GOLD STANDARD VERIFICATION REPORT

Transcription

1 GOLD STANDARD VERIFICATION REPORT HOUSEHOLD BIOGAS PLANTS INSTALLED IN RURAL AREAS OF MAHARASHTRA IN INDIA GOLD STANDARD PROJECT ID: GS2519 Monitoring Period: 9 May 2012 to 8 May 2014 REPORT NO REVISION NO. 04 DET NORSKE VERITAS

2 GOLD STANDARD VERIFICATION REPORT Date of first issue: Project No.: 8 July 2014 PRJC CCS-IND Approved by Michael Lehmann Client: VNV Advisory LLP Organisational unit: Climate Change Services Client ref.: Mr Sandeep Choudhury Roy DNV CLIMATE CHANGE SERVICES AS Veritasveien 1, 1322 HØVIK, Norway Tel: Fax: Org. No: NO MVA Summary: DNV Climate Change Services AS (DNV) has performed the verification of the emission reductions reported for the Gold Standard (GS) project activity Household Biogas plants installed in rural areas of Maharashtra (GS Project ID: GS2519) for the period 9 May 2012 to 8 May In our opinion, the GHG emission reductions and GS Sustainable Indicators reported for the project in the GS monitoring report (version 04) of 1 September 2014 are fairly stated. The GHG emission reductions were calculated correctly on the basis of the approved monitoring methodology AMS-I.E (version 5) and the monitoring plan contained in the GS VER Project Design Document (PDD) version 3, dated 19 May Hence DNV is able to verify that the emission reductions from the GS project activity Household Biogas plants installed in rural areas of Maharashtra during the period 9 May 2012 to 8 May 2014 amount to tonnes of CO 2 equivalent with the emission reduction being tco 2 e for the period 9 May 2012 to 31 December 2012, tco 2 e for the period 1 January 2013 to 31 December 2013 and tco 2 e for the period 1 January 2014 to 8 May Report No.: Subject Group: Environment Indexing terms Report title: Key words Service Area Household Biogas plants installed in rural areas of Maharashtra in India Climate Change Kyoto Protocol Validation Clean Development Mechanism Verification Market Sector Energy Industry Work carried out by: Thamizharasi Kaliaperumal and Kakaraparthi Venkata Raman Work verified by: Krishnan Namboodiri Date of this revision: 4 September Rev. No.: Number of pages: No distribution without permission from the client or responsible organisational unit free distribution within DNV after 3 years Strictly confidential Unrestricted distribution 2002 Det Norske Veritas AS All rights reserved. This publication or parts thereof may not be reproduced or transmitted in any form or by any means, including photocopying or recording, without the prior written consent of Det Norske Veritas AS. Head Office: Veritasvn. 1, N-1322 HØVIK, Norway GS Verification Report Template, version 09,

3 GOLD STANDARD VERIFICATION REPORT Table of Content Page 1 INTRODUCTION Objective Scope Description of the project activity Methodology for determining emission reductions 2 2 Methodology Review of documentation Site Visits Reporting of findings 6 3 VERIFICATION FINDINGS Remaining issues (FARs) from previous validation / verification Project implementation Compliance of monitoring plan with monitoring methodology Information (data and variables) provided in the monitoring report that is different from that stated in the PDD Assessment of data and calculation of emission reductions Monitoring of Gold Standard Sustainable Indicators Air quality Livelihood of the poor Access to affordable and clean energy services Quantitative employment and income generation Quality of evidence to determine emission reductions Management system and quality assurance 13 4 VERIFICATION STATEMENT REFERENCES Appendix A Corrective action requests and forward action requests Appendix B Curriculum Vitae of the Team members Page i

4 GOLD STANDARD VERIFICATION REPORT Abbreviations AKKPS Aadivasi Khadi & Krishi Prasikshan Sansthan CAR Corrective Action Request CDM Clean Development Mechanism CH 4 Methane CL Clarification request CO 2 Carbon dioxide CO 2 e Carbon dioxide equivalent DNV Det Norske Veritas Climate Change Services AS DOE Designated Operational Entity DRB Demonstrably Renewable woody Biomass DVR Draft Validation Report EEMG Environment and Energy Management Group FAR Forward Action Request GHG Greenhouse gas(es) GS Gold Standard GWP Global Warming Potential IIT Indian Institute of Technology IPCC Intergovernmental Panel on Climate Change NO x Nitrogen Oxides NRB Non-renewable Biomass PDD Project Design Document PS Clean Development Mechanism Project Standard RET Renewable Energy Technologies SD Sustainable Development SO 2 Sulphur dioxide SPM Suspended Particulate Matter tco 2 e Tonnes of CO 2 equivalents UNFCCC United Nations Framework Convention on Climate Change VER Verified Emission Reductions VVS Clean Development Mechanism Validation and Verification Standard Page ii

