SUSTAINABILITY VERIFICATION REPORT For the GS VER Programme of Activity

Transcription

1 SUSTAINABILITY VERIFICATION REPORT For the GS VER Programme of Activity Indonesia Domestic Biogas Programme of Activities (IDBP) (ID1172) In The Republic of Indonesia Report No. Version NO. 01.4, Designated Operational Entity (DOE) TÜV Rheinland (China) Ltd Unit 707, AVIC Building, No. 10B, Central Road, East 3 rd Ring Road, Chaoyang District, Beijing , People s Republic of China Tel.: (ext.169) FAX: doe@chn.tuv.com

2 Team leader Acting Team Leader Local Expert Team Member (Auditor) Technical Expert Acting Tech. Expert Trainee Auditor Technical Reviewer Expert to TR Trainee TR Verification Report I. Project data: Project title: PoA: Indonesia Domestic Biogas Programme of Activities (IDBP) (ID1172) VPA-1: Indonesia Domestic Biogas Programme of Activities (IDBP) (ID1172), VPA-1 (GS1174) Version of GS rules: 2.1 Version No.: 01.4 Report No.: st VE Monitoring period: 01/06/ /05/2013 Date of current revision: Methodology: Technology and Practices to Displace Decentralized Thermal Energy Consumption, Version 01.0 Date of first issue: Registration detail CDM/JI reference No.: N/A GS ID: 1172 (PoA), 1174 (VPA-1) Uploading of MR: Average emission reductions: GHG reducing measure/technology: The GS-VER monitoring report (Version 1.0, 11/10/2013) was uploaded to the Registry on 18/10/2013. Estimated: 29,672 tco 2 e from 01/06/2011 to 31/05/2013 including both days based on annual emission reductions as indicated in the approved ER calculation spreadsheet for registration Verified: KP1 1 : 22,187 tco 2 e KP2: 10,859 tco 2 e 1. Avoiding CH 4 emissions by controlled manure management system (biodigesters) 2. Displacing fossil fuel consumption by renewable energy (recovered biogas) Party Project participants Party considered a project participant Indonesia (Host) Hivos No Netherland Hivos 2 No Contract party II. Verification Team: Verification Team Role Full name Affiliation TÜV Rheinland Appointed for Sectoral Scopes (Technical Areas) Mr. Harold Hai 1.2, 3.1, 6.1, 13.1 X Mr. Timothy Chan China 1.2, 2.2, 13.1 X X X Ms. Ginger Jiang (until 1.2 X 21/02/2014) Mr. Walter Tang China 1.1, 1.2, 2.1, 2.2, 3.1, 4.3, 4.5, 13.1 X Verification Phases Desk Review Follow up interviews Corrective Actions / Clarifications Requested Resolution of outstanding issues III. Verification Report: Verification Status Full Approval and Submission for Issuance Rejected Final approval Released Distribution By: Mr. Henri Phan No distribution without permission from the Client or responsible organizational unit 1 The first Kyoto Protocol commitment period (i.e. KP1) and the second commitment period 2 (KP2) 2 Hivos is the short term of "Humanist Institute for Co-operation with Developing Countries" in Dutch language. Template Version 01 (12/08/2013) Rev: 01.4 Page 1

3 Date: Unrestricted distribution Template Version 01 (12/08/2013) Rev: 01.4 Page 2

4 Abbreviations AWMS BE y CAR CDM CER CH 4 CL CME CO 2 DNA DOE DR EB EIA ER GHG GS GSF I IPCC HH Hivos kw th LSC LE y MCF MDGs MoV MS NGO NRB O&M OSV PDD PE y PP SD SNV SO 2 TPDDTEC UNFCCC VER VGS VPA VVS Animal Waste Management System Baseline Emissions Corrective Action Request Clean Development Mechanism Certified Emission Reduction Methane Clarification Request Coordination/ Management Entity Carbon Dioxide Designated National Authority Designated Operational Entity Document Review Executive Board Environmental Impact Assessment Emission Reductions Greenhouse Gas Gold Standard Gold Standard Foundation Interview Intergovernmental Panel on Climate Change Household Humanist Institute for Co-operation with Developing Countries Kilo Watt Thermal Local Stakeholder Consultation Leakage Emissions Methane Conversion factor Millennium Development Goals Means of Verification Manure System Non-Government Organisation Non-Renewable Biomass Operation and Maintenance On Site Visit Project Design Document Project Emissions Project Participant Sustainable Development The Netherlands Development Organization Sulphur Dioxide Technologies and Practices to Displace Decentralized Thermal Energy Consumption United Nations Framework Convention on Climate Change Voluntary Emission Reductions Voluntary Gold Standard Voluntary Project Activity Validation and Verification Standard Template Version 01 (12/08/2013) Rev: 01.4 Page 3

