CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM-SSC-PoA-DD) Version 01 CONTENTS

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1 CDM Executive Board page 1 CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM-SSC-PoA-DD) Version 01 CONTENTS A. General description of small-scale programme of activities (SSC-PoA) B. Duration of the small-scale programme of activities C. Environmental Analysis D. Stakeholder comments E. Application of a baseline and monitoring methodology to a typical small-scale CDM Programme Activity (SSC-CPA) Annexes Annex 1: Contact information on Coordinating/managing entity and participants of SSC-PoA Annex 2: Information regarding public funding Annex 3: PoA_Annex_3_Baseline Information Annex 4: Monitoring plan Annex 5: PoA_Annex_5_University of Nairobi Report on CZK3 stove performance Annex 6: PoA_Annex_6 Proof of CPA Start Date Annex 7: PoA_Annex_7 Kenya NRB Fraction Final Report 30 March 2010 NOTE: (i) This form is for the submission of a CDM PoA whose CPAs apply a small scale approved methodology. (ii) At the time of requesting registration this form must be accompanied by a CDM-SSC-CPA- DD form that has been specified for the proposed PoA, as well as by one completed CDM-SSC- CPA-DD (using a real case).

2 CDM Executive Board page 2 SECTION A. General description of small-scale programme of activities (PoA) A.1 Title of the small-scale programme of activities (PoA): Efficient Cook Stove Programme: Kenya Version /03/2012 A.2. Description of the small-scale programme of activities (PoA): 1. General operating and implementing framework of PoA The small-scale Programme of Activities (SSC-PoA) will distribute energy efficient cooking stoves to households in the Republic of Kenya. The only source of revenue from the proposed SSC-PoA for the Coordinating/Managing Entity or any CPA Implementer is the sale of certified emission reductions (CERs). Stove recipients will submit to the monitoring requirements as specified by AMS-II.G Version 3, and further described in this PoA Design Document (PoA-DD) and the relevant CDM Programme Activity Design Document (CPA-DD). Details concerning stove performance, distribution, and assembly will be provided at the CPA level. For each CPA under the proposed PoA stoves will have a unique serial number. The GPS coordinates of each stove will be recorded after installation in the project area. Data collected during construction and monitoring of each CPA will be stored in an electronic data management system, or monitoring database, for a minimum of two years past the crediting period. From this data, the emissions reductions of each CPA in the PoA will be determined. This system will be available for review by the Designated Operational Entity (DOE) during the validation and verification of the PoA and each CPA. A thorough stakeholder engagement process will be undertaken for each of the CPAs under the proposed PoA, ensuring that potential stove recipients understand the installation agreement, are trained in the usage of the stove, and able to give adequate feedback on their usage. 2. Policy/measure or stated goal of the PoA The SSC-PoA will distribute efficient cooking stoves to households in Kenya. The use of efficient stoves aims to reduce carbon emissions by allowing families to cook the same amount of food using less nonrenewable biomass. Additionally, the programme will yield sustainability benefits besides reduced carbon emissions, listed under Point Confirmation that the proposed PoA is a voluntary action by the coordinating/managing entity. In Kenya, there is no law or policy that requires the use of fuel-efficient stoves or other means of reduced fuel wood consumption. It follows that the SSC-PoA is a voluntary action. 4. Contribution to sustainable development

3 CDM Executive Board page 3 The proposed SSC-PoA contributes to the sustainable development of the Kenyan economy in a number of ways: i. Environmental The PoA will significantly reduce Kenya s greenhouse gas emissions over its lifetime. The PoA will reduce the use of non-renewable biomass from Kenyan forests, assisting the maintenance of existing forest stock, protecting natural forest ecosystems and wildlife habitats. ii. iii. Social The protection of standing forests will ensure the maintenance of watersheds that regulate water table levels and prevent flash flooding. Less time will be spent collecting wood fuel, thereby reducing the work burden on rural families and presenting alternative opportunities for economic development. The amount of indoor air pollutants from the burning of biomass in the home will be reduced. Less carbon dioxide, carbon monoxide, and particulates will be emitted. Economic The PoA will help develop a section of the Kenyan rural economy; in the manufacturing of the stoves, their installation, maintenance and monitoring. Costs incurred in the purchase of fuel will be reduced through increased thermal efficiency. The long-term contributions to sustainable development in Kenya, listed above, will not exist without carbon finance. A.3. Coordinating/managing entity and participants of SSC-POA: Name of Party Involved ( Host indicates a host Party) Private and/or Public entity(ies) project participants (as applicable) Kenya (Host) co2balance UK No United Kingdom co2balance UK No Kindly indicate if the Party involved wishes to be considered as project participant (yes/no) 1. co2balance UK will act as the CME of the PoA, and Joint Focal Point which communicates with the CDM Executive Board A.4. Technical description of the small-scale programme of activities: A.4.1. Location of the programme of activities: Republic of Kenya A Host Party(ies): Kenya