5 1 INTRODUCTION M/s VNV Advisory LLP has commissioned DNV Climate Change Services AS (DNV) to carry out the verification of emission reductions reported for the Gold Standard (GS) project activity Household Biogas plants installed in rural areas of Maharashtra in India, for the monitoring period from 9 May 2012 to 8 May 2014 against Gold Standard criteria for Gold Standard VER project activities. This report contains the findings from the verification and a verification statement for the emission reductions. The project was registered as a Gold Standard project activity (Project ID: GS2519) /23/ and has a fixed crediting period starting from 9 May 2012 (two years prior to the retroactive registration with Gold Standard) /24/. This verification has verified emission reductions occurring for the period from 9 May 2012 to 8 May Objective Verification is the periodic independent review and ex post determination by a Designated Operational Entity (DOE) of the monitored reductions in GHG emissions that have occurred as a result of the Gold Standard registered project activity during a defined monitoring period. The objective of this verification was to verify emission reductions reported for the Household Biogas plants installed in rural areas of Maharashtra for the period 9 May 2012 to 8 May 2014 along with the GS indicators for sustainability criteria. 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 and information on compliance with chosen sustainability indicators is free from material misstatement. To verify that reported GHG emission data is sufficiently supported by evidence. To verify that reported performance data on chosen sustainability indicators is supported by evidence. The verification shall ensure that reported emission reductions are complete and accurate in order to be certified by the Gold Standard Foundation. 1.3 Description of the project activity The project activity comprises the installation of biogas plants (bio-digesters) with varying capacities of 2m 3, 3m 3, 4m 3 and 6m 3. All biogas plants have been installed and commissioned as of this monitoring period. Each household uses the dung of cows and other organic wastes to feed the digester for the production of biogas for thermal purpose. The Page 1

6 project activity results in the reduction of GHG emissions through displacement of nonrenewable wood used for thermal purposes in the baseline scenario (in ordinary stoves) with clean, sustainable and efficient biogas fed devices. Project Parties: India (host) Title of project activity: GS registration Id: Household Biogas plants installed in rural areas of Maharashtra GS2519 Baseline and monitoring methodology AMS-I.E (version 5) Sectoral scope(s): Project Participants: Location of the project activity: 1 - Renewable energy generation. Aadivasi Khadi & Krishi Prasikshan Sansthan (AKKPS) and VNV Advisory Service LLP. The project activity (i.e. the individual biogas digesters at households) is spread over 16 districts of Maharashtra, India. Geo ordinates of each project district has been provided in the monitoring report. Project s crediting period: 9 May 2012 to 8 May 2022 (GS crediting period /24/) Period verified in this verification: 9 May 2012 to 8 May Methodology for determining emission reductions The baseline for the project activity is the continued usage of fuel wood for household cooking and heat purpose. The project activity will thus replace non-renewable biomass. For the displacement of non-renewable biomass, the project applies the approved baseline methodology AMS-I.E, version 5 Switch from non renewable biomass for the thermal applications by the user /14/. According to the GS registered PDD /19/ and the applied methodology AMS-I.E (version 5) /14/ the emission reductions for the project are determined as follows: For displacement of non-renewable fuel wood, the baseline is the non-renewable biomass consumption per household that would have been used in the absence of the project activity times an emission coefficient for the non-renewable sources of biomass displaced /14//19/. ER y = B y * f NRB,y * NCV Biomass * EF projected_fossilfuel ER y B y f NRB,y NCV Biomass Where: = Emission reductions during the year y in tco 2 e = Quantity of biomass that is substituted or displaced in tonnes = Fraction of biomass used in the absence of the project activity in year y that can be established as non-renewable biomass using survey methods. This parameter is fixed ex-ante at 93% /19/. = Net calorific value of the non-renewable biomass that is substituted (IPCC default for wood fuel, fixed ex-ante is TJ/tonne) /18//19/. Page 2

7 EF projected_fossilfuel = Emission factor for the projected fossil fuel consumption in the baseline. A default value (as per the applied methodology) of 81.6 tco 2 /TJ has been used /14/. B y is calculated as the product of the number of appliances multiplied by the estimate of average annual consumption of biomass per appliance (tonnes/year) /14//19/. There are no project emissions to be accounted in the project activity as per the registered PDD /19/ and the applied methodology /14/. Leakage: The potential leakages as set out in the methodology /14/ are: a. The use/diversion of non-renewable woody biomass saved under the project activity by non-project households/users that previously used renewable energy sources In accordance with the registered PDD /19/, a survey has been conducted /3/ to assess this leakage and the survey results indicate that the requirement of firewood in the non project household is the same as before the project implementation. Hence there is no leakage considered under this category for the current monitoring period. b. If the equipment currently being utilized is transferred from outside the boundary to the project boundary, leakage is to be considered - The project activity does not lead to any leakage due to transfer of equipment from another activity or the existing equipment transfer to another activity, as all the biogas plants installed as part of the project activity are newly constructed. Thus, the emission reductions calculations are in line with the requirements of the methodology AMS-I.E (version 5) /14/ and the PDD /19/. The monitoring period is from 9 May 2012 to 8 May 2014 (both days inclusive). The total emission reductions achieved in this monitoring period of 9 May 2012 to 8 May 2014, amount to tco 2 e. Calculation details of emission reductions for this monitoring period are elaborated in section Assessment of data and calculation of emission reductions of this report. 2 Methodology The data presented in the monitoring report /1/ were assessed in detail through a review of the detailed project documentation /19//20//21/, survey studies /3/ and interviews with sample individual household member /26/ to /41/. Site inspection included observation of established monitoring and reporting practices. This enabled the verification team to assess the accuracy and completeness of the reported monitoring results /1//2/ and verify the correct application of the approved monitoring methodology /14/. DNV has assessed and determined that the implementation and operation of the project activity, and the steps taken to report emission reductions comply with the CDM criteria /11//12//13/ and relevant guidance provided by the GS /9//10/. The verification of the emission reductions has assessed all factors and issues that constitute the basis for emission reductions from the project. These include: Page 3