5 Verification opinion summary The verification team assigned by the DOE (TÜV Rheinland (China) Ltd.) concludes that the VPA-1 Indonesia Domestic Biogas Programme of Activities (IDBP) (ID 1172), VPA-1 (GS1174) of GS VER Programme of Activity Indonesia Domestic Biogas Programme of Activities (IDBP) (ID 1172) in Indonesia, as described in the registered PDD (Version 6.0, 21/10/2013) as well as the VPA-DD (version 7.0, 06/11/2013) and monitoring report (Version 5.0, 07/07/2014), meets all relevant requirements of Gold Standard Foundation and UNFCCC. The programme reduces GHG emissions 1.) by avoiding methane emission from conventional livestock manure treatment, and 2.) by the utilization of biogas, which is recovered from domestic biogas digester, for the replacement of fossil fuel consumption for daily cooking. This verification covers the 1 st monitoring period from 01/06/2011 to 31/05/2013 (including both days) in the first crediting period. GS-VER project verification methodology and process The verification of both the emission reduction and sustainability monitoring for the VPA-1 of this Gold Standard VER programme of activities (PoA) was conducted at the same time. The verification has been performed as described in the Chapter 4 of Gold Standard Toolkit version 2.1 and constitutes the following steps: - Uploading the GS monitoring report including GHG and sustainability monitoring (first delivery to GS officer on 18/10/2013, successful submission to GS registry on 09/12/ ) - Uploading the verification workplan (first delivery to GS officer on 18/10/2013, successful submission to GS registry on 09/12/ ) - Desk review of the monitoring report and the relevant documents At the time of initial review of the verification, the registration of the PoA had not yet completed. The preregistered PoA-DD, VPA-DD, Passports and LSC report were reviewed. 1. Pre-registered PoA-DD (Version 5.0, 10/10/2013) 2. Pre-registered VPA-DD (VPA-1, Version 5.0, 10/10/2013) 3. Pre-registered PoA-Passport (10/10/2013) 4. Pre-registered VPA-Passport (10/10/2013) 5. Pre-registered GS Local Stakeholder Consultation Report (Version 0.6) 7. Preliminary Monitoring Report (Version 1.0, 11/10/2013) 6. Pre-registered Validation Report (Version 1.5, 10/10/2013) 8. 2 nd round PoA registration review form, 17/09/ nd round (final) VPA-1 registration review form, 17/09/ On-site assessment (21/10/ /10/2013) - Issuance of draft Verification Protocol (Table 1 in Appendix A) with corrective action request (CARs) and clarification request (CLs) (Table 2 in Appendix A) - Desk review on the following revised documents and other relevant documents: On 03/12/2013, the registration was approved. The registered PoA-DD, VPA-DD, Passport and LSC report were hence used as the reference for the verification. 1. Registered PoA-DD (Version 6.0, 21/10/2013) 2. Registered VPA-DD (VPA-1, Version 7.0, 06/11/2013) 3. Registered PoA-Passport (10/10/2013) 4. Registered VPA-Passport (10/10/2013) 3 Successful submission to GS registry was done after the confirmation of PoA registration on 03/12/ Successful submission to GS registry was done after the confirmation of PoA registration on 03/12/2013. Template Version 01 (12/08/2013) Rev: 01.4 Page 4

6 5. Registered GS Local Stakeholder Consultation Report (Version 0.6) 7. Revised Monitoring Report (Final Version: 5.0, 07/07/2014) 9. 5 th round (final) VPA-1 registration review form, 03/12/ Registered Validation Report (Version 1.8, 03/12/2013) 8. 4 th round (final) PoA registration review form, 05/11/ Issuance Review Feedback - Round II, 25/06/ Review of the proposed corrections and clarifications - Issuance of the final verification report and protocol The programme of activities was correctly implemented according to the applied monitoring methodology, and the registered PDD, VPA-DD and GS passport. The monitoring surveys were carried out in accordance with the registered PDD, VPA-DD and Passports in order to collect the monitoring data. The verification team is able to verify the amount of achieved GHG emission reductions as well as the contribution to Indonesia s sustainable development. The DOE is therefore pleased to issue a positive verification opinion indicated in the attached Certification statement. Template Version 01 (12/08/2013) Rev: 01.4 Page 5

7 TABLE OF CONTENTS 1. INTRODUCTION Objective Scope 7 2. METHODOLOGY Desk review On-site visit and follow-up interviews with project stakeholders Resolution of outstanding issues Internal quality control Verification Team VERIFICATION FINDINGS Project implementation Compliance of the monitoring plan with the monitoring methodology Compliance of actual monitoring with monitoring plan in the PDD and GS Passport Assessment of data and calculation of greenhouse gas emission reductions Assessment of contribution to sustainable development Status of implementation of continuous input/ Grievance mechanism & feedback received Issues remaining from the validation/ previous verification period Forward Action Request 54 Appendix A: Verification Protocol Appendix B: Certification statement Appendix C: Certificates of Competence Template Version 01 (12/08/2013) Rev: 01.4 Page 6

8 1. Introduction The Contracting Client Organization has commissioned the DOE TÜV Rheinland (China) Ltd. to perform a verification of the VPA-1 Indonesia Domestic Biogas Programme of Activities (IDBP) (ID 1172), VPA-1 (GS1174) of GS VER Programme of Activity Indonesia Domestic Biogas Programme of Activities (IDBP) (ID 1172) in host country (hereafter the programme or the PoA ). This report summarises the findings of the verification of the VPA-1, performed on the basis of UNFCCC rules and rules of Gold Standard. Verification is required for all registered VER project activities intending to confirm their achieved emission reductions and proceed with request for issuance of VER and sustainable development benefits. 1.1 Objective Verification is the periodic independent review and ex post determination of both quantitative and qualitative information by a Designated Operational Entity (DOE) of the monitored reductions in GHG emissions and sustainable development benefit that have occurred as a result of the registered GS VER project activity during a defined monitoring period. Certification is the written assurance by a DOE that, during a specific period in time, a project activity achieved the emission reductions as verified. The objective of this verification was to verify and certify emission reductions and sustainable development benefit reported for the Indonesia Domestic Biogas Programme of Activities (IDBP) (ID 1172) in Indonesia for the period 01/06/2011 to 31/05/2013. The purpose of verification is to review the monitoring results and verify that monitoring methodology was implemented according to monitoring plan and monitoring data, used to confirm the reductions in anthropogenic emissions by sources is sufficient, definitive and presented in a concise and transparent manner. In particular, monitoring plan, monitoring report and the programme s compliance with relevant UNFCCC and host Party criteria and GS requirement are verified in order to confirm that the programme has been implemented in accordance with the monitoring plan. 1.2 Scope The scope of the verification is: To verify that actual monitoring systems and procedures are in compliance with the monitoring systems and procedures described in the monitoring plan. To evaluate the GHG emission reduction data and express a conclusion with a reasonable level of assurance about whether the reported GHG emission reduction data is free from material misstatement. To verify that reported GHG emission data and sustainability indicators are sufficiently supported by evidence. Where sampling in involved, sampling guidelines are applied to ensure the adequate sampling and survey method is followed in reaching professional judgements. The verification shall ensure that reported emission reductions are complete and accurate in order to be certified. The verification comprises a review of the monitoring report over the monitoring period from 01/06/2011 to 31/05/2013 based on the monitoring plan and GS passport, emission reduction calculation spreadsheet, monitoring methodology and all related evidence provided by project participant(s). On-site visit and stakeholders interviews are also performed as part of the verification process. Template Version 01 (12/08/2013) Rev: 01.4 Page 7