4 CDM Executive Board page 4 A Physical/ Geographical boundary: The geographical boundary for the proposed PoA is the Republic of Kenya. All CPAs included in the PoA will be implemented in Kenya: Figure 1: Kenya - the geographical boundary of the proposed PoA A.4.2. Description of a typical small-scale CDM programme activity (CPA): The amount of stoves in each CPA is limited to an annual thermal energy savings of 180 GWh. The maximum number of stoves limitation is dependent on the project baseline and will vary by CPA. The baseline as described in AMS-II.G Version 3 will be determined separately for each CPA. The method for determining the baseline is described in section E.4 of the PoA-DD. Each CPA will involve the installation of efficient cooking stoves. Each CPA will comprise the manufacture, installation, and monitoring of the stoves over the crediting period. A Technology or measures to be employed by the SSC-CPA: The project will provide energy efficient cooking stoves to rural households. The stove design may vary by CPA as different locations, climates, and traditions demand. Unless otherwise specified, the stove technology will be based on a design developed by the CME. The user-friendly design delivers high thermal efficiency and is built from locally sourced materials. This simple technology performs at 34 per cent thermal efficiency, thereby reducing the amount of biomass required in day-to-day cooking by 70 per cent as compared to the traditional three-stone, open-fire method of cooking or equivalent conventional system. A testing certificate is attached in Annex 5.

5 CDM Executive Board page 5 Figure 2: co2balance Efficient Stove Design The stove consists of a fired clay liner, or combustion chamber, which is encased by specially designed clay components that are cemented together. For CPAs using an alternative stove design, a stove testing report similar to that shown in Annex 5 will be provided for the alternative design. All stove designs eligible under the CPAs must have a thermal efficiency greater than 20 per cent. A Eligibility criteria for inclusion of a SSC-CPA in the PoA: The following criteria must be met by each CPA to ensure its eligibility under the PoA: 1. The geographical boundary of each CPA will be within the geographic boundaries of the Republic of Uganda, consistent with that set in the PoA. 2. Each CPA will be uniquely defined by a range of GPS coordinates and current administrative maps to define the project boundary. 3. Each CPA will ensure double counting of emission reductions is avoided, through the GPS tracking and identification of each stove with a unique identification number. 4. Each CPA will involve the distribution and installation of efficient cook stoves to households cooking with firewood on a traditional stove for domestic purposes. The specifications of the technology will be included with each CPA-DD. 5. Documentary evidence will be provided with each CPA-DD to demonstrate the start date of the CPA, and ensure it is in compliance with the glossary of CDM terms. 6. Each CPA will be in compliance with the latest version of AMS-II.G: Energy Efficiency Measures in Thermal Applications of Non-renewable Biomass. 7. Each CPA will demonstrate additionality by establishing that in the absence of CDM, the implemented CPA would not occur. This will be done using Barrier Analysis to prove additionality, derived from the relevant requirements of attachment A of Appendix B. It will be carried out as per the most recent version of the Tool for the Demonstration and Assessment of Additionality. 8. Each CPA will conduct a stakeholder consultation and provide documentation. 9. Each CPA will be covered by the Environmental Impact Analysis requirements at PoA level. 10. There will be no public funding or ODA for any of the proposed CPA s. This will be affirmed by attaching the appropriate evidence.

6 CDM Executive Board page Each CPA will follow the sampling requirements specified in the latest version of General Guidelines for Sampling and Surveys for Small-Scale CDM Project Activities. 12. Each CPA will adhere to the small-scale threshold criteria and remain within that threshold throughout the crediting period. 13. Each CPA will show that it is not registered as another project activity. 14. Each CPA will not be a de-bundled component of another CDM programme or project activity. The requirements for a debundling check as outlined in Guidelines on Assessment of Debundling for SSC Project Activities will be met. A.4.3. Description of how the anthropogenic emissions of GHG by sources are reduced by a SSC-CPA below those that would have occurred in the absence of the registered PoA (assessment and demonstration of additionality): (i) The proposed PoA is a voluntary coordinated action; At the time of registration of the SSC-PoA, there is no p olicy or regulation that requires the use of efficient cooking stoves in households using non-renewable biomass as fuel in Kenya. Furthermore, there is no rule or regulation mandating a reduction of fuel wood usage in Kenya. It follows that the SSC-PoA is a voluntary coordinated action. (ii) If the PoA is implementing a voluntary coordinated action, it would not be implemented in the absence of the PoA; The additionality is demonstrated using the UNFCCC Methodological Tool: Tool for the demonstration and assessment of additionality Version The Tool for the demonstration and assessment of additionality is applicable to the demonstration of the additionality of a Programme of Activities and to small-scale CDM activities using methodology AMS-II.G Version 03. Specifically under paragraph 6 of the methodological tool, regarding Scope and Applicability, it reads: The document provides a general framework for demonstrating and assessing additionality and is applicable to a wide-range of project types. Step 1: Identification of alternatives to the project activity consistent with current laws and regulations. Sub-step 1a: Define alternatives to the project activity: (i) activity: The proposed project activity undertaken without being registered as a CDM project To distribute domestic fuel-efficient cooking stoves cost-free to rural households in Kenya, on the scale the proposed PoA is suggesting, without the benefit of carbon finance, would require a large donor, or government-led initiative. There is no history of this type of activity in Kenya to date. There have been micro-scale projects, implementing domestic and institutional cooking stoves, such as the UNDP s RETAP project 1. However these have been centred on providing micro-credit to stove users. The business case for this activity only works in the institutional sector, where economies of scale are achieved as savings are high and large quantities of wood fuel is purchased. 1 RETAP!! (2010, August). Renewable Energy Technology Assistance Porgramme (RETAP). Retrieved from

