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1 Component project activity design document form for small-scale CDM component project activities (Version 05.0) Complete this form in accordance with the Attachment Instructions for filling out the component project activity design document form for CDM small-scale component project activities at the end of this form. COMPONENT PROJECT DESIGN DOCUMENT (CPA-DD) Title of the CPA Project Gaia Cook Stove Programme of Activities - CPA0004 Haiti Version number of the CPA-DD 1.0 Completion date of the CPA-DD 25/11/2016 Title of the PoA to which the CPA is included Project Gaia Cook Stove Programme of Activities (PoA) Host Party Haiti Estimated amount of annual average GHG emission reductions Applied methodology(ies) and, where applicable, applied standardized baseline(s) Sectoral scope(s) linked to the applied methodology(ies) 44,071t CO 2 e AMS-I.E Switch from non-renewable biomass for thermal applications by the user version 6.0 No Standardized baseline has been selected for the PoA Energy industries renewable/non-renewable sources (1) Version 05.0 Page 1 of 43

2 SECTION A. General description of CPA A.1. Title of the proposed or registered PoA POA Title: Project Gaia Cook Stove Programme of Activities (PoA) Version: 1.0 A.2. Title of the CPA CPA Title: Project Gaia Cook Stove Programme of Activities - CPA0004 Haiti Version: 1.0 Completion Date: 26/07/2016 A.3. Description of the CPA The purpose of the CPA, under the Project Gaia Cook stove Programme of Activities (PG PoA) is to displace the use of non-renewable biomass for cooking in households through the dissemination of energy efficient cook stoves powered by ethanol, a renewable energy source. The CPA is of the small-scale type falling under sectoral scope: Energy industries renewable/nonrenewable sources (1). The CPA will be implemented within the national boundary of Haiti as described in section A.7 of the CPA-DD. Cook stoves distributed under this CPA will not exceed a total installed/rated capacity of 45MWth. Project Gaia Inc. will be the Coordinating/Managing Entity (CME) of the programme while the CPA implementer will be Novogaz S.A. As the CPA implementer, Novogaz S.A will be responsible for the following: Ensure that the CPA is implemented. Operate and maintain the CPA for the duration of the project; Keep records of parameters as per the monitoring plan and provide hard and electronic records to the CME on a regular basis and provide the CME and DOE with required documents and access to stove users. Make available staff for validation and verification where applicable. Upon implementation, the CPA is expected to achieve total emission reductions of 308,497 tco 2 e during the first crediting period and an annual average of 44,071 tco 2 e. Besides reducing the greenhouse gases (GHG), the project will result in the following sustainable development benefits in line with the PG PoA. Environmental Benefits 1. The project will reduce deforestation and forest degradation in areas where non-renewable biomass is used as a source of fuel. About 89.5% of Haitian population use charcoal or wood as their cooking fuel 1 Consequently, the large dependency on wood fuel is principal driver for deforestation in Haiti, whose forest cover has diminished to about 2% of the total land cover. 2 A reduction of dependency on charcoal and wood fuel through the 1 Fafo; PNUD. Survey of Living Conditions in Haiti Tables and Pages 51 and 52 2 Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Fuelwood Resources, ESMAP, 2007, Pg. 33. Version 05.0 Page 2 of 43

3 Implementation of the CPA, will thus contribute to the overall stability of forest ecosystems, support biodiversity and maintain cultural and aesthetic value of forestlands. Social-economic Benefits 1. The project will reduce indoor air pollution through reduced combustion of non-renewable biomass in households that previously used non-renewable biomass for their cooking needs. According to the WHO report on indoor air pollutions (2007) 3, toxic smoke from the combustion of firewood is responsible for a range of deadly chronic and acute health effects such as child pneumonia, lung cancer, chronic obstructive pulmonary disease, and heart disease, particularly for women and children who spend a large portion of their time near the fireplaces. 2. The project is expected to reduce the economic burdens to households especially those at the base of the pyramid. According to a market analysis done by Novogas, the Haitian households typically have an average income of $100- $125 USD per month and an average monthly budget for fuel of $35-40 USD. This position is corroborated with a (USAID, 2011) study that states that households in Haiti spend about 28% of the their annual income on fuel purchase. Compared with current users of ethanol for cooking who consume 3 gallons of fuel per month, which translates to less than USD 21 per month. A.4. Entity/individual responsible for the operation of CPA The entity responsible for the proposed CPA is Novogaz S.A based in Haiti and will also be the distribution organisation (DO) for the dissemination of the stoves in Haitian households. Project Gaia Inc. is the Coordinating/Managing Entity. A.5. Technical description of the CPA Facilities, systems and equipment in operation in the baseline scenario Provision of household energy needs in Haiti is primarily dominated by the use of charcoal and wood. USAID estimates that about 70% of the households energy requirements are met by charcoal and wood. 4 About 89.5% of the population use charcoal or wood as their cooking fuel 5 Consequently, the large dependency on wood fuel is principal driver for deforestation in Haiti, whose forest cover has diminished to about 2% of the total land cover. 6 An ESMAP study estimates that Haitians use at least 4 million tons of wood annually, 33% of which is transformed into charcoal, mainly for cooking purposes. 7 In Haiti s capital, Port-au-Prince, a USAID commissioned study revealed that approximately 413,000 tons/year of charcoal is consumed among a population of 3.5 million residents and a household size of 4.9. The average urban household interviewed during the study consumes 2.27 kg of charcoal per day while estimates from (ESMAP, 2007) show that rural households consume about 1.5kg of wood per day. It is difficult to determine charcoal usage among rural households due to seasonal variations of its use and the non-standardized measure of its sale i.e. charcoal is often sold in varying measures of quantity. However, estimates place usage at around 2.18kg/day in the rainy season among wealthier households. 3 World Health Organization, Indoor Air Pollution: National burden of Disease Estimates. Geneva: WHO (2007) 4 USAID, 2010: Assessment of Haiti Alternative Cooking Technologies Programme, page Al-2 5 Fafo; PNUD. Survey of Living Conditions in Haiti Tables and Pages 51 and 52 6 Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Fuelwood Resources, ESMAP, 2007, Pg Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Fuelwood Resources, ESMAP, 2007, Pg 33. Version 05.0 Page 3 of 43