9 2. Methodology The verification consists of the following four phases: 1. Completeness check and upload the Monitoring report to GS registry; 2. Desk review of the monitoring plan, monitoring report, monitoring methodology, project design document, GS passport and other relevant documents; 3. On-site visit (including follow-up interviews with programme stakeholders, when deemed necessary). The on-site assignment includes the following; An assignment of installation, implementation and operation of the programme with respect to registered PDD or approved revised PDD; Review of information flows for generating, aggregating and reporting the monitoring parameters; Interview with relevant personals to determine whether the operational and data collection procedures are implemented and in accordance with monitoring plan of the PDD; Cross check of information and data provided in the monitoring report with logbooks, inventories, purchase records or similar data sources; Review of the implementation of relevant monitoring surveys in-line with the registered sampling plan and related methodology; Check of monitoring equipment s, calibration frequency and monitoring practice in-line with methodology and PDD; Review of assumptions made in calculating the emission reduction; Implementation of QA/QC procedure in-line with the PDD and methodology requirement. To verify the monitoring of the sustainable development indicators. To assess the impact and contribution of the programme to sustainable development. 4. Resolution of outstanding issues and the issuance of the final Verification report and Certification statement. The following sections outline each step in more detail. 2.1 Desk review Table 1. The following table outlines the documentation reviewed during the verification. /1/ /2/ /1.1/ Gold Standard (GS) Requirements and Toolkit, Version 2.1, 01/07/2009 /1.2/ GS Guidance Note, Annex F Revised PoA Rules and Guidance, 22/11/2011 /1.3/ GS Guidance Note, Annex I Guidance on Sustainability Assessment /1.4/ GS Template, Annex K- Outline of Validation and Verification Reports /1.5/ /1.6 /2.1/ /2.2/ /2.3/ /2.4/ /2.5/ GS Rule Updates Grievance Mechanism, Continuous Input/ Grievance Mechanism for Gold Standard, 22/11/2011 GS Rule Updates The application of global warming potential for Gold Standard project activities, Jan 2013 UNFCCC, CDM Validation and Verification Standard (VVS), Version 5.0, CDM-EB65- A05-STAN, 04/10/2013 UNFCCC, Standard For Sampling And Surveys For CDM Project Activities And Programme Of Activities, Version 4.1, 28/11/2013 UNFCCC, Guidelines for sampling and survey for CDM project activities and programmed of activities, Version 03.0, EB75 Annex 08 UNFCCC, Energy Efficiency measures in thermal applications of non-renewable biomass, AMS-II.G, Version 04.0, EB 68 Annex 23 UNFCCC, Guidelines on the applicability of materiality in verification, Version 01.0, EB69 Annex 06 Template Version 01 (12/08/2013) Rev: 01.4 Page 8

10 /3/ /4/ /5/ /6/ /7/ /8/ /9/ /10/ /2.6/ UNFCCC, Standard for application of the global warming potential to Clean Development Mechanism project activities and programmes of activities for the second commitment period of the Kyoto Protocol, Version 01.0, EB69 Annex 03 GS Methodology, Technologies and practices to displace decentralized thermal energy consumption, Version 01.0, 11/04/2011 /4.1/ Pre-registered PoA-DD, Version 5.0, 10/10/2013 /4.2/ Registered PoA-DD, Version 6.0, 21/10/2013 /5.1/ Pre-registered PoA-Passport, 10/10/2013 /5.2/ Registered GS PoA Passport, 10/10/2013 /6.1/ Pre-registered VPA Passport, 10/10/2013 /6.2/ Registered GS VPA Passport, 10/10/2013 /7.1/ Pre-registered GS Local Stakeholder Consultation Report, Version 0.6 /7.2/ Registered GS Local Stakeholder Consultation Report, Version 0.6 /8.1/ Pre-registered VPA-1-DD, Version 5.0, 10/10/2013 /8.2/ Registered VPA-1-DD, Version 7.0, 06/11/2013 /9.1/ Pre-registered validation report, Version 1.6, 19/10/2013 /9.2/ Registered validation report, Version 1.8, 03/12/2013 /10.1/ Preliminary Monitoring Report, Version 1.0, 11/10/2013 /10.2/ Final Monitoring Report, Version 5.0, 07/07/2014 /11/ ER calculations spreadsheet for the 1 st monitoring period /12/ IDBP Database, last update: 24/10/2013 /13/ /14/ /15/ /13.1/ Revised 2006 IPCC Guidelines for National Greenhouse Gas Inventories /13.2/ Table 2.14, IPCC Errata for 2006 IPCC Guidelines for National Greenhouse Gas Inventories, 15/06/2012 << /14.1/ Sampled Household Agreement (Form 03) of VPA-1 for the visited households /14.2/ Sampled Preconstruction Assessment Form (Form 04) of VPA-1 for the visited households /14.3/ Sampled Completion Report (Form 07) of VPa-1 for the visited households /14.4/ Sampled Quality Control Report (Form 05) of VPA-1 for the visited households /14.5/ Sampled After-sale Service (Form 08) of VPA-1 for the visited households /15.1/ MoU Kfw Bankengruppe -Hivos for carbon development, 08/12/2010 /15.2/ Agency Contract, Kfw Bankengruppe - Hivos, 28/02/2011 /16/ Standard Operating Guidelines, IDBP, 29/08/2011 /17/ Bio-slurry utilization manual for biogas users, May 2012 /18/ Operation and maintenance manual for biogas users, Version 2010 /19/ Construction manual for masons and supervisors, Version 2010 /20/ /21/ /20.1/ Mason certificates (Mason name: Salim), 05-11/10/2009 /20.2/ Mason certificates (Mason name: Achiyar), 09-16/08/2010 /21.1/ List of attendance for User Training, East Java, 13/04/2010 /21.2/ List of attendance for User Training, Central Java, 27/04/2010 /22/ Design Consultation Report, Version 1 /23.1/ Stove Test Report, LIPI, 2010 /23/ Indonesian National Standard on LGP Stoves, one burner with mechanic lighter (SNI no. /23.2/ 7368:2007) /24/ FAO Brief on National Forest Inventory Indonesia, 2007 Template Version 01 (12/08/2013) Rev: 01.4 Page 9