7 CDM Executive Board page 7 All projects of this type require donor-funding, and there is no history of a fuel-efficient, wood-fuel cooking stoves project reaching the same scale, with the same longevity in Kenya as the SSC-PoA proposed by the CME. This is evidenced by the poor penetration rate of fuel-efficient, wood-fuel cooking stoves in rural Kenya and the continuing high deforestation rates in the country. There are no plans for the government to implement a fuel-efficient cooking stoves programme in Kenya, the donor sector does not have the resources to do so and the private sector is unlikely to shoulder these costs. It is only through the application of carbon finance that a programme of this size may be implemented. (ii) Other realistic and credible alternative scenario(s) to the proposed CDM project activity scenario that deliver outputs services (e.g., cement) or services (e.g. electricity, heat) with comparable quality, properties and application areas, taking into account, where relevant, examples of scenarios identified in the underlying methodology: An alternative scenario would be for the private sector to implement a commercial project to sell fuel-efficient cooking stoves to the rural Kenyan poor for profit. This scenario is extremely unlikely. Kenya has a population with 50 per cent living below the poverty line, combined with a 40 per cent unemployment rate 2. More than half of the country s 31.3 million people are poor, and 7.5 million of the poor live in extreme poverty. About 80 per cent of the population, including three out of four poor people, live in rural zones 3. Research has shown the average income in Kenya to range from KSH 4,000 to KSH 5,000 per month 4.The upper limit is estimated from a gross national income per capita of USD 770 per annum 5. Therefore, the commercial viability of selling stoves to the rural poor is minimal. (iii) If applicable, continuation of the current situation (no project activity or other alternatives undertaken). The continuation of the current situation in Kenya is the continued use of open, three-stone fires for cooking. As discussed above, the rural poor are excluded from the market for purchasing stoves, owing to the high levels of poverty. The cost of fuel-efficient stoves is too great for families to manage within the household budget. There is also no economic incentive to install a fuel-efficient stove, as wood is collected mostly for free. The status quo, involving no additional investment, makes it the most likely alternative scenario. Sub-step 1b: Consistency with mandatory laws and regulatory 2 CIA World Factbook Kenya: Economy (2010, August). United States Central Intelligence Agency. Retrieved from 3 Rural Poverty in Kenya (2010, August). Rural Poverty Portal. Retrieved from 4 Proposal for SOKO: An Ethical Factory Development in Ukunda, Kenya (2010, August). SOKO-Kenya. Retrieved from 5 Kenya Statistics: Economic Indicators (2010, August). United Nations Children s Fund. Retrieved from

8 CDM Executive Board page 8 The alternatives identified in Sub-step 1a above are in compliance with the mandatory laws and regulations in Kenya. It follows that the proposed SSC-PoA is not the only alternative that complies with national mandatory laws and regulations. The SSC-PoA is not, however, implementing a specific Kenyan mandatory regulation or law related to the installation of fuelefficient cooking stoves. There is no general law against the extraction of fuel wood from forests in Kenya. These only exist for protected areas, where some problems with illegal harvest of wood for a variety of purposes exist due to poor enforcement. 6 Alternative scenarios 1 & 2 would likely reduce pressures on forests, whereas scenario 3 represents no change. Step 2: Investment Analysis Investment Analysis has been forgone. Step 3: Barrier Analysis will be used to demonstrate the additionality of the proposed SSC-PoA. Step 3: Barrier Analysis Sub-step 3a: Identify barriers that would prevent the implementation of the proposed project activity: (a) Investment barriers a.1 Similar activities have only been implemented with grants or other non-commercial finance terms. Efficient cook stove projects in Kenya to date have all received grants or other noncommercial finance terms. The following lists the relevant projects and their source of financing. - The Rural Stoves West Kenya (RSWK) project worked with the Ministry of Agriculture through the Home Economics Officers to reduce pressure on nonrenewable biomass - rate of deforestation was reduced which was of interest to the Ministry of Agriculture. RSWK received funding the European Union, the Ashden Trust, and the Department International Development - Civil Society Challenge Fund. 7 - KENGO is promoting the Kuni Mbili, an efficient fuelwood stove, which is subsidised and often sold at or less than cost. 8 a.2 No private capital is available from domestic or international capital markets. 6 Mathu, W. (July 5th, 2007). Forest Law Enforcement and Governance in Kenya. Kenya Forest Service. Retrieved from 7 Development and Commercialisation of Improved Stoves in Rural West Kenya - The Upesi Project (2010, August). Household Energy Network. Retrieved from 8 The Kuni Mbili Still Subsidized (2010, August). Household Energy Network. Retrieved from