4 CDM-SSC-CPA-DD-FORM Although there is a government policy in place in Haiti promoting the energy efficient use of charcoal and fuel wood, there are no specific guidelines to be followed.8 Therefore, in line with paragraph 46 of the CDM Project Standard version 09.0, it is assumed that the inefficient use of charcoal and fuel wood will continue in the baseline situation. In this regard, the baseline scenario is a continuation of the current practice, thus identical to the scenario existing prior to the implementation of the CPA. The existing facilities and systems operating in the baseline are graphically represented as follows: Figure 1: Charcoal stove made of rebar in use. Source: Kayje Booker Figure 2: Firewood in use. Source: Steven Warlin Facilities, systems and equipment in the project scenario 8 Haiti Energy Sector Development Plan Version 05.0 Page 4 of 43

5 The CPA will introduce measures that will reduce the emission of carbon dioxide through the displacement of non-renewable biomass. The CPA will involve the distribution of energy efficient cook stoves powered by ethanol to households for cooking purposes. The CME will work with the CPA implementers in the distribution of the stoves to the end-users. The stoves to be distributed will have a higher efficiency compared to the baseline technology, which is composed of inefficient wood fuel cook stoves, and/or kerosene powered stoves. The stoves will be of the following specifications 1. Single Burner Stainless Steel Stove The stove is made out of stainless steel burner parts, body of stainless steel; galvanized steel and high quality enamel finish with one burner. The stove has an approximate lifetime of 10 years. Has a power rated capacity of 1.5 kwth per burner The stove burn using only ethanol Can burn 1 litre of ethanol in 4.5 hours under high power and 9 hours under low power Has only one burner for cooking Efficiency of the stove is greater than 60% 2. Double Burner Stainless Steel Stove The stove is made out of stainless steel burner parts, body of stainless steel, galvanized steel, and high quality enamel finish with double burner. The stove has an approximate lifetime of 10 years. Has a power rated capacity of 1.5 kwth per burner making a total of 3.0 kwth its capacity Can burn 1 litre of ethanol in 4.5 hours under high power and 9 hours under low power per burner Has double burner for cooking Efficiency of the stove is greater than 60% 3. Single Burner Aluminium stove All stainless steel burner parts, body of aluminium, galvanized steel, aluminium single burner with a rated lifetime of 6 years Has a power rated capacity of 1.5 kwth per burner Can burn 1 litre of ethanol in 4.5 hours under high power and 9 hours under low power Efficiency of the stove is greater than 60% 4. Double Burner Aluminium Stove All stainless steel burner parts, body of aluminium, galvanized steel, aluminium double burner with a rated lifetime of 6 years Has a power rated capacity of 1.5 kwth per burner making a total of 3.0 kwth its capacity Can burn 1 litre of ethanol in 4.5 hours under high power and 9 hours under low power per burner Efficiency of the stove is greater than 60% Figure 3 and Figure 4 below show typical stove types to be distributed under the CPA while Figure 5 shows the fuel canister. Version 05.0 Page 5 of 43