8 Desk review Site visit Reporting Supervision of work Technical review TA1.1ompetence DET NORSKE VERITAS Number of bio-digester systems installed Number of bio-digester operating systems Sample survey for working conditions of biogas digesters, firewood consumption in the project households and firewood consumption in the non-project households. GS Sustainability indicators The assessment involved a desk review of relevant documentation /3//19//20/ as well as onsite visits /26/to /41/. In line with the monitoring plan of the registered PDD /19/ and the validation report /21/, and as per the sampling guidance /17/ the sample size for acceptance sampling was calculated. The sample size was calculated using standard software /22/ based on the Acceptable Quality Level of 1% and Unacceptable Quality Level of 10% with alpha and beta at 5% which worked out to 68 households (with 90% confidence level and 10% error margin). Considering that the sample is homogenous, the households to be visited and whose documents to be checked were identified using simple random generation technique. During the site visit DNV visited and assessed 68 households spread across 3 districts (Bhandara, Gondiya and Nagpur) and verified the records and functioning of the bio-digesters apart from interviewing the householders. Verification team Type of involvement Role Last Name First Name Country Team leader Kaliaperumal Thamizharasi India (Verifier) Verifier Kakaraparthi Venkata India Raman Technical Namboodiri Krishnan India reviewer Duration of verification Desk review: 18 to 19 June 2014 On-site assessment: 4 and 5 July 2014 Reporting, calculation checks and QA/QC: 7 July 2014 to 4 September Review of documentation The monitoring report /1/ for the period 9 May 2012 to 8 May 2014, dated 17 June 2014, registered PDD version 3 dated 19 May 2014 /19/, project s GS Passport version 3 dated 21 Page 4

9 May 2014 /20/, VER calculations worksheets /2/ and the sample survey results /3/ submitted by the project participants were assessed as a part of the verification. Additionally, the monitoring plan contained in the registered PDD /19/, GS Passport (for the monitoring plan of Gold Standard Sustainable Indicators) /20/, validation report /21/, and the simplified baseline and monitoring methodology applied to the project AMS-I.E version 5 /14/ were also assessed as a part of the verification. 2.2 Site Visits On 4 and 5 July 2014, DNV performed on-site assessments. During the on-site assessment, DNV has applied standard auditing techniques to assess the quality of information provided. During the on-site assessment DNV carried out: An assessment of the implementation and operation of the registered project activity is as per the PDD for the project activity (version 3 dated 19 May 2014) /19/; A review of information flows for generating, aggregating and reporting the monitoring parameters; Interviews with relevant personnel to determine whether the operational and data collection procedures are implemented in accordance with the monitoring plan in the PDD; A cross check between information provided in the monitoring report /1/ and the survey /3/ conducted for the project activity; A check of the project bio digesters and observations of monitoring practices against the requirements of monitoring plan /19/; An assessment of sustainability indicators performance as per the GS passport /20/. During the on-site assessment, DNV interviewed the project household members regarding the function of bio digesters, their usage of fuel wood since the implementation of the project activity, the frequency and dependence on the biogas from the digesters for cooking. Interviewed organization AKKPS: Mr R S Pardhi RET members: Mr Nandagawdi Mr Hemraj Shivram Kapgale Mr Mohan Shankar Interview topics Implementation and operation of the GS Project Adherence to monitoring plan as per the PDD and the GS Passport Monitoring plan and procedures Monitoring procedure for Sustainable Indicator parameters. Whether the project has been implemented as planned Management procedures like internal reviews to minimise uncertainties in data monitoring and data management. Resources, training needs and procedures for operation and maintenance. Page 5

10 Project performance Local stakeholders Interaction with stakeholders and families involved in the project activity 2.3 Reporting of findings A corrective action request (CAR) is issued, where: i. Non-conformities with the monitoring plan or methodology are found in monitoring ii. iii. and reporting, or if the evidence provided to prove conformity is insufficient; Mistakes have been made in applying assumptions, data or calculations of emission reductions which will impair the estimate of emission reductions; Issues identified in a FAR during validation to be verified during verification have not been resolved by the project participants. A clarification request (CL) is raised if information is insufficient or not clear enough to determine whether the applicable CDM requirements have been met. A forward action request (FAR) is issued for actions if the monitoring and reporting require attention and/or adjustment for the next monitoring period. During this verification period one CAR and one CL has been raised by DNV. No FAR has been identified. The identified CAR and CL were satisfactorily addressed by the project participants by revising the monitoring report and the emission reduction calculation spread sheets (please refer to Appendix A for further details). There is no change made to the monitoring report version 04 dated 1 September 2014 compared to the initial version of the monitoring report received for verification (version 01 dated 17 June 2014) other than the changes made as a result of the verification findings. Page 6