9 CDM Executive Board page 9 The real or perceived risk associated with investment in Kenya is high. There are examples of micro-scale implementations of fuel-efficient cooking stove projects in Kenya. These projects have all received either grant/donor funding, or have attracted carbon finance through the voluntary carbon market. The investment barrier for these projects is the same as for the proposed PoA. Multiple studies, reports, and surveys show that the political and economic environment is not ideal for foreign investment. Kenya currently has a credit rating of B, which is five levels below investment grade. 9 The credit rating was downgraded after the post-election violence in 2007/2008. The poor credit rating embodies aspects of political instability and wide-spread corruption. In 2009, The World Bank Institute published governance ratings for Kenya. The report covers such aspects as political stability, corruption, rule of law, and government effectiveness from 1996 to The rating is displayed as a percentile and interpreted as the percentage of countries that rank below the one in question. Concerning Political Stability and Absence of Violence in Kenya in 2008, the report stated, with 90 per cent confidence, that 80 per cent of countries are more stable and less violent then Kenya. Additionally, 70 per cent of countries were shown to perform better than Kenya in Control of Corruption in 2008 with 90 per cent confidence. 10 Finally, a study by the World Bank found that 53% of small business in Kenya identified access to finance as a major business constraint, ranking this as the second largest obstacle, 83% of small businesses rely on internal funding/returns for investment. 11 The up-front costs required to develop market efficient cook stoves are significant, and until a reduction in costs could be proven, there would be no market. Given this financial case, for such a business it is unlikely that a source of funding could be found. In summary, there is no or insufficient private capital due to the actual or perceived risk of conducting business in the host country, Kenya. (b) Technological barriers Inter alia b.1 Lack of skilled or trained labor There is a lack of an adequately trained local workforce capable of constructing and maintaining stoves at present. The efficient stove technology to be utilised is not new, however its use in the area is not widespread, with households typically limited 9 Kenya s Credit Rating Outlook Raised to Stable by S&P 2008, March 10th). Bloomberg. Retrieved from 10 Governance Matters 2009: Country Data Report for Kenya, (2009, June). World Bank Institute. Retrieved from info.worldbank.org/governance/wgi/pdf/c116.pdf. 11 Enterprise Surveys Kenya (2010, August). The World Bank Group. Retrieved from

10 CDM Executive Board page 10 in knowledge and skill to inefficient three stone fires. 12 There is no clear development of a market that would drive such capacity to be built due to the financial barriers stated above. (c) Barriers due to prevailing practice inter alia c.1 Lack of information Habitual use of traditional stoves imposes a very strong influence on the baseline scenario, resulting in continuation of use of traditional three stone fires. There have been some efforts to introduce improved cook-stoves in Kenya in urban areas, mainly limited to urban dwelling charcoal users. Households in rural Kenya do not have access to the market to obtain information about the existence and effectiveness of fuel-efficient cooking stoves. The proposed SSC-PoA will see the widespread education of households to the benefits of using the stoves: wood fuel savings, reduction in indoor smoke pollution, reduced wood collection time etc. c.2 Systemic market failure (d) Financial barriers A further barrier is the lack of any other programme to disseminate fuel-efficient cooking stoves in Kenya on the scale proposed here and therefore the proposed SSC-PoA may be regarded as a first of its kind. d.1 Lack of Household Income As mentioned above, 50 per cent of Kenya s rural population live below the poverty line. 13 The average income in Kenya is KSH 4,000 to KSH 5,000 per month 14,15 and for the rural poor 83 per cent of the household budget is spent on food 16. A Ministry of Energy study found average per capita firewood to total 741 kilograms per year. Assuming a conservative household size of three people average household consumption is 2,223 kilograms per year. The same study found the cost of firewood to stand between KSH 1.3 and 10 per kilogram. The KSH 1.3 per kilogram is the cost where the fuel is sourced while the KSH 10 per kilogram is the cost at which it is commonly sold to consumers. Some households living near to 12 Rocket Mud Stoves in Kenya (2010, August). Household Energy Network. Retrieved from 13 CIA World Factbook Kenya: Economy (2010, August). United States Central Intelligence Agency. Retrieved from 14 Proposal for SOKO: An Ethical Factory Development in Ukunda, Kenya (2010, August). SOKO-Kenya. Retrieved from 15 Kenya Statistics: Economic Indicators (2010, August). United Nations Children s Fund. Retrieved from 16 Kenya: Integrated assessment of the Energy Policy (2006). United Nations Environmental Programme. Retrieved from