6 CDM-SSC-CPA-DD-FORM Figure 3: Double Burner Stove Figure 4: Single Burner Stove Figure 5:Fuel canister Transfer of technical know how Transfer of technical know-how will be achieved by the distribution of state-of-the-art Clean Cook stoves imported from Clean Cook Ltd a Swedish company. The CPA Implementing entity will provide training to the end-users at the time of stove purchase Project Gaia will ensure that the implementing partners have the necessary skills for training the end-users on the use of the stoves. The end-user agreement will only be singed once the training has been provided and the customer is satisfied. In addition the end-users will be provided with a phone contact of Project Gaia or its country representatives that they can call for any clarification about the usage of the stoves or in case of any complaint that they may have concerning the stove or the project as a whole. The training will ensure that the users are well aware of the safe operation procedures of the stoves in order to minimize the risk of accidents. Energy mass flows and balances of the equipment distributed in the CPA begins with users filling the stainless steel canisters with ethanol. Each canister can hold up to 1.2 litres of ethanol and is easily detachable from the body of the stove for ease of refilling and safety purposes. Since ethanol is a volatile fuel, it easily vaporises into the chimney where it is combusted to give a hot flame. The cook stove is equipped with a regulating lever that enables the user to turn the flame on and off or to adjust its strength. Under the high flame, a filled canister enables the stove to burn for 4.5 hours under high power and 9 hours under low power. Repairs and replacements of project stoves In case the project stove breaks down during the warranty period, the project implementer shall provide a replacement stove. In case the stove breaks down after the warranty period has expired Version 05.0 Page 6 of 43

7 CDM-SSC-CPA-DD-FORM then repairs can be provided by the CME through the CPA implementer at a fee. Any repairs or replacements done shall be captured in a hard copy book for reference purposes. A.6. Party(ies) Name of Party involved (host) indicates host Party Private and/or public entity(ies) CPA implementer(s) (as applicable) Indicate if the Party involved wishes to be considered as CPA implementer (Yes/No) Haiti (host) Novogaz S.A No A.7. Geographic reference or other means of identification The CPA will be implemented within the boundary of the host country (Haiti) as defined by the figure below and the coordinates. Figure 6: Geographical boundary of Haiti Point Latitude Longitude Point '45.92"N 71 45'18.27"W Point '27.02"N 71 59'55.92"W Point '20.42"N 71 43'24.71"W Point '0.96"N 71 44'47.59"W Point '1.18"N 73 26'9.59"W Point '13.85"N 73 16'24.09"W Point '21.67"N 74 27'41.98"W Version 05.0 Page 7 of 43

8 A.8. Duration of the CPA CDM-SSC-CPA-DD-FORM A.8.1. Start date of the CPA Start date of CPA: 01/12/2015 In accordance with the CDM Glossary of terms version 08.0, the start date of is defined as the earliest date at which either the implementation or construction or real action of a CDM project activity or CPA begins. Following the above guidance, the start date is defined as the date when the first ethanol cook stove was distributed to an end user in Haiti. A.8.2. Expected operational lifetime of the CPA 21 years A.9. Choice of the crediting period and related information First crediting period 7 years renewable twice for a total of 21 years. A.9.1. Start date of the crediting period 01/01/2017 or the date of PoA registration whichever occurs later. A.9.2. Length of the crediting period First crediting period 7 years renewable twice for a total of 21 years. A.10. Estimated amount of GHG emission reductions Emission reductions during the crediting period Years Annual GHG emission reductions (in tonnes of CO 2 e) for each year , , , , , , ,788 Total number of crediting years 7 Annual average GHG emission reductions over the crediting period 44,071 Total estimated reductions (tonnes of CO 2 e) 308,497 A.11. Public funding of the CPA The CPA does not make use of any ODA. The CPA implementing entity has provided a signed letter to corroborate this. Version 05.0 Page 8 of 43

9 A.12. Debundling of small-scale component project activities CDM-SSC-CPA-DD-FORM In accordance with the methodological tool: Assessment of debundling for small-scale project activities version 04.0, paragraph 17 if each of the independent subsystems that are distributed in multiple locations are not greater than 1% of the small-scale thresholds defined by SSC methodologies, then the CPA is exempted from performing a de-bundling check i.e. considered as being not a de-bundled component of a large scale activity. The CPA has already demonstrated in section D.5 that it comprises of distribution energy efficient cook stoves powered by a renewable source to multiple locations (households). Further to this the CPA through the manufacturer s specification has demonstrated that the units are not more than 1% of the small-scale threshold and is therefore exempted from debundling check. A.13. Confirmation for CPA The CPA is neither registered as an individual CDM project activity nor is it part of another registered PoA. All Cook stoves distributed under this CPA will be uniquely identifiable by a serial number as further documented in CPA eligibility criteria in section D.5 of the CPA-DD. A.14. Contact information of responsible persons/ entities for completing the CDM-SSC- CPA-DD-FORM Entity: Carbon Africa Ltd Name: Elijah Isabu Date: 26/07/2016 SECTION B. Environmental analysis B.1. Analysis of the environmental impacts At present, there are no regulations that require cook stove projects to undertake an Environmental Impact Assessment in Haiti. In addition to this, the CPA is not expected to harm the environment in any way. Instead, it is expected that the CPA will contribute towards the improvement of the environment by displacing the use of charcoal and wood that are the main the main drivers of deforestation. An analysis of the Environmental Impact Assessment is therefore not carried out for the CPA. SECTION C. Local stakeholder consultation C.1. Solicitation of comments from local stakeholders Based on the definition of stakeholder from Glossary of CDM terms version (08.0) the following groups of people were identified as stakeholders: Members from the wider project area and members of the general public; Academia; Government departments and agencies (local, district and national) ; and NGOs, community representatives and donor representatives General Public: The general public is a stakeholder because they will be the end-users of the ethanol powered stoves. Version 05.0 Page 9 of 43

