size accompanies this report: UpEnergy GS VER calculator_enft.xlsx UpEnergy GS VER calculator_jp.xlsx 5 Carbon Baseline and Project Assessment of the Envirofit G3300 and Jiko Poa Improved Wood Stoves, Center for Integrated Research and Community Development Uganda (CIRCODU), December 2012, pg Carbon Baseline and Project Assessment of the Envirofit G3300 and Jiko Poa Improved Wood Stoves, Center for Integrated Research and Community Development Uganda (CIRCODU), December 2012, pg 12. Version 03.1 Page 16 of 18

17 Consolidated sales record_2011, 2012 thru Dec 31.xlsx Summary sheet.xlsx F-CDM-MR The calculator accounts for the day that each stove is put into use, then calculates the usage of each stove for each day. It factors in the assumed annual drop-off and other monitored parameters, which will be included as the project progresses and more monitored data is compiled. Stove usage is calculated in stoves-years, the number of stove days the stove was used divided by 365 (days). The Assumptions worksheet of each ER Calculation workbook states the Usage Rates and Fuel Savings (kg/stove-day). UpEnergy s sales are listed in the Project Database worksheet, which links as an input to each carbon calculator on the Project Database tab. Stove quantities and Usage Start-Dates are linked from the Usage Record worksheet to the Age 0-1, Age 1-2, Age 2-3, and Age 3-4 worksheets. These four Use worksheets calculate usage on a daily basis for each day of the project period (x-axis) for each Usage Start-Date and the corresponding stove quantity (y-axis). The four Use worksheets are separate to account for stove usage at different ages. Usage for all stoves aged 0-1 year, which are in their 1st year of use, is accounted in the Age 0-1 worksheet, usage for all stoves aged 1 2 years, which are in their 2nd year of use, is accounted in the Age 1-2 worksheet, etc. Daily stove use (stove-days) is calculated using Annual Usage Rates for stoves of different ages. The Annual Usage Rates are calculated to reflect annual usage drop-off from the Cumulative Usage Rate (Up,y) determined in the monitoring studies. The Annual Usage Rate is the average annual drop-off in usage. That rate is applied to all stoves equally over the full spectrum of stoves in use in the project (1st year, 2nd year, etc.). Calculating Annual Usage Rates from Cumulative Usage Rates is straightforward: If 100 of 100 monitored stoves are still in use after one year, the Cumulative Usage Rate after one year is 100%. If 50 of the original 100 stoves are still in use after two years, the Cumulative Usage Rate after two years is 50%. The Annual Usage Rate in year 1 is 100%. The Annual Usage Rate in year 2 is 75% ((100%+50%)/2). Once daily stove usage (stove-days) is accounted in the Use worksheets for stoves from each Usage Start-Date, it is aggregated on a daily and quarterly basis at the top of each Use worksheet. Quarterly stove usage from each Use worksheet, accounted in stove-days, is converted to quarterly stove usage in stove-years on the ER Calculations worksheet by dividing by 365 days. Finally, on the ER Calculations worksheet, aggregate quarterly stove use (stove-years) is multiplied by ERs per stove-year (tco2e/stove-year) to calculate total ERs on a quarterly basis. These values from the ER Calculations workbook of each stove model are linked to the Summary Sheet file where ERs from all stove models are combined and the verification period is specified for crediting. Note that since the verification period does not coincide perfectly with the start of quarters or months, the Summary Sheet file is linked to the ER calculations worksheet to account for specific days outside the boundaries of whole quarters or whole months (15-30 June, 2011). E.5. Comparison of actual emission reductions or net anthropogenic GHG removals by sinks with estimates in registered PDD Item Emission reductions or GHG removals by sinks (t CO 2 e) Values estimated in ex-ante calculation of registered PDD Year Tons CO2e , ,233 Actual values achieved during this monitoring period Year Tons CO2e ,183 E.6. Remarks on difference from estimated value in registered PDD While the project overall produced more credits than predicted, during 2011 it generated less than half of estimates. GHGs are directly proportional to the number of stoves sold, and thus the number of units in operation and reducing GHGs. Sales in 2011 were significantly lower than anticipated because large scale sales didn t begin until Oct, 2011, with sales prior to this date only occurring at very low, pilot levels. In 2012, 7 Round down function used in excel Version 03.1 Page 17 of 18

18 F-CDM-MR sales significantly exceeded those of our estimates. This is because the stoves being sold are priced attractively and are very popular among end users. It is also worth noting that although the PDD contemplates selling multiple types of stoves, including charcoal stoves, only wood stoves were sold during this monitoring period. However, this did not have an effect on either increasing or decreasing the number of ERs during this monitoring period compared with the PDD projections. E.7. Actual emission reductions or net anthropogenic GHG removals by sinks during the first commitment period and the period from 1 January 2013 onwards Item Emission reductions or GHG removals by sinks (t CO 2 e) Actual values achieved up to 31 December 2012 Actual values achieved from 1 January 2013 onwards 20,042 8 NA Document information Version Date Description January 2013 Editorial revision to correct table in section E December 2012 Revision required to introduce a provision on reporting actual emission reductions or net anthropogenic GHG removals by sinks for the period up to 31 December 2012 and the period from 1 January 2013 onwards (EB70, Annex 11) March 2012 Revision required to ensure consistency with the "Guidelines for completing the monitoring report form" (EB 66, Annex 20) May 2010 EB 54, Annex 34. Initial adoption. Decision Class: Regulatory Document Type: Form Business Function: issuance Keywords: monitoring report, performance monitoring 8 Round down function used in excel Version 03.1 Page 18 of 18