11 3 VERIFICATION FINDINGS This section summarises the findings from the verification of the emission reductions reported for the Household Biogas plants installed in rural areas of Maharashtra for the period 9 May 2012 to 8 May Remaining issues (FARs) from previous validation / verification There are no pending FARs from the validation /21/ of the project activity. 3.2 Project implementation The project activity involved installation and operation of bio digesters of capacities of 2m 3, 3m 3, 4m 3 and 6m 3, at individual households, thus avoiding the use of non-renewable biomass like e fuel wood from forests in the baseline scenario. The project activity is spread across 16 districts in the state of Maharashtra in India. The project activity involved the installation of fixed-dome digesters which consist of one lower segment (digester) and a hemisphere over it which functions as a gas holder. The feed is fed into the digester via the inlet pipe and undergoes digestion in the digestion chamber. Anaerobic digestion takes place in the bio-digesters in which microorganisms break down biodegradable material (primarily cow dung) in the absence of oxygen. This process produces methane (CH 4 ) rich biogas, which serves as a substitute fuel for non-renewable biomass for cooking applications. The project activity has been fully implemented and operational during the site visit. As part of the site visit, DNV was able to confirm that the project implementation is in accordance with the project description contained in registered PDD /19/. 3.3 Compliance of monitoring plan with monitoring methodology The methodology applied for the project activity is AMS-I.E. Switch from Non-Renewable Biomass for Thermal Applications by the User, version 5 /14/. The monitoring plan /19/ implemented by the project participants describes about the monitoring organization, parameters to be monitored, monitoring practices, quality assurance, quality control procedures, data storage and archiving. DNV is able to confirm that the monitoring plan and formulae contained in the PDD /19/ are in accordance with the approved methodology adopted by the project activity, i.e. AMS-I E (version 5) /14/. 3.4 Information (data and variables) provided in the monitoring report that is different from that stated in the PDD The emissions reductions reported in this monitoring period are tonnes of CO 2 equivalents for the period from 9 May 2012 to 8 May 2014 /1//2/. The yearly estimated emission reductions in the registered PDD are tonnes of CO 2 equivalents /19/, which corresponds to an emission reductions of tonnes of CO 2 equivalents for the monitoring period covering 730 days (from 9 May 2012 to 8 May 2014). Since the same survey results /3/ form basis for the emission reduction calculation for this monitoring period /1/ and as well as the PDD /19/, there is no difference in the emission reductions achieved during the current monitoring period and the emission reductions estimated in the registered PDD /19/. Usage of Page 7

12 the same survey results is acceptable as, as per the registered PDD /19/, frequency of the survey is biennial for first retroactive crediting period. The survey was conducted by a third party (Environment and Energy Management group, Bhopal) in January 2014 /3/ and hence valid for the current monitoring period. Compliance of monitoring with the monitoring plan The monitoring has been carried out in accordance with the monitoring plan contained in the PDD dated 19 May 2014 /19/. The approved baseline methodology AMS-I E (version 5) has been applied for the project activity /14/. The monitoring period is from 9 May 2012 to 8 May I. According to the monitoring section of the PDD /19/, the following parameters have been monitored: Displacement or substitution of the non-renewable woody biomass - Biennial survey for first retroactive crediting period Checking of sampled biogas plants - Biennial survey for first retroactive crediting period Amount of firewood saved under the project activity that is used by non-project households/users Details of the monitoring parameters values for the current monitoring period are elaborated in the subsequent section 3.5 Assessment of data and calculation of emission reductions of this report. II. In line with the GS Passport /20/, following Gold Standard Sustainable Indicators has been monitored: Air quality Livelihood of the poor Access to clean and affordable energy Quantitative employment and income generation The monitoring for the project was found to be complete and in accordance with the approved monitoring methodology AMS-I.E (version 5) /14/. Knowledge of personnel associated with the project activity was also found to be satisfactory. Leakage data is based on sample survey of non-biogas user s /3/. Project participants monitor the diversion / use of non-renewable biomass saved under the project activity by non-project households, to account for diversion of non-renewable biomass saved under the project activity, by way of a sample survey as per the PDD /19/. The present survey conducted by Environment and Energy Management Group, Bhopal does not indicate any diversion of non-renewable biomass from the project activity during this monitoring period /3/. This was confirmed during the site visit interactions with the households. DNV confirms that the approach adopted in leakage estimation is as per the applied methodology AMS-I.E, version 5 /14/. Page 8

13 3.5 Assessment of data and calculation of emission reductions As described in the registered PDD version 3 dated 19 May 2014 /19/, the equation for the emission reductions calculations is based on the methodology AMS-I.E (version 5) /14/. As per the PDD, the algorithm for the emission reductions is as follows: ER y = B y * f NRB,y * NCV Biomass * EF projected_fossilfuel ER y B y f NRB,y Where: NCV Biomass EF projected_fossilfuel = Emission reductions during the year y in tco 2 e = Quantity of biomass that is substituted or displaced in tonnes. = Fraction of biomass used in the absence of the project activity in year y that can be established as non-renewable biomass using survey methods. This parameter is fixed ex-ante at 93% /19/. = Net calorific value of the non-renewable biomass that is substituted (IPCC default for wood fuel, fixed ex-ante is TJ/tonne) /18//19/. = Emission factor for the projected fossil fuel consumption in the baseline. A default value (as per the applied methodology) of 81.6 tco 2 /TJ has been used /14/. As per the registered PDD /19/, Quantity of biomass that is substituted or displaced in tonnes, B y = D y - Py Where, D y = fixed ex-ante as per baseline /19/. For the bio-digester of size 2m 3, 3m 3, 4m 3 and 6m 3, the ex-ante fixed firewood figures (in kg/month) are 230, 334, 434 and 650 respectively. P y = Project firewood usage will be monitored annually through a sample survey /3/, as per the registered PDD /19/. For the current monitoring period, following is the firewood consumption as per the survey conducted /3/. Size of biodigester (m 3 ) Number of bio digesters Before installation of Biogas plants (D y ), fixed exante (kg/month) Firewood consumption (P y ), for the monitoring period (kg/month) Amount of firewood displaced (B y = D y - P y ) (kg/month) Total number of bio digesters Page 9