11 CDM Executive Board page 11 forested areas are able to purchase a monthly permit to remove firewood at a cost of KSH 39 per month 17 although it was found through the kitchen surveys that the majority of rural residents collect wood around their house and thus do not pay for wood at all. Calculations have been made to assess the ability of households in Kenya to purchase a efficient cooking stove estimated to cost KSH 2,192, excluding transport and onsite installation. The cost of the stove is shown in a quote from a manufacturer in Annex 5. Inputs for the calculation are tabulated below. Table 1. Cost of Fuel Wood and Average Income Average income (KSh/month) 5,000 Average income (KSh/year) 60,000 Proportion of income spent on food (%) 83% Fuel price to consumer (KSH per kg) 10 Fuel price at source (KSH per kg) 1.3 Permit cost (KSh/month) 39 Permit cost (KSh/year) 468 Cost co2balance stove (KSH) 2,192 Three scenarios were projected for the different fuel costs to calculate the average household income remaining after meeting the basic needs of fuel and food. The cost of an efficient stove as a proportion of this remaining income was then calculated and is shown in the table below. Table 2. Cost of stove as percent of annual Household income after purchasing food and fuel Fuel use (kg/hh/year) 2,223 Fuel at consumer price - Fuel at source price 30 % Fuel with Permit 22.5 % The Fuel at consumer price returned a negative percentage because the cost of food and fuel, alone, exceeded annual income. The remaining results show that even in the most conservative scenarios, households wishing to purchase a stove would have to save 30 per cent of their remaining income for a whole year if they were paying for fuel wood at the source price. Households with a permit, the least expensive wood collection method, would need to save 22.5 per cent. These estimates do not take into account any of the other costs of living such as clothing and schooling of children. It is likely that the majority of households would not be able to independently purchase an efficient stove. d.2 Lack of financial incentive The project baseline determined through surveys, described further in Annex 3, shows that a large portion of rural households collects fire wood in place of paying 17 Study on Kenya s Energy Demand, Supply and Policy Strategy for Households, Small Scale Industries and Service Establishments (2002). Republic of Kenya Ministry of Energy. Kenya.

12 CDM Executive Board page 12 for it. The percentage of households collecting fuel wood varies by region and is shown in Table 3, below. Table 3. Percentage of Households Collecting Fuel Wood by Region Cluster Households Collecting Wood 22% 66% 44% 34% Rural households that collect local wood to use as cooking fuel have no financial incentive to invest in a cooking stove even if they could set aside enough household income to afford one. For these households the costs of cooking with an inefficient stove are externalized so there is no motivation to purchase an efficient stove if the market made one available. In summary, the most relevant barrier to the proposed project activity is the financial barrier. The financial barrier to the project activity covers the lack of income available to households to invest in the efficient technology to be provided by the programme. In addition to the lack of capital, surveys show that households lack a financial incentive to invest a significant portion of household income in an efficient stove as the fuel to be saved, fuel wood, is not a monetary expense for many households. It follows that the financial barrier is the most significant barrier. Sub-step 3b: Show that the identified barriers would not prevent the implementation of at least one of the alternatives (except the proposed project activity) The barriers listed above apply differently to the described project scenarios. The alternative scenario 3 is not subjected to any barriers that limit the implementation of the proposed PoA and alternative scenarios 1 and 2. Alternative 1, a large-scale donor or government project is affected by prevailing practices and investment barriers. Alternative 2 is subject to financial barriers, among other things. In the absence of the proposed SSC-PoA, the continuation of the current scenario will occur at the expense of the global and local environment, as well as the health of Kenya s rural poor. Step4: Common practice analysis Sub-step 4a: Analyze other activities similar to the proposed project activity: The Rural Stoves West Kenya (RSWK) project, which built the mandeleo stoves and upesi stoves 18, was a project working with the Ministry of Agriculture through the Home Economics Officers. The interest being that through the reduced pressure on non-renewable biomass the rate of deforestation was reduced which was of interest to the Ministry of Agriculture. When funding from the Ministry of Agriculture dropped off, the level of production decreased as the subsidies, in the form of free transport for the stoves and controlled prices were removed and the poorer purchasers were unable to afford higher prices. Similar observations have been made regarding the Kuni Mbili, promoted by KENGO, the wood fuel version of the KCJ which is subsidised and often sold at cost or less than cost. This is currently considered acceptable as the stove is still in demonstration, but when subsidies are removed the success of 18 Stoves for rural livelihoods: Case Study (2010, August). Technology for Sustainable Livelihoods. Retrieved from practicalaction.org/?id=t4sl_casestudy_stoves.

13 CDM Executive Board page 13 the Kuni Mbili commercialisation is in question. There are only 20,000 of these cook stoves operating in Kenya at present. 19 Both the RSWK project and the activities promoted by KENGO received public funding and are, therefore, not similar to the proposed SSC-PoA as the access to finance is unquestionably different. The Kenyan Ceramic Jiko, was first pioneered two decades ago and has broken into the urban market, however the Kenyan Ceramic Jiko uses charcoal as a fuel. Only urban inhabitants can afford charcoal fuel and therefore the Jiko is not used in rural households. The proposed SSC-PoA is distributing stoves to households cooking with firewood. As a result, the Kenyan Ceramic Jiko is not a similar activity as it targets households excluded by the proposed SSC-PoA and utilizes a fundamentally different technology that relies on a different fuel type. Sub-step 4b: Discuss any similar Options that are occurring: As discussed in Sub-step 4a there are no similar activities observed in Kenya. The proposed SSC-PoA due to its scale and lack of government or donor funding is a first-of-its-kind. It follows that the proposed SSC-PoA is additional. A.4.4. (PoA): Operational, management and monitoring plan for the programme of activities A Operational and management plan: The CME will have overall operational and management responsibility for the implementation and monitoring of the proposed PoA. The CME will provide formal notification to the CPA Implementer that the proposed CPA activity is part of the PoA. The CPA Implementer will submit the following information to the CME which will be stored in an electronic information management system operated by the CME. The data to be collected is the following: i. Data from Construction a. Upon construction of each stove in the SSC-CPA, the collection of monitoring data will include: i. A unique serial number for each stove ii. A GPS tag iii. The name of a representative of each household iv. Mobile number of household representative (where possible) v. ID number of household representative (where possible) vi. The address of each household (where possible) vii. Date and time of installation viii. A signed contract confirming the exchange of the stove in return for rights to the CERs 19 The Kuni Mbili Still Subsidized (2010, August). Household Energy Network. Retrieved from