10 Academia: Higher learning institutions are considered stakeholders because of relevant data and information they might possess regarding the region that the developer may not be aware of. Government representatives and Designated National Authority: Government representatives and the Designated National Authority are considered stakeholders because the implementation of the project is expected to impact on the achievement of a number government policies and sustainable development goals in relation to poverty reduction and energy provision. NGOs, community representatives and donor representatives: NGOs, community representatives and donors are considered stakeholders because of their unique position as direct contact with the community members. How stakeholder comments were solicited Comments from the various groups of stakeholders were solicited by the use of s, newspaper adverts, and consultation meetings, as further described below: invitations: Stakeholders whose contact details were available were invited by the use of s. Newspaper adverts: The general public was invited through advertisement in the local newspaper. The announcement was published on 30 th March Social media advertisement and invitation: The general public was invited through online advertisements on Novogaz S.A s facebook page. Phone calls: Personal invitations were made through phone calls throughout the entire period before the date of the LSC meeting. The stakeholder meeting was conducted at PetionVille in Port-au-Prince Haiti on 29 th April C.2. Summary of comments received The following is a summary of the comments received from the stakeholders as well as public officials representing both local and national government. There were many comments related to ease of use, speed and cleanliness of the ethanol stove compared to charcoal stoves. Most participants underestimated the amount of carbon dioxide and other pollutants released by the burning of solid fuels such as charcoal. The negative effects of these pollutants was also unknown and many comments were made that the government should be responsible for lack of awareness of this issue in the population at large. There was mention of fuel volatility and one user stated she felt the fuel was either leaking from the canister or burning too quickly. Novogaz staff explained that this is an issue related to the canister not sitting properly in the stove case and it was demonstrated to the user how the canister should be adjusted properly to prevent fuel loss due to evaporation. Several participants were concerned that the least expensive stove ($ 25 USD) was sold out and the next stove was too expensive ($36 USD) for the average person who currently uses charcoal. Novogaz staff explained that in the next 6 months, they plan to assemble a low cost stove to be priced at $20 USD. One person asked about future fuel availability and ability to find fuel at many locations. Novogaz staff explained that they keep several months of fuel supply in their storage tanks and have been adding several distribution outlets on a monthly basis. Version 05.0 Page 10 of 43

11 The mayor of a local commune noted that since his constituents live on a hillside with no access to roads, the Novogaz stoves and fuel are a big advantage compared to other clean burning stoves such as propane since there are no propane distributors in the area and it is very heavy to carry the tanks uphill to their homes. Several participants stated the difference with charcoal stoves and the lack of smoke that would in the past cause them to have eye infections and to have to change their clothes after cooking. The representative from the Commerce Ministry stated that he will recommend that the fuel should not only have the import duties and taxes removed but that the fuel should be subsidized by the government as is done with Propane and Kerosene. He also noted that since the ethanol can be produced in Haiti using various feedstocks such as sugarcane cassava and corn it should be a priority for the government to help farmers increase the production of these feedstock instead of importing fuels with USD which is increasing the problem of currency devaluation. Several participants noted that if the fuel price were reduced by the elimination of taxes that it would become more popular than charcoal in poor neighborhoods. C.3. Report on consideration of comments received In general, the comments received from the stakeholders present at the meeting were positive. From the stakeholder comments, there is no opposition to the project activity in Haiti. The CPA implementer will ensure that during the purchase of the stoves from their centers, customers are properly trained on the proper use of the ethanol stoves SECTION D. Eligibility of CPA and estimation of emissions reductions D.1. Reference of methodology(ies) and standardized baseline(s) The CPA as part of the PG PoA, will apply the approved small-scale methodologies AMS-I.E Switch from non-renewable biomass for thermal application by the user version 06.0 ( ) Tools applicable The methodology AMS-I.E version 06.0 makes use of the latest version of the following tool: a) Methodological tool Project and leakage emissions from biomass version 02.0 ( ) The CPAs does not utilize any standardized baseline. D.2. Applicability of methodology(ies) and standardized baseline(s) The CPA meets the applicability of the approved methodology AMS-I.E Switch from nonrenewable biomass for thermal application by the user version 06.0 and as justified in the Table below. The methodology is applicable to project activities that displace the use the non-renewable biomass through the introduction a renewable technology. Conformity with the applicability criteria of the methodology is demonstrated as follows: Applicability This methodology comprises of activities to displace the use of non-renewable biomass by introducing renewable energy technologies. Justification The CPA distributes stoves that will displace the use of non-renewable fuel wood (firewood and Version 05.0 Page 11 of 43