14 Determination of sample size is done in accordance with Annex 5, EB 69, Guidelines for sampling and surveys for CDM project activities and programme of activities /16//17/, which specifies the reliability requirements and describes appropriate sampling methods applicable to small-scale projects. In accordance with EB Sampling guidelines /17/, a random sample survey was conducted by a third party Environment and Energy Management group, Bhopal /3/, an agency authorized by the project participants to assess the impact on local/ regional/global environment, social and economic development of the beneficiaries and other indirect benefits that the communities perceive from the GS VER project. DNV has assessed and reviewed the details of the survey reports /3/ and the field studies conducted for monitoring of Sustainable Indicators. The data and figures arrived at are representative of whole population. Hence the sum of baseline emissions for the total number of bio digesters of size 2m 3, 3m 3, 4m 3 and 6m 3 are calculated as per the above algorithm arrive at tco 2 e. Project Emissions: There are no project emissions to be accounted in the project activity as per the registered PDD /19/ and the applied methodology /14/. Leakage: The potential leakages as set out in the methodology /14/ are: a. The use/diversion of non-renewable woody biomass saved under the project activity by non-project households/users that previously used renewable energy sources As per the registered PDD /19/, a survey /3/ has been conducted in non-project households to assess this leakage. As per the survey conducted in non-project households, their requirement of firewood was same after the installation of the project activity as it was before. They were not utilizing any extra firewood. Therefore, leakage is not considered in the ER calculation for this monitoring period /1/. This has been monitored ex-post for the project activity through the monitoring parameter Amount of firewood saved under the project activity that is used by non-project households/users /19/. Details of the survey /3/ are as below: 30 non-project households have been surveyed in accordance with the PDD /19/, to determine the amount of firewood consumption before (firewood usage before 2009 in kg/month) and after (firewood usage after 2009 in kg/month) the project activity. It is evident from the survey results that there was no change in the non- project household s firewood consumption pattern. Hence there is no leakage considered under this category for the project activity. b. If the equipment currently being utilized is transferred from outside the boundary to the project boundary, leakage is to be considered - The project activity does not lead to any leakage due to transfer of equipment from another activity or the existing equipment transfer to another activity, as all the biogas plants installed as part of the project activity are newly constructed /25/. Hence there is no leakage considered for the project activity. Page 10

15 Thus the VERs for the project activity Household Biogas plants installed in rural areas of Maharashtra for the monitoring period from 9 May 2012 to 8 May 2014 are calculated to be tco 2 e. Year-wise emission reductions for the current monitoring period from 9 May 2012 to 8 May 2014 as follows: Period Emission reduction (tco 2 e) 9 May 2012 to 31 December January 2013 to 31 December January 2014 to 8 May Total for the complete monitoring period i.e. from 9 May 2012 to 8 May Since the same survey results /3/ form basis for the emission reduction calculation for this monitoring period /1/ and as well as the PDD /19/, there is no difference in the emission reductions achieved during the current monitoring period and the emission reductions estimated in the registered PDD /19/. Usage of the same survey results is acceptable as, as per the registered PDD /19/, frequency of the survey is biennial for first retroactive crediting period. The survey was conducted by a third party (Environment and Energy Management group, Bhopal) in January 2014 /3/ and hence valid for the current monitoring period. The input data for calculating the emission reductions, the calculating process and the result are complete and transparent and therefore, DNV is able to confirm the accuracy of the emission reductions /2/. 3.6 Monitoring of Gold Standard Sustainable Indicators Following Gold Standard sustainable indicators are to be monitored for the project activity as per the Passport, version 3 dated 21 May Air quality Livelihood of the poor Access to clean and affordable energy Quantitative employment and income generation These parameters are monitored through sample surveys as per the GS Passport /20/. DNV has assessed and reviewed the details of the survey reports /3/ and the field studies conducted for monitoring of Sustainable Indicators and found the results to be appropriate. The survey data and figures arrived at are representative of whole population. The survey has been conducted by a third party on behalf of the project participants in January 2014 /3/. Since the project is retroactive, biennial survey was conducted for this monitoring period. Annual survey will be conducted for the subsequent monitoring periods. This approach is similar to the monitoring of parameters required as per methodology AMS-I.E version 05, wherein Page 11