14 CDM Executive Board page 14 b. This data will be collected in a hard copy format from passed to the CME for input into the PoA electronic database ii. Data from Monitoring and Maintenance a. The on-going monitoring of the performance of the stoves in each SSC-CPA will be the responsibility of CME. b. A sampled group of stoves, as identified in the below monitoring plan, will be assessed every year by the CPA Implementer for their emissions reduction performance. The data from the monitoring is delivered to the CME and made available to the DOE during verification. Furthermore, the following items will be addressed by the CME in the implementation of each CPA under the PoA: i. A record keeping system for each CPA under the PoA: Data will be collected for each SSC-CPA according to the monitoring plan described in section A Initial data in the construction phase will be collected hard copy by the CME for each CPA. The data will then be uploaded into the PoA electronic database. This will ensure that each stove and its owner is identified and logged for monitoring and verification purposes. Annual monitoring reports and CER calculations will stem from this data. All records will therefore be kept, in electronic and hard copy, centrally by the CME. ii. A system/procedure to avoid double-counting e.g. to avoid the case of including a new CPA that has been already registered either as a CDM project activity or as a CPA of another PoA: Double-counting of emissions reductions will be avoided by the specific tagging and logging of stoves under each CPA. The unique references of stoves under each CPA will prevent double counting: a. GPS references: each stove will have a unique GPS-referenced location. During the verification process the DOE will be able to check the existence stoves related to this GPS tag. b. Unique reference numbers: each stove will also have a unique reference number that is imprinted on the side of the stove. This will further prevent doublecounting and the DOE will be able to check this during the verification process. c. Name of household representative, ID number, address, or mobile number: a final check of double-counting may be made against the, afore mentioned, personal information of each user ascribed to each stove. This may be checked during the verification process. iii. The SSC-CPA included in the PoA is not a de-bundled component of another CDM programme activity (CPA) or CDM project activity: Each SSC-CPA under the proposed PoA is exempt from a de-bundling check due to each independent subsystem/measure being less 1 per cent of the small-scale methodology AMS II.G. The methodology threshold for AMS.II.G/Version 03 is 180 GWh of thermal energy savings per annum, meaning that each stove in a typical CPA is responsible for less than 1 per cent of the total potential output.

15 CDM Executive Board page 15 iv. The provisions to ensure that those operating the CPA are aware of and have agreed that their activity is being subscribed to the PoA: According to the Guidance for determining the occurrence of de-bundling under a PoA : 1. For the purposes of registration of a Programme of Activities (PoA) 20 a proposed small-scale CPA of a PoA shall be deemed to be a de-bundled component of a large scale activity if there is already an activity 21, which: (a) Has the same activity implementer as the proposed small scale CPA or has a coordinating or CME, which also manages a large scale PoA of the same sectoral scope, and; Neither the CME nor CPA Implementer are implementing any activities within the same project boundary as the CPA. The CME of the Efficient Cook Stoves Programme: Kenya and the CPA Implementer, are not managing any other Large Scale POA in Kenya. The CPA Implementer is the project proponent for several Gold Standard project activities currently under validation but not within the CPA area. (b) The boundary is within 1 km of the boundary of the proposed small-scale CPA, at the closest point. There is no CDM activity within 1 km of the proposed SSC-CPA boundary. For additional clarity and proof that the project does not represent a de-bundled element of a larger project the following calculations are provided: Biomass saved by each stove 2.81 tonnes/year Energy saved by each stove GWh/year Therefore % (threshold of CPA) is % which is smaller than 1% It follows that the project activity, CPA 1: Eldoret East and Keiyo Districts (Efficient Cook Stove Programme: Kenya), is not a de-bundled component of a large-scale activity. All other CPAs will undergo the same de-bundling check. The CME of the PoA is responsible for operating each of the SSC-CPAs. Therefore, if other entities are operating the CPAs, they will be legally contracted to the CME. Component manufacturers and construction contractors will have contracts specifying this. There will also exist a contract (in English and Swahili) between each household and the CME that confirms the user s involvement in the PoA. A Monitoring plan: 20 Only those POAs need to be considered in determining de-bundling that are: (i) in the same geographical area; and (ii) use the same methodology; as the POA to which proposed CPA is being added 21 Which may be a (i) registered small-scale CPA of a PoA, (ii) an application to register another small-scale CPA of a PoA or (iii) another registered CDM project activity