12 Examples of these technologies include, but are not limited to biogas stoves, solar cookers, passive solar homes, renewable energy based drinking water treatment technologies (e.g. sand filters followed by solar water disinfection; water boiling using renewable biomass). Project participants are able to show that nonrenewable biomass has been used since 31 December 1989, using survey methods or referring to published literature, official reports or statistics. The methodology is applicable for technologies displacing use of non-renewable biomass by renewable energy The use of this methodology in a project activity under a programme of activities (PoA) is legitimate if the following leakages are estimated and accounted for, if required, on a sample basis using a 90/30 precision for the selection of samples, and accounted for: (a) Use of non-renewable woody biomass saved under the project activity to justify the baseline of other CDM project activities can also be a potential source of leakage. If this leakage assessment quantifies a portion of nonrenewable woody biomass saved under the project activity that is then used as the baseline of other CDM project activities then By is adjusted to account for the quantified leakage; (b) Increase in the use of non-renewable woody biomass outside the project boundary to create non-renewable woody biomass baselines can also be a potential source of leakage. If this leakage assessment quantifies an increase in the use of non-renewable woody biomass outside the project boundary, then By is adjusted to account for the quantified leakage; (c) As an alternative to subparagraphs (a) and (b), By can be multiplied by a net to gross adjustment factor of 0.95 to account for leakages, in which case surveys are not required. CDM-SSC-CPA-DD-FORM charcoal) with stoves that use ethanol fuel, which is a renewable biomass. The project participant will evidence that nonrenewable biomass has been in use since 31 December 1989 using either published literature, official report or statistics. This justification is provided in Appendix 3 The technologies implemented under this CPA will be energy efficient cook stoves that use ethanol fuel which is a renewable biomass that will displace the use of fuel wood, which is a non-renewable biomass used by the baseline stoves. a) Not applicable since option (c) below shall be applied. b) Not applicable since option (c) below shall be applied. c) Applicable since the CPA applies the net to gross adjustment factor to account for leakages as evidenced in the emission reductions spreadsheet This has also been discussed in section D.6.1 below Determination of fnrb The following further conditions apply for the value of fraction of non-renewable (fnrb) applied in a component project activity (CPA) of The CPA applies (b) the use default national values approved by the Board. Version 05.0 Page 12 of 43

13 a PoA. The choice between (a) conduct own studies to determine the local fnrb value and then apply those values in the CPAs; and (b) use default national values approved by the Board; shall be made ex ante. A switch from national value i.e. choice (b) to sub-national values i.e. choice (a) is permitted, under the condition that the selected approach is consistently applied to all CPAs. CDM-SSC-CPA-DD-FORM Applicability for Tool Project and leakage emissions from biomass v02.0 Applicability For project activities which include biomass cultivation: (a) The land in which biomass is cultivated: (i) Does not contain wetlands; (ii) Does not contain organic soils; (iii) Does not contain forests nor contained forest since 31 December 1989; (iv) Is not subjected to flood irrigation. Justification Not applicable. The project does not involve the cultivation of biomass as referred by the methodology i.e. PE BCy but rather purchases ethanol from a third party. (b) Desalination is not a substantial source of water in the host country. D.3. Sources and GHGs In accordance with the approved small-scale methodology AMS-I.E Switch from non-renewable biomass for thermal application by the user version 06.0, the project boundary is the physical, geographical site of the use of biomass or the renewable energy. Cook stoves units distributed under this CPA will be located within the national boundaries of Haiti. The flow diagram below highlights the equipment, systems, emission sources and gases included in the boundary as well as the monitoring parameters in the CPA boundary. Version 05.0 Page 13 of 43

14 CDM-SSC-CPA-DD-FORM CO2 Monitored parameters CO2 nky Nk,0 Q biomass Project stove Three stone fire Baseline Scenario Project Scenario Project Boundary The greenhouse gases and emission sources included in or excluded from the project boundary are shown in the table below. Version 05.0 Page 14 of 43

15 Source Gas Included Justification CDM-SSC-CPA-DD-FORM Baseline Emissions Combustion of nonrenewable biomass for cooking CO 2 CH 4 N 2 O Yes No No Main source of emission under AMS-I.E Not considered as a source of emissions as per AMS-I.E Not considered as a source of emissions as per AMS-I.E Project Emissions Combustion of nonrenewable biomass for cooking CO 2 No Not relevant as per AMS-I.E CH 4 N 2 O No No Not relevant under methodology AMS-I.E Not relevant under methodology AMS-I.E D.4. Description of the baseline scenario In accordance with AMS-I.E version 6.0, it is assumed that in the absence of the project activity, the baseline scenario would be the use of non-renewable biomass for meeting similar thermal energy needs. Therefore, in the baseline scenario of the CPA, CO 2 would have been produced from the combustion of non-renewable biomass for cooking purposes. According to world energy outlook, in developing countries and especially in rural areas, 2.5 billion people rely on biomass, such as firewood, charcoal, agriculture waste and animal dung, for their cooking needs. In these countries, this resources account for over 90% of the household energy consumption. In absence of better policies this demand is projected to increase from 2.6 billion reliance in 2015 to 2.7 billion reliance in This will represent one third of the world population relying on biomass as their source of cooking energy. 9 The use of biomass itself hasn't been indicated as being the main concern but rather its harvesting which has been cited as being done in an unsustainable manner. The use of inefficient technologies for energy conversion purpose has had adverse effects on the population in which it s employed, these effects range from social effects such as health effects, environmental effects to economical development effects. 10 About 4.3 million people die prematurely each year from illnesses attributed to household air pollution caused by the inefficient use of solid fuels 11. Valuable time and effort is devoted to fuel collection instead of education or income generation World Energy Outlook 2006 pg Accessed on 14 March Accessed on 25 Sep on 25 Sep Accessed on 25 Sep 2015 Version 05.0 Page 15 of 43