16 biennial survey can be conducted for monitoring the parameters /14/. Accordingly biennial survey has been conducted for both the monitoring parameters as per the PDD /19/ and the sustainable indicators as per the GS Passport /20/. Determination of sample size is done in accordance with Annex 5, EB 69, Guidelines for sampling and surveys for CDM project activities and programme of activities /16//17/, which specifies the reliability requirements and describes appropriate sampling methods applicable to small-scale projects. In accordance with EB Sampling guidelines, a random sample survey was conducted by a third party Environment and Energy Management group, Bhopal, an agency authorized by the project participants to assess the impact on local/ regional/global environment, social and economic development of the beneficiaries and other indirect benefits that the communities perceive from the GS VER project. The following observations are from the survey conducted to assess the sustainable development indicators. I. Environment Air quality As mentioned in the project Passport /20/, the sample survey /3/ has been conducted in households having biogas (project households) and still using traditional stoves (non-project households) and it reveals that there is fair decrease in the level of SPM (36.80% decrease), SO 2 (27.55% decrease) & NO x (19.35% decrease). All the beneficiaries experience positive impact of biogas in improving the health especially of the women and children in the family, due to the improvement in the indoor air quality. II. Social Development Livelihood of the poor The project utilizes cow dung for the generation of biogas, which in turn is used for cooking purpose. This effective waste management system results in the reduction of breeding of flies and mosquitoes and in turn reduction in diseases like malaria and other related diseases. As per the survey conducted for the project activity /3/, all 251 sample bio-digesters are in working conditions, thus resulting in effective waste management system and hence improvement in livelihood of the poor. Also the use of slurry improves nutrient recycling in agriculture and can substitute chemical fertilizers, thus reducing the related environmental problems. DNV has verified 68 digesters (sampled and non-sampled) and found all of them to be in working condition Access to affordable and clean energy services The project activity is switch over from firewood to renewable biogas generated from anaerobic bio-digesters utilizing cow dung. As per the survey conducted, the beneficiaries of the project activity use firewood very scarcely (to the extent of 2.00%), compared to the baseline case. Thus there is replacement of almost 98.00% of firewood due to the project activity and enough clean energy is generated by the biogas plant to take care of the energy needs of the family. Page 12

17 III. Economic and Technological Development Quantitative employment and income generation The project has a positive impact on the creation of employment for technicians and qualified workers. The project activity aims at generation / retaining of 20 employments per annum /4//5/. So far under the project activity 52 local people have been employed. In the year 2009, 22 employments have been created under the project activity and 15 each in the year 2010 and in the year In the year employments, in the year employments and in the year 2014 (as of April 2014) 6 employments have been created. Hence, as of 8 May 2014 (end date of the current monitoring period), a total of 82 employments have been generated under the project activity. Employment details have been cross checked from the project participant employee data base /5/ and the salary receipts /4/. 3.7 Quality of evidence to determine emission reductions The emission reductions reported during 9 May 2012 to 8 May 2014 was verified to be tco 2 e. The data presented in the revised monitoring report of version 04 dated 1 September 2014 /1/ was assessed by reviewing in detail project documentation, interviews with personnel at the project site, interviews with the project participants and non-project households, sample survey reports, etc. This has enabled the verification team to assess the accuracy and completeness of the reported monitoring results and verify the correct application of the approved monitoring methodology. All necessary documentation is collected, referenced and aggregated and is easily accessible in electronic format. No assumptions are used that have any material influence on reported emission reductions. 3.8 Management system and quality assurance AKKPS have sufficiently established management procedures and have implemented them effectively to ensure that the process is consistent. The procedures cover management responsibilities, data monitoring procedures and training procedures. DNV considers that the suitability of the management system for monitoring and reporting is adequate. Also DNV confirms that the responsibilities and authorities for monitoring and reporting are in accordance with the responsibilities and authorities stated in the monitoring plan /19/. Page 13

18 4 VERIFICATION STATEMENT DNV Climate Change Services AS (DNV) has performed the verification of the emission reductions that have been reported for the Gold Standard (GS) project activity Household Biogas plants installed in rural areas of Maharashtra (GS project ID: GS2519) for the period 9 May 2012 to 8 May The project participants are responsible for the collection of data in accordance with the monitoring plan and the reporting of GHG emissions reductions from the project. It is DNV s responsibility to express an independent verification statement on the reported GHG emission reductions from the project and information on compliance with chosen sustainability indicators. DNV conducted the verification on the basis of the monitoring methodology AMS-I.E (version 5), the monitoring plan contained in the GS registered PDD, version 3 dated 19 May 2014, GS Passport version 3 dated 21 May 2014 and the GS carbon monitoring report (version 04) dated 1 September The verification included i) checking whether the provisions of the monitoring methodology and the monitoring plan were consistently and appropriately applied and ii) the collection of evidence supporting the reported data. DNV s verification approach draws on an understanding of the risks associated with reporting of GHG emission data and the controls in place to mitigate these. DNV planned and performed the verification by obtaining evidence and other information and explanations that DNV considers necessary to give reasonable assurance that reported GHG emission reductions are fairly stated. In our opinion the GHG emissions reductions of the Household Biogas plants installed in rural areas of Maharashtra (GS project ID: GS2519) for the period 9 May 2012 to 8 May 2014 are fairly stated in the GS monitoring report (version 04) dated 1 September 2014 and the reported information on compliance with chosen sustainability indicators is free from material misstatement. The GHG emission reductions were calculated correctly on the basis of the approved baseline and monitoring methodology AMS-I.E (version 5) and the monitoring plan contained in the Project Design Document version 3, dated 19 May 2014 and the Gold Standard Passport, version 3, dated 21 May DNV Climate Change Services AS is able to verify that the emission reductions from the project activity GS 2519 Household Biogas plants installed in rural areas of Maharashtra during the period 9 May 2012 to 8 May 2014 amount to tonnes of CO 2 equivalent and reported information on compliance with chosen sustainability indicators is free from material misstatement. Year-wise emission reductions for the current monitoring period from 9 May 2012 to 8 May 2014 as follows: Period Emission reduction (tco 2 e) 9 May 2012 to 31 December Page 14