11 /25/ FAO Global Forest Resources Assessment Country Report Indonesia, 2010 /26/ PoA s document management schematic chart /27/ OSV photos, fixed traditional stove in kitchen of non-biogas KPT households /28/ /28.1/ Biogas User Survey report Dec 2012, JRI, February 2013 /28.2/ Primary data and analysis of the Biogas User Survey Report 2012, Primary data Biogas User Survey December 2012.xlsx /28.3/ Sampling error calculation spreadsheet for Biogas User Survey 2012 /29.1/ BUS 2012 training records, 08/11/2012 /29/ /29.2/ Biogas User Survey questionnaires template /30/ Sampled Biogas User Survey 2012 questionnaires (visited households) /31/ /31.1/ IDBP Quality Control Procedure, August 2009 /31.2/ Quality Standard, IDBP Quality Control Procedure, August 2009 /32/ JRI. Data processes and control of data collection /33/ Biogas user operation and maintenance manuals (visited households) /34/ Bioslurry application guidelines (visited households) /35/ Photos taken for the nameplate of the visited biodigesters, 22-24/10/2013 /36/ 4 th round (final) PoA registration review form, 05/11/2013 /37/ 5 th round (final) VPA-1 registration review form, 03/12/2013 /38.1/ Stakeholder comments log book, East Java /38/ /38.2/ Stakeholder comments log book, Central Java /39/ Households training records /40/ /40.1/ KPT Training attendance list, 24-25/09/2013 /40.2/ KPT Training photos /41/ Kitchen performance test questionnaire template /42/ /43/ /42.1/ IDBP Annual Report 2009, 15/02/2010 /42.2/ IDBP Annual Report 2010, 28/02/2011 /42.3/ IDBP Annual Report 2011, 29/02/2012 /42.4/ IDBP Annual Report 2012, 28/02/2013 /42.5/ IDBP Interim report, July 2013 Sustainability Verification Report, Biogas Programe for Animal Husbandry Sector of Vietnam (GS1083), TUV Rheinland (China) Ltd., Version 01.4, 21/02/2013 /44/ ER calculation spreadsheet for the estimation at validation /45/ confirmation from Gold Standard Foundation for the approval of the PoA-DD (Version 6.0), VPA-DD (VPA-1, Version 7.0), PoA and VPA Passports (dated 10/10/2013) for registration, 03/12/ /46/ Household Agreement, KBP0004, 24/10/2009 confirmation from Gold Standard Foundation for the acceptance of the usage rate for retroactive /47/ monitoring period, 13/11/2013 /48/ Monthly average temperature, Indonesian Meteorological Climatological and Geophysical Agency /49.1/ BUS (2102) survey questionnaires for Central Java /49/ /49.2/ BUS (2012) survey questionnaires for East Java /50/ Curriculum Vitae of the statisticians of JRI /51/ Training of trainer on Construction and Maintenance of BIRU Biodigester for TEDC Instruction In Indonesia, SNV, April 2010 /52/ Households agreement (9,090 sets) Template Version 01 (12/08/2013) Rev: 01.4 Page 10

12 /53/ /54/ /55/ /53.1/ CDM Pipeline, UNEP Risoe Centre, 01/11/2013 /53.2/ PoA Pipeline, UNEP Risoe Centre, 01/11/2013 Kitchen Performance Test Protocol, Version 3.0, Jan 2007 << >> /55.1/ GS confirmation for the approach for conducting KPT, 08/02/2014 /55.2/ GS confirmation for the deviation of measuring LPG consumption by monitoring the time of consumption, 25/02/2014 /56/ KPT Primary data and analysis spreadsheet /57/ Filled KPT questionnaire and data records sheets (98 sets) /58/ /59/ /58.1/ Comment logbook placed in provincial office /58.2/ Short message service (SMS) Kerosene to LPG conversion Programme in Indonesia, Pertamina (Persero), Indonesia & the World LPG Association /60/ Teodorita Al Seadi, et al. biogas Handbook. University of Southern Denmark Esbjerg, October 2008 /61/ Certificate for weighing stone (500g and 1000g), Department of Industry and Commerce, Baten Provincial Government, 27/01/2014 /62/ Scale calibration forms, Hivos, 23/09/2013 /63/ Issuance Review Feedback Round II, GS, 26/06/2014 /64/ Sampling user survey biogas malfunctioning digesters /65/ Mason training powerpoint presentation 2.2 On-site visit and follow-up interviews with project stakeholders TÜV Rheinland verification team carried out an on-site visit dated (21/10/2013 to 24/10/2013) and performed interviews with the project representatives and stakeholders. The site visit was conducted to verify the accuracy and completeness of the project description as well as monitoring plan specified in the pre-registered PoA-DD, VPA-1-DD, Passports and LSC report. Prior to the interview salient points to be discussed were planned. Date of interview, interviewee and points discussed are given in the following Table 2. If there is any change in between the pre-registered PDD and registered PDD after the OSV, the changes will be reviewed by the verification team based on document review and interviews conducted during the OSV. In case of further document evidence(s) or OSV is needed, the verification team will request for further document evidence(s) from the PP or conduct another OSV. Table 2. VPA(s) that are covered by assessment during the on-site visit On-site visit date: 21-24/10/2013 Nº ID (VPA ref. number) Start date of operation VPA Title Name of VPA implementer VPA-1 GS /10/2009 Indonesia Domestic Biogas Programme of Activities (IDBP) (ID 1172), VPA-1(ID 1174) Hivos The VPA assessed by the verification team and the no. of on-site visit locations are described in the table below: Table 3. Details of locations visited for the respective VPA(s). Template Version 01 (12/08/2013) Rev: 01.4 Page 11