16 Two complementary approaches have singled out as a remedy to the situation; promoting more efficient and sustainable use of traditional biomass and encouraging people to switch to modern cooking fuels and technologies. 13 The quantity of house energy demand in developing countries in 2004 was about 1090 Mtoe with household biomass in developing countries accounting for almost 70% of the world primary energy demand, the use being primarily on household cooking followed by heating space and water heating. 14 Provision of household energy needs in Haiti is primarily dominated by the use of charcoal and wood. USAID estimates that about 70% of the households energy requirements are met by charcoal and wood. 15 About 89.5% of the population use charcoal or wood as their cooking fuel 16 Consequently, the large dependency on wood fuel is principal driver for deforestation in Haiti, whose forest cover has diminished to about 2% of the total land cover. 17 The reducing forest cover rates puts Haiti at a great disadvantage since it falls below internationally recommended national proportions of 10% by a wide margin. The loss of forest cover not only undermines economic recovery after the devastating effects of natural disasters, but it also aggravates poverty levels in a country that is already very poor. It also increases loss of soil from increased soil erosion, increases flooding and reduces smallholder agricultural productivity, a pillar that supports approximately two thirds of Haitian population. 18 Haiti has the highest rates of deforestation in the world. In the rural areas, it is reported that the main drivers for forest loss are creation of new farmlands, cooking and charcoal production. Charcoal produced is sold in urban areas where it continues to serve as the main source of cooking. As rural farmlands become less productive from soil and environmental degradation, an increase in rural to urban migration is witnessed. Thus, further driving the demand for more charcoal in the urban regions. 19 Added to the environmental concerns, the consumption of charcoal in urban areas exposes the consumers to economic hardships. In Port-au-Prince for instance, USAID found that household charcoal expenditure accounted for about 30% of the total household expenditure. Moreover, the households are increasingly susceptible to price fluctuations driven by natural disaster risks. Reports suggested that after the earthquake strike in 2010, charcoal prices increased due to competing demand for wood for construction. 20 Further to this, combustion of charcoal commonly occurs using inefficient cook stoves that not only consume a lot of wood biomass and further exacerbate deforestation, but the practice also has devastating health implications for the users. Women and children suffer disproportionately since they are the ones who spend time preparing food in smoke-filled environments. For instance, the FAO estimates that approximately 4.3 million people die prematurely every year from illnesses attributed to household air pollution caused by the inefficient use of solid fuels World Energy Outlook 2006 pg Accessed on 14 March USAID, 2010: Assessment of Haiti Alternative Cooking Technologies Programme, page Al-2 16 Fafo; PNUD. Survey of Living Conditions in Haiti Tables and Pages 51 and Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Fuelwood Resources, ESMAP, 2007, Pg Accessed on 12 April Accessed on 12 April USAID, 2010: Assessment of Haiti Alternative Cooking Technologies Programme, page Al Accessed on 25 Sep 2015 Version 05.0 Page 16 of 43