19 1 January 2013 to 31 December January 2014 to 8 May Total for the complete monitoring period i.e. from 9 May 2012 to 8 May Bangalore and Oslo, 4 September 2014 Thamizharasi Kaliaperumal Verifier Michael Lehmann Director of Services and Technologies DNV Climate Change Services AS Page 15

20 5 REFERENCES Documents provided by the Project Participants. /1/ AKKPS and VNV advisory LLP: Monitoring Report for the project activity Household Biogas plants installed in rural areas of Maharashtra, version 01 dated 17 June 2014, for the monitoring period of 9 May 2012 to 8 May 2014 and the revised version 04 dated 1 September /2/ AKKPS and VNV advisory LLP VER calculation Excel worksheet for the monitoring period of 9 May 2012 to 8 May /3/ Environment and Energy Management group, Bhopal: Survey report for the monitoring parameters for the monitoring period of 9 May 2012 to 8 May 2014, dated January 2014 and the associated excel spread sheet /4/ AKKPS: Salary vouchers of the employees. /5/ AKKPS: Employees database. /6/ AKKPS: Agreement between all bio-digester owners and AKKPS confirming transfer of voluntary carbon credit rights. /7/ Agreement between AKKPS and VNV advisory LLP for the project activity dated July 2013 /8/ Undertaking given by plant owners (all) of the project activity to confirm that bio-digesters are not included in any other voluntary programme or CDM activity (in the agreement). Background documents related to the design and/or methodologies employed in the design or other reference documents. /9/ The Gold Standard: The Gold Standard Requirements, version 2.2 /10/ The Gold Standard: The Gold Standard Toolkit, version 2.2 /11/ CDM Executive Board: Clean Development Mechanism Validation and Verification Standard, version 06.0 /12/ CDM Executive Board: Clean Development Mechanism Project Standard, version 06.0 /13/ CDM Executive Board: Clean Development Mechanism Project Cycle Procedure, version 06.0 /14/ CDM Executive Board: Baseline and monitoring methodology AMS-I.E Switch from non-renewable biomass for thermal applications by the user, version 05. /15/ CDM Executive Board: General guidance on leakage in biomass project activities, version 3. /16/ CDM Executive Board: Standard - Sampling and surveys for CDM project activities and programme of activities, version 04.1 /17/ CDM Executive Board: Guideline - Sampling and surveys for CDM project activities and programmes of activities, version 03.0 /18/ IPCC 2006: Chapter 1 and 2 of Guidelines for National Greenhouse Gas Inventories /19/ AKKPS and VNV advisory LLP: PDD of the project activity Household Biogas plants Page 16

21 installed in rural areas of Maharashtra, version 3 dated 19 May /20/ AKKPS and VNV advisory LLP: Passport of the project activity Household Biogas plants installed in rural areas of Maharashtra, version 3 dated 21 May /21/ DNV Climate Change Services AS: Validation Report of the project activity Household Biogas plants installed in rural areas of Maharashtra, version 2, dated 22 May /22/ Sample size calculator (web-link last accessed on 18 July 2014) /23/ Project activity (GS2519) Household Biogas plants installed in rural areas of Maharashtra registration details with the Gold Standard (web-link last accessed on 2 August 2014) &limit=15&name=2519&standardid= /24/ The Gold Standard: Communication from the GS to the project participant & the project consultant on the project registration (which has details on the project crediting period) dated 9 June /25/ AKKPS: Commissioning certificates (dated from the year January 2009 to year 2011) of the bio digesters under the project activity. Few of the persons interviewed during the initial verification, or persons who contributed with other information that are not included in the documents listed above. /26/ Mr R S Pardhi - AKKPS /27/ Mr Nandagawdi - RET member /28/ Mr Hemraj Shivram Kapgale RET member /29/ Mr Mohan Shankar RET member /30/ Mr Ravindra Govinda Roa /31/ Mr Manoj Vittal Anuleh /32/ Mr Punjab Sanaph Salameh /33/ Mr Dayaramnath /34/ Mr Moreshwar Ramaji /35/ Mr Shesharam Hariji Choudhary /36/ Mr Tararam Sriram Mallewar /37/ Mr Jeevan Namdev /38/ Mr Khushal Chalte /39/ Mr Narendra Chandewah /40/ Ms Kalpana Nakade /41/ Ms Ramabhai Manoharji. - o0o - Page 17

22 APPENDIX A CORRECTIVE ACTION REQUESTS, CLARIFICATION REQUESTS AND FORWARD ACTION REQUESTS

23 Corrective action requests CAR ID Corrective action request CAR 1 Following discrepancies found in the monitoring report, version 01 a. Estimated amount of GHG emission reduction for this monitoring period in the registered PDD is provided wrongly. b. Section A.5: Complete crediting period for the project activity not provided. c. Details of survey report, including the figures not seen. d. Section E: ER algorithm and the sample calculation of emission reduction not provided. Response by Project Participants a. Estimated amount of GHG emission reduction has been revised in Monitoring report Ver 03 b. Complete crediting period for the project activity has been revised in Monitoring report Ver 03 c. Details of the survey report are included in Monitoring report Ver 03 d. ER algorithm and the sample calculation of emission reduction are included in Monitoring report Ver 03 DNV s assessment of response by Project Participants The revised monitoring report, version 4 dated 1 September 2014 /1/ has been checked for the issues identified and found to be OK. CAR 1 closed. Clarification requests CL ID Clarification request Response by Project Participants CL 1 Supporting details for the sustainable Employee database along with copy of monitoring indicator Quantitative employees salary vouchers has been employment and income generation not attached as Annex-1 provided. DNV s assessment of response by Project Participants Employee database /5/ along with copy of employees salary vouchers /4/ have been provided now by the project participants. CL is closed.