16 CDM Executive Board page 16 The CME will operate a monitoring plan during each verification period. As per AMS-II.G Version 03, monitoring will consist of checking the efficiency,, of a representative sample of efficient stoves at least once every two years. The parameter new, i new, i will be determined as per the specifications of the Water Boiling Test 22 recommended by the Partnership for Clean Indoor Air which is endorsed by AMS-II.G Version 03. As per paragraph 16 of AMS-II.G Version 03, monitoring will also check a representative sample of appliances, parameter N y, that are part of the project activity to ensure they are still in operation or have been replaced. As per paragraph 20 of AMS-II.G Version 03 under option b) monitoring shall ensure that continued woodfuel use with the baseline technology will be excluded from B old. Woodfuel use on the baseline technology has been termed B y, baseline_tech and will be assessed through a representative sample of Kitchen Performance Tests performed as per the Partnership for Clean Indoor Air. 23 B old will be adjusted as per the equations provided in Section E.6.2 of the PoA-DD. As per paragraph 22 of AMS-II.G Version 03, all representative sampling performed during monitoring will satisfy the requirements of the methodology to be a statistically valid sample. For biennial monitoring, parameters determined through representative sampling will satisfy the 95 per cent confidence interval and 5 per cent margin of error requirement. For annual sampling the requirements are 90 per cent confidence interval and a less than a 10 per cent margin of error. In cases where the 95 or 90 per cent confidence interval and the 5 or 10 per cent margin of error are not achieved, the lower bound of the 95 or 90 per cent confidence interval will be chosen if the representative sampling is not repeated. Parameters determined through a representative sample will perform sampling as specified by the General Guidelines for Sampling and Surveys for Small-Scale CDM Project Activities, EB 50 Annex 30. The sampling plan for for N y, and B y, baseline_tech will be performed for each CPA and is the following: new, i Sampling Objective: to determine the average number of appliances in use, average efficiency of the appliance, and average wood use on the baseline technology during the verification period. The parameters will be assessed using a 90/10 confidence/precision if assessed annually and a 95/5 confidence precision if assessed biennially. Field Measurement Objectives and Data to be collected: The objective of the field measurement is to: a) Visually assess if the appliance is present and operational. The data collected is a photo of the appliance with unique stove ID clearly visible. b) Perform a Water Boiling Test on the appliance to test thermal efficiency. The data collected is the thermal efficiency of the stove. 22 Water Boiling Test, Version 3, Partnership for Clean Indoor Air Kitchen Performance Test Version 3, Partnership for Clean Indoor Air,

17 CDM Executive Board page 17 c) Perform measurements of wood used exclusively on the baseline technology, if existing. The wood measurements will be in the form of a KPT as directed by the PCIA. The data collected is the daily mass of wood used on the baseline technology for at least 3 consecutive days. Target Population and Sampling Frame: The target population is the complete list of appliances distributed and recorded in the electronic database during project construction. The sample of appliances checked will be randomly selected from the complete list of distributed appliances. Sample Method: The sample method will be a simple random sample. Desired Precision/Expected Variance and Sample Size: The desired precision for all parameters is 90/10 if monitoring annually and 95/5 if monitored biennially. The parameter with the largest variance will determine the minimum sample size. As per the KPT Version 3.0 published by the PCIA, the expected variance is 40% for samples of household wood consumption and 20% for a WBT. For large populations the minimum sample size (n min ) can be approximated as: 1. Where n min The minimum sample size required t The t-value corresponding to p (t 90 =1.645, t 95 =1.96) p l t The confidence internal (0.05 or 0.1) S The variance of the sample (est. 40%) y n min t 2 p S 2 t l 2 y Given the estimated 40% variance, n min equals 246 for 95/5 precision and 43 for 90/10 precision. During sampling, Equation 1 will be used to calculate the confidence and precision based on actual variance. Procedures for Administrating Data Collection and Minimizing Non-Sampling Errors: The parameter N y will be assessed through household visits of the randomly selected household comprising the sample. The households selected will be visited by staff of the CPA Implementer. During each visit, the existence and functionality of the appliance is confirmed through a visual assessment and photograph of the appliance with the unique ID clearly visible. This visit occurs prior to sampling of the other parameters: B ybaseline_tech and. During the household visit, a household representative is asked if he/she is willing to participate in the sampling of additional parameters. In the instance that the household is in agreement the additional parameters are measured. Otherwise, a new household is randomly selected for sampling. new, i