17 An ESMAP study estimates that Haitians use at least 4 million tons of wood annually, 33% of which is transformed into charcoal, mainly for cooking purposes. 22 In Haiti s capital, Port-au-Prince, a USAID commissioned study revealed that approximately 413,000 tons/year of charcoal is consumed among a population of 3.5 million residents and a household size of 4.9. The average urban household interviewed during the study consumes 2.27 kg of charcoal per day while estimates from (ESMAP, 2007) show that rural households consume about 1.5kg of wood per day. It is difficult to determine charcoal usage among rural households due to seasonal variations of its use and the non-standardized measure of its sale i.e. charcoal is often sold in varying measures of quantity. However, estimates place usage at around 2.18kg/day in the rainy season among wealthier households. This situation continues despite Haiti having in place, the Haiti Energy Sector Development Plan Among its many objectives is to; promote alternatives to fuel wood and the promotion of renewable energies. The plan puts in place possible targets but does not directly provide advantage on the introduction and the use of ethanol stoves by households in Haiti In addition the Haiti government policy in place promoting the energy efficient use of charcoal and fuel wood, does not have specific guidelines. 24 Therefore, in line with paragraph 46 of the CDM Project Standard version 09.0, it is assumed that the inefficient use of charcoal and fuel wood will continue in the baseline situation. In this regard, the current situation forms the baseline description. D.5. Demonstration of eligibility for a CPA In accordance with para 208 of the CDM Project Standard version 09.0, the CME is required to consider any specific guidance in applied methodologies regarding the preparation of separate generic CPA-DDs for each different technology/measure, taking into account differences in the means of demonstration of additionality, emission reduction calculations, and monitoring methods. Based on this guidance, the programme will have three CPA types based on the host country of implementation although additional CPA types might be added in future: CPA Type I: Project Gaia Cook Stove Programme Of Activities - CPA000 [Insert identification number] Ethiopia CPA Type II: Project Gaia Cook Stove Programme Of Activities - CPA000 [Insert identification number] Haiti This CPA falls under CPA Type III. The eligibility to be used for the inclusion of the CPA into the PoA has been developed in accordance to the CDM project standard (version 09.0) and Standard for demonstration of additionality, development of eligibility criteria and application of multiple methodologies for Programme of Activities version 04.0 and following General Guidelines for SSC CDM methodologies version 22 while taking into consideration the applied methodologies AMS-I.E version CPA Type III: Project Gaia Cook Stove Programme Of Activities - CPA0004 Haiti No Requirement in PoA Eligibility Criteria Standard 25 Description Documentary Evidence used by CPA to 22 Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Fuelwood Resources, ESMAP, 2007, Pg Haiti Energy Sector Development Plan Haiti Energy Sector Development Plan Standard for demonstration of additionality, development of eligibility criteria and application of multiple methodologies for Programme of Activities Version 05.0 Page 17 of 43

18 16 a. The geographical boundary of the CPA including any time-induced boundary consistent with the geographical boundary set in the PoA 16 b. Conditions that avoid double counting of emission reductions like unique identifications of product and end-user locations (e.g. programme logo) CDM-SSC-CPA-DD-FORM demonstrate compliance (Tick where appropriate) All distributed stoves in GPS Coordinates each CPA are located in Area map or Address the geographic boundary of Haiti Double counting could occur in cases where an individual stove is included in more than one CPA under the same programme or included more than once in the same CPA. Furthermore, double counting can occur if the cook stove is included in another registered single CDM Project Activity or included in another registered PoA For CPA 0004, all the following are fulfilled: Contractual agreements between CME or CPA implementer and the end-user on the transfer of CERs. The end-user agreement will contain among others a statement confirming that the end-user is relinquishing his/her carbon rights to Project Gaia Inc. who is the CME of the programme. 16 c. The specifications of technology/measure including the level and type of service, performance specifications including compliance with testing/certifications; The CPA involves the distribution of energy efficient cook stoves powered by ethanol from molasses a renewable energy source. Agreement between CME and CPA implementer confirming that the CPA has not been registered as a single CDM Project Activity or included in a registered CDM PoA. And, individual programme system/unit is identifiable by: Unique serial numbers that uniquely identify individual units to the programme. End user details (i.e. name, address) in a sales record that shall be electronically backed up. As evidenced by the technical description/manufacturer specifications of the units all the following shall be confirmed: The stoves distributed under this CPA are powered by ethanol, a renewable source. Version 05.0 Page 18 of 43

19 The total or cumulative installed/rated thermal energy generation capacity of the systems/units is equal to or less than 45 MW thermal as evidenced in the emission reduction spreadsheet of the specific CPA 16 d. Conditions to check the start date of the CPA through documentary evidence; CPA Start date shall not be before the start date of the PoA 26 {i.e. 12 February 2015} Confirmation by CPA implementer that each unit (ethanol stove) meets relevant nationally and/or internationally recognized industry standards of quality as evidenced in the technology description/ manufacturer specifications of the project stoves. The start of the CPA is 01/12/2015, the earliest date at which either the implementation or construction or real action begins This shall be evidenced through a signed enduser agreement or a document proving an order placed by the CME or a third party contracted by the CME In case the project has not begun the CME through a letter shall confirm the date is not to before the PoA start date: It is the date for which the first stove was distributed to the end user as evidenced by a signed end-user agreement. Or It is the date in which the order for the stoves was placed by the CME or by a third party contracted by the CME 26 Start date of PoA is defined as the date when notification on Prior Consideration was sent to the UNFCCC Secretariat. Version 05.0 Page 19 of 43