13 Nº Date Country/state/region name Number of places/vpa locations site-visited Comments VPA /10/2013 Indonesia, Central Java and East Java Central Java: Solo (16 households) East Java: Malang (16 households) 30 biodigester users and 2 nonbiodigester households were visited. It covers 2 out of the 8 provinces within the boundary of VPA-1. As per the onsite inspections it was possible to confirm that the same technology is implemented in VPA-1. Based on the monitoring plan defined in the pre-registered PoA-DD, VPA-DD and the respective Passports, the GHG and SD monitoring parameters were verified thorough observations, stakeholder interview and document review. Prior to the interview salient points to be discussed were planned. During the on-site visit, a number of identified stakeholders were interviewed. Date of interview, interviewee and points discussed are given in the following table. Table 4. Interviewed person who provide additional information to the presented documentation Date Name Position / Organization Topic /i/ 24/10/2013 Robert de Groot /ii/ /iii/ 21-24/10/2013 Agi S. Cakradirana Szymon Mikolajczyk /iv/ 21/10/2013 Rita Maria /v/ 22/10/2013 Wichelmus Ceang Programme Manager, Yayasan Rumah Energi (As the management representative) Deputy Programme Manager IDBP, Yayasan Rumah Energi Carbon Consultant, Climate Focus Director, Jakarta Research Institute (JRI) Provincial Manager, IDBP East Java Programme development Crediting and Monitoring period Monitoring responsibilities Actual monitoring implementation procedures IDBP Database management Data collection and management QA/QC Procedures IDBP staff, mason and end-users trainings Baseline determination Monitoring plan Crediting and Monitoring period GHG ER calculations SD Monitoring and reporting QA/QC Biogas user survey design Sample size determination Sample selection procedure Sampling criteria Data analysis Observations from the survey results IDBP Database management Monitoring responsibilities Monitoring implementation Template Version 01 (12/08/2013) Rev: 01.4 Page 12

14 /vi/ /vii/ Slamet Basuki Mada Riani Quality Inspector, IDBP East Java Promotion Officer, IDBP East Java Biogas user survey Kitchen Performance Test procedures QA/QC Monitoring training Bioslurry application Stakeholder comments collection /viii/ 22/10/2013 Sudarno Director, CPO Biodigester construction quality check procedures Operational & maintenance of the biodigester Mason Training Sustainable development /ix/ /x/ /xi/ /xii/ 23/10/2013 Hecari Buyung Reny Indarwati Kristian Adi Chandra Christina Haryanto Putri Promotion Officer, IDBP East Java Quality Inspector, IDBP East Java Admin and Database officer, IDBP East Java Manure management officer, IDBP East Java IDBP Database management Monitoring responsibilities Monitoring implementation Biogas user survey Kitchen Performance Test procedures QA/QC Monitoring training Bioslurry application Stakeholder comments collection /xiii/ /xiv/ /xv/ 23/10/2013 Tri Sugiarto Solihin Salim Manager, KPSP Setia Kawan (CPO) Supervisor of construction team, KPSP Setia Kawan Mason, KPSP Setia Kawan Biodigester construction quality check procedures Operational & maintenance of the biodigester Mason Training Sustainable development /xvi/ 22-23/10/2013 Central Java: 4 households East Java: 3 households Biodigester users (Project Field Test, PFT) Biodigester operation and maintenance issues Livestock raising Sources of fuel for cooking before and after building the digester Manure management before and after building the digester Biogas and bio-slurry utilization Sustainable development issues User training PFT monitoring issues Template Version 01 (12/08/2013) Rev: 01.4 Page 13

15 /xvii/ 22-23/10/2013 Central Java: 2 households East Java: 12 households Biodigester users (Biogas User Survey, BUS) Biodigester operation and maintenance issues Livestock raising Sources of fuel for cooking before and after building the digester Manure management before and after building the digester Biogas and bio-slurry utilization Sustainable development issues User training BUS monitoring issues /xviii/ 22-23/10/2013 Central Java: 9 households Biodigester users (Typical households 5 ) Biodigester operation and maintenance issues Livestock raising Sources of fuel for cooking before and after building the digester Manure management before and after building the digester Biogas and bio-slurry utilization Sustainable development issues User training /xix/ 22-23/10/2013 Central Java: 1 household East Java: 1 household /xx/ /10/2013 Agung Lenggono Baseline scenario Livestock raising Non-biodigester household Sources of fuel for cooking (Baseline Field Test, BFT) Manure management BFT monitoring procedures Biogas Technical Officer, Yayasan Rumah Energi Kitchen Performance Test (KPT) design KPT procedures Sampling size determination Sample selection criteria KPT training Verification Team along with on-site observation, objective evidence collections, data generation and recording analysis also considered the views obtained in these interviews while arriving at Verification Opinion. The registered PDD was approved by GS on 03/12/ and the verification team further conducted review on the registered PDD. It is concluded that the changes in the registered PDD have been covered by the verification protocol and related assessments had been done in the OSV. Another on-site assessment is determined not necessary to assess the project activity with regards to the changes. The verification team has conducted detailed assessment for the VPA-1 in the indicative monitoring period on the compliance with all related GS requirements (refer to Section 3 of this report for details). It is the opinion that the monitoring implementation of the VPA-1 has substantially demonstrated to be in compliance with the registered documentations and all related GS requirements. 5 They had not participated in either BUS or BFT/PFT. 6 Based on the confirmation from GS to the PP /51/. Template Version 01 (12/08/2013) Rev: 01.4 Page 14