24 Forward action requests from the project validation FAR ID Forward action request No FAR was issued Summary of how FAR has been addressed in this reporting period Assessment of how FAR has been addressed Forward action requests from this verification FAR ID Forward action request Response by Project Participants No FAR was raised during this verification period. DNV s assessment of response by Project Participants - o0o -

25 APPENDIX B CURRICULA VITAE OF THE VERIFICATION TEAM MEMBERS

26 Thamizharasi Kaliaperumal Ms Thamizharasi Kaliaperumal holds a Bachelor of Technology Degree in Chemical Engineering. She has an overall experience of around five years in Chemical /Petrochemical processing industries (Technical Services & Energy Management) and CDM Consultancy altogether. Her main areas of work in Energy Management include Pinch analysis, Thermography survey, Analysis of Specific consumption of energy, Additive addition in fuel oil, Steam Traps audit for condensate return, Performance of energy & mass balance and Energy Audits in Chemical /Petrochemical industries. Her scope of work in Technical Services include Production support, Process Trouble shooting of Ammonia plant operation, especially for Primary & Secondary Reformers, Shift converter, CO 2 Absorption section and Synthesis Loop sections, Assessment of catalyst performance, Project feasibility studies (Carbon di-oxide recovery plant) and Management Information System. She has completed ISO 50001: Energy Management System, Lead Auditor Program, certified by IRCA, OHSAS 18001: Occupational Health and Safety Management Lead Auditors Program, certified by IRCA and ISO 14001: Environmental Management System Auditor / Lead Auditor Program, certified by IRCA and DNV Training Programme on Corporate GHG Inventory. She has experience of more than 3 and half years in validation and verification of numerous CDM projects. Her qualification and industrial experience demonstrate her sufficient sectoral competence in areas of TA 1.2 Energy Generation from Renewable Energy Sources, TA 3.1 Energy Demand, TA 3.2 Household end use energy efficiency and TA 5.1/11.1/12.1 Chemical Processes Industries. Kakaraparthi Venkata Raman Mr Kakaraparthi Venkata Raman holds a bachelor degree in Chemical Engineering (B.Tech) and a Diploma in Management. He has an overall experience of 18 years in the Chemical Process Industry - Fertilisers and Chemicals industry (FACT). His main areas of work include a) Technical Services (for Ammonia, Urea, Co-generation thermal power plants (captive), and complex fertilizers plants) for 10 years b) Erection, commissioning and hands-on operation of state of art HTAS 900 TPD Ammonia plant c) Management and operation of Sulphuric acid plant as Plant Manager and d) assisting Management of production unit (General Manager) in management Information System operation and planning of Production & Operations. As a part of the Technical services team, involved in the conduction of technical energy audits of plants and in HAZOP studies (under guidance of EIL). Joined DNV in November 2005 as Auditor. Till date has experience of around 7.5 years in validation and verification of CDM/JI projects. For the last five to four years, holding the responsibility of Senior Manager (Technical) / (Operations), in addition to working on projects as either Team Leader or Technical Reviewer. As per the UNFCCC competency requirements, the industrial experience and project experience in CDM demonstrate sufficient sectoral competence in areas of (a) 1.1 Thermal energy generation from fossil fuels and Biomass as well as thermal electricity from solar (b) 1.2 Energy Generation from renewable energy sources (c) 5.1/4.13/11.1/12.1 Chemical Processes Industries and (d) 13.1 Waste handling and disposal.

27 Krishnan Namboodiri Mr Krishnan Namboodiri, Senior CDM Specialist, DNV Kochi, India, holds graduate degree in chemical engineering and has done a short term diploma course in Management. Prior to joining DNV in 2008, has had 24 years of direct work experience in the fertilizer and chemicals industry. Work experience covers 5 years in process design & engineering for chemical industry 7 years in technical services including environment management activities, 7 years in project management and 5 years in training & corporate planning in fertilizer & petrochemical manufacturing units. Has been actively involved in Management System Audits as per ISO for more than 8 years. The above work experience includes-(a) experience in steam system optimisation & trouble shooting, development of improvement schemes in large fertiliser & caprolactum complex (b) Design and engineering, efficiency studies and development of efficiency improvement schemes for fossil fuel fired steam & power generation plants (c) Implementation of energy saving measures in Ammonia plants, sulphuric acid plant etc (d) Monitoring, trouble shooting and development & implementation of of improvement schemes for of pollution control facilities (chemical, aerobic & anaerobic treatment systems ) in Fertiliser and petrochemical complex. Development & implementation of landfill facilities for soild and hazardous wastes from fertiliser & caprolactam manufacturing complex. He has received extensive training in the CDM validation and verification process. He is an appointed GHG auditor for the CDM validation and verification program of DNV and has performed validation & verification and Technical Review of several CDM, VCS and GS projects in India and other countries. His qualification, industrial experience and experience in CDM demonstrate his sufficient sectoral competence in (1) Thermal energy generation from fossil fuels as well as thermal electricity from solar and (2) waste handling and disposal. (3) Energy demand (4) Chemical process industries (5) Household end use energy efficiency and (6) Energy generation from renewable energy sources -o0o-