18 CDM Executive Board page 18 The parameter new, i will be assessed through performing a WBT on a randomly selected sample of appliances. The WBT test will follow the guidelines of the Water Boiling Test Version 3 developed by PCIA. All measurement methods, equipment, and equipment calibration methods will adhere to this protocol. The CPA Implementer will ensure all WBTs performed during sampling are conducted by a well-trained staff, with prior experience conducting WBTs and recording the results. The CME will verify that all the staff of the CPA Implementer are sufficiently trained. The WBTs will be performed in the field and the results recorded. The data will then be uploaded to an electronic information management system operated by the CME. The hard copy test results and electronic information management system will be made available to the DOE during each verification period. The parameter B ybaseline_tech will be assessed through performing a KPT on a randomly selected sample of households participating in the CPA. The KPT will follow the guidelines of the Kitchen Performance Test Version 3 developed by the PCIA. All measurement methods, equipment, and equipment calibration methods will adhere to this protocol. The CPA Implementer will ensure all KPTs performed during sampling are conducted by a well-trained staff, with prior experience conducting KPTs and recording the results. The CME will verify that all the staff of the CPA Implementer are sufficiently trained. The KPTs will be performed in the field and the results recorded. The data will then be uploaded to an electronic information management system operated by the CME. A hard copy of the data and the electronic information management system will be made available to the DOE during each verification period. If an appliance selected for random sampling is inaccessible for any reason, i.e. the owner refuses to participate in the monitoring plan or the appliance cannot be located, a different appliance is randomly selected and replaces the inaccessible one in the sample. The exclusion of any outliers in the sample will be clearly documented along with the rationale for exclusion. An example of the rationale for exclusion is if a specific value is +/- 200% of the sample average, while the average variance is around 40% of the average. Implementation: Staff of the CPA Implementer conducts the sampling. The CME will determine the sample size and randomly select the households to be sampled from the electronic information management system. The CME will inform the CPA Implementer which appliances are part of the sample. The CPA Implementer will perform any required staff training as recommended by CME. The remuneration of the personnel conducting the sampling will in no way be related to the CERs awarded to the project as a result of the monitoring. In addition to the parameters above, the non-renewable biomass factor, f NRB,y, will be assessed for each verification period as per the guidelines of paragraphs 8, 9, 10 of AMS-II.G Version 03. A.4.5. Public funding of the programme of activities (PoA): There will be no public funding involved in the proposed PoA.

19 CDM Executive Board page 19 SECTION B. Duration of the programme of activities (PoA) B.1. Starting date of the programme of activities (PoA): As per EB 59 Annex 12, the effective date of registration for the PoA shall be the date the DOE submits a complete request for registration. The start of the crediting period for any CPA under the proposed PoA shall be the date of its inclusion to the PoA. As per EB 55 Annex 38, the starting date of any CPA under the PoA cannot be prior to the commencement of validation, i.e. the date on which the PoA-DD is first published for global stakeholder consultation. The proposed PoA was uploaded on 25/12/2010. The 1 st CPA under the proposed CPA began construction on the 30/01/2011. Documentation supporting the CPA 1 start date is shown in Annex 6. B.2. Length of the programme of activities (PoA): 28 years SECTION C. Environmental Analysis >> C.1. Please indicate the level at which environmental analysis as per requirements of the CDM modalities and procedures is undertaken. Justify the choice of level at which the environmental analysis is undertaken: 1. Environmental Analysis is done at PoA level 2. Environmental Analysis is done at SSC-CPA level Each CPA will distribute efficient cooking stoves to rural households using conventional, three-stone stoves. Each SSC-CPA under the programme will meet the environmental requirements of the Environment Management Coordination Act (EMCA) of To this effect a project report will be prepared for each SSC-CPA for review and approval by NEMA. In summary, environmental analysis is done at the SSC-CPA level. C.2. Documentation on the analysis of the environmental impacts, including transboundary impacts: The environmental analysis will be done at the CPA level. The will satisfy the EMCA of 1999 and all the latest regulations and guidelines stipulated by NEMA. Due to the length of the programme, a copy of the annual monitoring report, shown in Annex 4 of the SSC-PoA-DD, will be sent to NEMA to ensure that the project is still in compliance with their rules and regulations. C.3. Please state whether in accordance with the host Party laws/regulations, an environmental impact assessment is required for a typical CPA, included in the programme of activities (PoA),: Kenya s National Environment Management Authority has requested that an environmental impact assessment be performed for a typical CPA.

20 CDM Executive Board page 20 SECTION D. Stakeholders comments D.1. Please indicate the level at which local stakeholder comments are invited. Justify the choice: 1. Local stakeholder consultation is done at PoA level 2. Local stakeholder consultation is done at SSC-CPA level Note: If local stakeholder comments are invited at the PoA level, include information on how comments by local stakeholders were invited, a summary of the comments received and how due account was taken of any comments received, as applicable. D.2. Brief description how comments by local stakeholders have been invited and compiled: Local stakeholders will be invited to participate in a consultation for the implementation of each CPA. This will comprise of a meeting within the local community of the CPA s designated geographical boundary. The consultation will invite local community leaders and representatives, NGOs etc. 1. Invitations a. Public Invitation: a newspaper notice, placed in a local newspaper before the stakeholder meeting. b. Personal Invitation: an individual invitation made to a sample of stove beneficiaries, often delivered by hand depending on the situation. Individuals are identified through working with community leaders or representatives. A Tracking List of invitations will be established for each stakeholder meeting to ensure that invitations are monitored and logged for responses. 2. Meeting Preparation The following must be in place prior to the actual meeting: a. Non-technical summary: a simple description of the project that stakeholders will understand. b. Minute taker: an individual responsible for taking detailed notes of the meeting findings. c. Participation forms: participants must sign this form to confirm their attendance. d. Evaluation forms: to be completed by all stakeholders. A simple evaluation form asks each stakeholder to write down their feelings and concerns about the meeting and the proposed CPA. e. Agenda for the meeting. f. Translator, if required. 3. Meeting conduct The meeting will largely follow the agenda specified above in Point 2.e., according to a common approach: a. Opening: introductions, goal of meeting, participation form b. Explanation of PoA: understanding CPA process, who is involved, project phases and timelines