16 2.3 Resolution of outstanding issues The objective of this phase of the verification is to resolve any outstanding issues (issues that require further elaboration, research or expansion) which have to be clarified prior to final DOE s conclusions on the project implementation, monitoring practices and achieved emission reductions. In order to ensure transparency a verification protocol is completed for the project activity. The protocol shows in transparent manner criteria (requirements), means of verification and resulting statements on verification actual project activity against identified criteria. The verification protocol serves the following purposes: It organises in a table form, details and clarifies the requirements, which GS-CDM/JI/VER project is expected to meet; It ensures a transparent verification process where the DOE will document how a particular requirement has been verified and the result of the verification. It ensures that the issues are accurately identified, formulated, discussed and concluded in the validation report. It ensures the determination of achieving credible emission reductions from the project activity. The verification protocol consists of two tables. Table 1 reflects the verification requirements and reference to the materials used to verify the project activity against those requirements, as well as means of verification, reference to Table 2 and preliminary and final opinion of the DOE on every particular requirement. The completed verification protocol for this project is enclosed in Appendix A to this report. Findings during the verification can be interpreted as a non-compliance with CDM/JI/VER criteria and GS rules or a risk to the compliance. Corrective action requests (CARs) are raised, in case: (a) Non-conformities with the monitoring plan or methodology are found in monitoring and reporting and has not been sufficiently documented by the project participants, or if the evidence provided to prove conformity is insufficient; (b) Modifications to the implementation, operation and monitoring of the registered project activity has not been sufficiently documented by the project participants; (c) Mistakes have been made in applying assumptions, data or calculations of emission reductions which will impair the estimate of emission reductions; (d) Issues identified in a FAR during validation/previous verification(s) that are not been resolved by the project participant(s) to be verified during current verification. Requests for clarification (CLs) are raised, if information is insufficient or not clear enough to determine whether the applicable GS-CDM/JI/VER requirements have been met. A forward action request (FAR) is raised during verification to highlight issues related to project implementation/monitoring that require review during the subsequent verification of the project activity. FARs shall not relate to the CDM requirements for issuance. 2.4 Internal quality control The final verification report underwent a technical review by a qualified independent reviewer before requesting issuance of the programme. The technical review was performed by a technical reviewer qualified in accordance with TÜV Rheinland s qualification scheme for GS VER validation and verification that meets the criteria of EB guidelines and GS rules for qualification. 2.5 Verification Team Before the assessment begins, members of the verification team are ensured to cover the technical area(s), sectoral scope(s) and relevant host country experience including local language ability for evaluating the GS verification activity. The qualification of the team is as per the criteria defined by the EB guidelines and GS rules for qualification. Template Version 01 (12/08/2013) Rev: 01.4 Page 15

17 Supervising the work Desk review Site Visit + Interview Report and protocol Writing Technical Expert Input Reporting Support Technical Reviewer Verification Report Table 5. The composition of verification team Full name Verification Team Affiliation Appointed for Sectoral Scopes TÜV (Technical Areas) Rheinland Type of Involvement Mr. Harold Hai China 1.2, 3.1, 6.1, 13.1 X X X Mr. Timothy Chan 1.2, 2.2, 13.1 X X X X Ms. Ginger Jiang (until 21/02/2014) 1.2 X X X Mr. Walter Tang China 1.1, 1.2, 2.1, 2.2, 3.1, 4.3, 4.5, 13.1 X 3. Verification findings The findings of the verification are described in the following sections. The verification criteria (requirements), the means of verification and the results of verification are documented in detail in the verification protocol in Appendix A. 3.1 Programme implementation The implementation of the programme of activity Table 6. Summary of the programme of activity Project Participants: 1. Hivos 2. Hivos Host country: The Republic of Indonesia Title of programme of activities: Indonesia Domestic Biogas Programme of Activities (IDBP) (ID1172) GS registration No: GS1172 VPAs included in this verification: VPA-1 Baseline and monitoring methodology: Technologies and practices to displace decentralized thermal energy consumption, Version 01.0 Project Type: The waste handling and disposal category 7 Project Scale: Small scale Location of the project activity: 8 provinces of Indonesia as of the end day of the 1 st monitoring period Registration Date: 31/05/2013 Programme s crediting period: 01/06/ to 31/05/2039 Total duration of the programme: 28 years Period verified in this verification: 01/06/2011 to 31/05/2013 (including both days) Indonesia Domestic Biogas Programme of Activities (IDBP) (ID1172) (hereafter named the the programme ) is a small-scale Gold Standard Voluntary Emission Reduction programme of activities. The project participants from the host country and the Netherland are also Hivos, which is an international NGO. The details of VPA being covered by this monitoring period are described in Table 7. Table 7. VPA covered by this monitoring period of the programme of activity Number ID (ref. number) VPA title Implementation status in the monitoring period Crediting period 7 As per the definition of in T of the GS Toolkits. 8 A maximum 2 years of crediting period is allowed to be claimed prior to the registraiton date. Template Version 01 (12/08/2013) Rev: 01.4 Page 16

18 VPA-1 GS1174 Indonesia Domestic Biogas Programme of Activities (IDBP) (ID1172), VPA-1 (ID1174) Project started since 24/10/ st crediting period: 01/06/ /05/2018 (7-year renewable) Through document review (e.g. the registered PDD /4/, the monitoring report /8/, and related evidences), on-site inspection and interviews with management representative of IDBP /i/, and Provincial IDBP staff /v/ /vi/ /vii/, the verification team can summarize the implementation of the project in this Section. Implementation status The programme and its first VPA (i.e. VPA-1) have been registered as a GS PoA by Gold Standard Foundation on 31/05/2013 with the GS ID and ID1174 respectively. This report aims at reporting of the verification results for the 1 st monitoring period between 01/06/2011 to 31/05/2013 (hereafter named as the indicated monitoring period ). It is noted that the indicated monitoring period is within the crediting period of the programme, which is allowed to be started at maximum 2 years prior to the PoA registration date. Regarding to the VPA-1, the indicated monitoring period is also within the approved 1 st crediting period (i.e. 01/06/ /05/2013) delineated in the registered VPA-DD. Both the crediting period of the PoA and VPA-1 are in compliance with T of the GS Toolkits. The verification of both the emission reductions and sustainability monitoring for the Gold Standard Voluntary Emission Reductions (VER) is conducted at the same time. Actual operation of the PoA It is confirmed that there is no revision to any part of the registered PoA-DD, VPA-1-DD, PoA Passport and VPA-1 Passport. The actual operations of the programme/ VPA-1 are in line with the programme design described in the respective registered documents. As part of the on-site visit the verification team was able to assess the programme implementation. IDBP is confirmed a national-wide biodigester programme of activities in Indonesia. The objective of the programme is to install biodigester for the target users and hence achieve emission reductions by 1.) reducing the nonrenewable biomass (NRB) and fossil fuels (FF) consumption for cooking and heating purposes by using the recovered biogas; 2.) avoiding methane gas emissions by the controlled manure management system (biodigester). It was in accordance with the programme description contained in the registered PoA-DD/Version 6.0, dated 21/10/2013. The programme has only 1 VPA, i.e. VPA-1. VPA-1 was also confirmed in line with the project description in the registered VPA-DD (VPA-1, Version 7.0, dated 06/11/2013). Summary The verification team confirms that the implementation of the programme including project location and biodigester system installation were in line with that described in the registered PoA-DD and VPA-DD. No change to the programme design has occurred since the registration and that have impact on the claimed VER. Furthermore, the verification team finds no change in the key sustainability indicators that will impair the overall positive impact on sustainable development of the programme. The programme is in compliance with Gold Standard programme eligibility The actual operation of the VPA According to the final monitoring report /8.2/ (hereafter the MR ), VPA-1 has been implemented in 8 provinces of Indonesia. The list of provinces being covered by VPA-1 as stated in the MR is confirmed within the programme boundary of the Indonesia. The start date of VPA-1 is defined as the implementation date of the first biodigester on 28/10/2009. Since then, the installations of biodigester systems continue and hence reach 9,090 biodigester installations as of 31/05/2013. The PP has established IDBP database for the continuous monitoring of the programme development. The verification is able to confirm the total no. of biodigester 9 Template Version 01 (12/08/2013) Rev: 01.4 Page 17

19 installation as 9,090 units as of 31/05/2013 by reviewing the IDBP database /12/. The 1 st monitoring period is 01/06/2011 to 31/05/2013 (i.e. the indicated monitoring period). It is also confirmed by the management representaive of IDBP /i/ that apart from GS VER no other carbon credit scheme was claimed by either the programme nor VPA-1 during this period. An on-site inspection was carried out by the verification team from 21/10/2013 to 24/10/2013 in order to check the physical features of the project activity. The verification team randomly selected 2 out of the 8 provinces with the Biogas Usage Survey (BUS) being conducted in accordance with the monitoring plan for the indicated monitoring period. The provinces are Central Java and East Java. Totally 30 biodigester users and 2 nonbiodigester users were visited and interviewed in order to conduct assessment with respect to the project implementation, the BUS/KPT (both baseline and project scenario) implementation, and sustainable development aspects for the indicated monitoring period. Table 8. The project implementation verified based on on-site inspection Fixed-dome biodigester Item Description in the VPA- Description reported in 1-DD the MR Location The Republic of Indonesia 8 provinces in Indonesia including: Lampung West Java Central Java and Yogya East Java Bali Nusa Tenggara Barat Sumba South Sulawesi Applied Fixed-doom biodigester, biodigester maximum capacity:12m 3 with capacity range: 4-12 technology m 3 No. of biodigester system installed Target enduser Expected to install 7,983 as of the end of May 2013 Households: Individual houses inhabited by dairy farmers or other types of farmers 9,090 units (as of 31/05/2013) Households who raise animals Verification opinion It is confirmed by the Deputy manager of IDBP /ii/ that the project has covered the 8 provinces of Indonesia indicated in the MR. The records in IDBP database /12/ is reviewed to further confirm VPA-1 has been implemented in these 8 provinces which are within the boundary of Indonesia. It is confirmed from the IDBP database /47/ that the installed capacity of the biodigester was ranging from 4m 3 to 12m 3. As per the OSV, all the visited households are fixed-doom type biodigesters. The technolgoy applied in VPA-1 is confirmed consistent with the registered VPA-DD. By checking the IDBP database /12/, 9,090 units of biodigesters were cumulatively installed as of 31/05/2013 for VPA-1. The household agreements /52/ are available for the verification team to conduct cross-checking and hence confirm the figure. It is deemed reliable and traceable. It is confirmed from the deputy programme manager of IDBP /ii/ that VPA-1 only includes domestic households who own animals (i.e. dairy cow, pig, etc.). In addition, based on the observations and interviews with the biodigester users /xvii/ /xviii/ /xix/, all of them are confirmed domestic households who raise dairy cow, pig or other animals. They are mainly dairy farmers, while some of them grow crops/ flowers. Template Version 01 (12/08/2013) Rev: 01.4 Page 18

20 It is in line with the PoA-DD and VPA-DD. Every visited biodigester can be identified from the IDBP database by the given serial no.. The capacity ranging from 6 m 3 to 12 m 3 and the age of the biodigesters includes year 0-1, 1-2, The verification team considers that these visited biodigesters were representative for the verification of physical features and operational status of the biodigesters. Because on one hand it covers the majority of biodigester capacity design, on the other hand they also consist of various age groups. Based on the on-site assessment and interview with biodigester users /xvii/ /xvii/ /xix/, all the visited biodigesters were operated under normal status. The biogas supplies were adequate for the operation of biogas stoves and biogas lamps. Moreover the households either applied bioslurry from the biodigesters as agricultural fertilizer or sell it as fertilizer on the market. The verification team has checked the completion report /14.3/ of the visited households, looking for the mason who built the biodigester. All these masons can be cross-checked with the records in IDBP Database by searching the name or mason code. This allows the IDBP quality manager to trace the construction skills and quality of the masons. During OSV, the interviewed masons /xv/ /xvi/ have confirmed they had received a 5- days mason training course which is provided by IDBP technician. Their mason training certificates /20.1/ /20.2/ are found consistent with the training records in the IDBP database. Based on the above findings, the training system for the mason is considered to be well organized and recorded. Only the certified masons are employed to construct the biodigester system. Moreover, according to Construction manual for masons and supervisors /19/, it has clearly indicated the required technical specification of the biodigester and the QC procedures in details. The quality control procedures are also substantiated by the quality control form. Thus, it is concluded that the quality of each biodigester system can be ensured up to IDBP s quality standard by the above measures. Table 9. Summary of the implementation Project physical features ( technology, project equipment, monitoring and metering equipment) Any Project Design Change been sought and approved by GS Secretariat for the project? Any Changes in the monitoring Plan caused by material and permanent design Changes which was approved by GS Secretariat? Any changes in the sustainable development monitoring plan? Any Revision in Monitoring plan is sought and approved by GS for the project? Does the monitoring report provide line diagram showing all relevant monitoring points? It is consistent with the description in registered VPA-DD. Refer to Table 8 in the above for detailed assessment. Yes No Yes No Yes No Yes No Yes No Table 10. The timeline of the VPA implementation Milestone of VPA-1 Date Verification opinion No change in programme/ project design requested since registration. No change in the monitoring plan requested since the registration. No change to the sustainable development monitoring plan requested since the registration. No revision of monitoring plan was requested before the verification. During the OSV, deviations were found. The CME then requested approval of the deviation from the GS. The GS had accepted and approved the deviations for the 1 st monitoring period. Refer to Section for detailed assessments. The monitoring organization structure is shown in the final MR. The verification team can confirms the same via interviewing the related personnel who take part in the monitoring /i/ /iii/ /iv/ /v/ /xi/ /xxi/. It is in compliance with the registered PoA-DD. 10 The age group identification corresponds to the age at the time of conducting BUS in Dec 2012 Jan Template Version 01 (12/08/2013) Rev: 01.4 Page 19

21 Milestone of VPA-1 Date Verification opinion Starting date of operation: 24/10/2009 (Signing the first household agreement) It is found consistent with between IDBP monitoring database /12/, registered VPA-DD /4.2/ and the first signed household agreement /46/ Inclusion of the VPA 31/05/2013 The registration date is determined as 8-week after the submission of request for registration (i.e. 05/04/2013). It is in compliance with GS Toolkits. Crediting period 01/06/ /05/2017 (retroactive crediting period) 1 st monitoring period 01/06/ /05/2013 (include both days) Since VPA-1 is a retroactive project, the start date of crediting period is allowed to date back at most 2 years prior to the registration date. It is in compliance with T of the GS Toolkits. It is within the 1 st crediting period of VPA-1. Moreover, it is consistent among the final MR /10.2/ and ER calculation spreadsheet /11/. In summary, the monitoring period is reasonable and the actual implementation of the project activity is appropriate to its GS development. Apart from the deviations in monitoring, both the baseline scenario and the project implementation were consistent with the descriptions illustrated in the registered VPA-DD /4.2/ and registered GS VPA Passport /6.2/. 3.2 Compliance of the monitoring plan with the monitoring methodology The DOE verification team is able to confirm that the monitoring plan contained in the registered PoA-DD /4.2/ dated 10/10/2013 is in accordance with the approved methodology applied by the programme, i.e. Technologies and practices to displace decentralized thermal energy consumption (hereafter named as TPDDTEC )/ Version 01.0 /3/. The verification team also checks for the applicability of the applied GS methodology for the 1 st monitoring period. The programme is confirmed in compliance with all the applicability criteria conditions listed in the applied monitoring methodology. Table 11. Assessment on the applicability of the applied methodology (i.e. TPDDTEC) Applicability criteria conditions of TPDDTEC/ Version The project boundary can be clearly identified, and the technologies counted in the project are not included in another voluntary market or CDM project activity (i.e. no double counting takes place). Project proponents must have a survey mechanism in place together with appropriate mitigation measures so as to prevent double-counting in case of another similar activity with some of the target area in common. Observations & Verification opinion The project activity disseminates a total of 9,090 units of biodigester system to households within 8 provinces of Indonesia since the start date of VPA-1 i.e. 24/10/2009 and until the end of the indicated monitoring period (i.e. 31/05/2013). The interviewed management representative /i/ of Hivos confirms that the programme has only applied for GS VER but no other carbon credit scheme. The verification team has checked through the CDM pipeline /52.1/, PoA Pipeline /52.2/ and VCS official website 11 by filtering with the project name and PP s names, it has found no similar PoA/CPA/project activity applying these emission reduction certification schemes. Hence the verification team confirms this GS VER project activity does not involve in double-counting of other carbon scheme at the time of this request for issuance. Criteria fulfilled? Yes No 11 Template Version 01 (12/08/2013) Rev: 01.4 Page 20