20 Whichever of the two dates shall be the earliest and applicable 16 e. Conditions that ensure compliance with applicability and other requirements of single or multiple methodologies applied by CPAs 16 f. The conditions that ensure that CPAs meet the requirements pertaining to the demonstration of additionality as specified in Section A above; The CPA has confirmed its compliance among other requirements, with the applicability of AMS-I.E version 6.0 and the respective tools referenced by the methodologies; specifically the methodological tool Project and leakage emissions from biomass; version 02.0 in section D.2 of the CDM- SSC-CPA-DD-FORM. In line with paragraph 11 of the Methodological tool: Demonstration of additionality of small-scale project activities Version 10.0, documentation of barrier is not required for the positive list of technologies and project activity types that are defined as automatically additional for project sizes up to and including the small-scale CDM thresholds (e.g. installed capacity up to 15 MW). The start date of the CPA is not before the PoA start date as evidenced by a letter from the CME Compliance with applicability of AMS-I.E met in section D.2 of specific CPA-DD Compliance with applicability of the methodological tool Project and leakage emissions from biomass version 02.0 met in section D.2 of specific CPA-DD As documented in section A.5 of the specific CPA- DD, the CPA is implemented in: Households As evidenced by the technical specification of the cook stoves, and the cumulative number of units distributed under the CPA as explained on the threshold calculation in the emission reduction spread sheet of the CPA: Distribution of cook stoves Have a cumulative to households/ capacity not exceeding communities/smes form 45 MWth. This will be part of the positive list in accordance with para. 11(c) which states that: evidenced in the emission reduction spreadsheet of the specific CPA. Project activities solely composed of isolated units where the users of the Have a capacity of less than 5% of the smallscale technology/measure are threshold as households or communities evidenced by the or Small and Medium manufacturers Enterprises (SMEs) and specifications of the cook where the size of each unit stoves and also in the is no larger than 5% of the emission reduction small-scale CDM spread sheet. thresholds 16 g. The PoA-specific The PoA shall undergo The Local Stakeholder Version 05.0 Page 20 of 43

21 requirements stipulated by the CME including any conditions related to undertaking local stakeholder consultations and environmental impact analysis; Local Stakeholder Consultations and Environmental Impact Assessment where required. CDM-SSC-CPA-DD-FORM Consultation is undertaken at CPA level. Evidence is provided on the CPA-DD section C on how the Local Stakeholder Consultation was conducted and a summary of the comments received has been included. As evidenced by host country regulations, does the Host Country require an EIA? Yes No If Yes, has the CPA carried out an EIA? Yes No 16 h. Conditions to provide an affirmation that funding from Annex I parties, if any, does not result in a diversion of official development assistance; 16 i. Where applicable, target group (e.g. domestic/commercial/industri al, rural/urban, gridconnected/off-grid) and distribution mechanisms (e.g. direct installation); If the CPA has not received any public funding from an Annex I country, it shall confirm so by providing a written confirmation letter. If a CPA has received any public funding from an Annex I country, it shall seek a confirmation letter from the Annex I country or any related agencies that states that the funding will not lead to a diversion of Official Development Assistance. In section A.7 of the CPA- DD, the CPA has already demonstrated that the CPA is implemented within the geographical boundaries of Haiti. The CPA will further demonstrate the target group in section A.5 of the The CPA shall prove compliance through one of the two conditions: Through a signed confirmation letter, the CPA has proven that it has not received any public funding from an Annex I country. Yes No The CPA has received public funding from an Annex I country. Through a letter from the Annex I country, or any related agencies, the CPA has confirmed that the funding will not result in diversion of Official Development Assistance. Yes No As documented in section A.5 of the CPA-DD, the CPA is implemented in: Households Version 05.0 Page 21 of 43

22 16 j Where applicable, the conditions related to sampling requirements for the PoA in accordance with the Standard for sampling and surveys for CDM project activities and programme of activities ; 16 k. Where applicable, the conditions that ensure that every CPA in aggregate meets the small- scale or microscale threshold criteria and remains within those thresholds throughout the crediting period of the CPA; CDM-SSC-CPA-DD-FORM CPA-DD. Sampling will be carried out As evidenced in section in line with the Standard D.7.2 of the CPA-DD, the for sampling and surveys CPA has established for CDM project activities sampling procedures that and programme of activities are in line with the CDM version 05.0 and latest requirements Guidelines for Sampling and surveys for CDM Yes No project activities and programmes of activities The cumulative number of As evidenced by the units distributed under each rated capacity of each CPA will not exceed 45 cook stove and the MWth. calculated maximum number of cook stoves that can be included in a single CPA as provided in the emission reduction spread sheet, the total cook stove units distributed under the CPA: 16 l. Where applicable, the requirements for the debundling check, in case CPAs belong to small-scale (SSC) or microscale project categories. In accordance with the methodological tool: Assessment of debundling for small-scale project activities version 04.0, paragraph 17, if each of the independent subsystems/measures (e.g. biogas digester, solar home system) included in the CPA of a PoA is no larger that 1% of the small scale thresholds defined in the methodology applied, then that CPA is exempted from performing a de-bundling check i.e. considering as not being a de-bundled component of a large scale activity. The CPA has already demonstrated in eligibility criteria 16i that it comprises of distribution of energy efficient cook stoves powered by a renewable source to multiple locations (households). The CPA will therefore have to meet the Have a cumulative capacity not exceeding 45 MWth As evidenced by the technical description/manufacturer specification of the cook stoves, each independent unit (cook stove): Has a rated capacity not exceeding 450 kwth Version 05.0 Page 22 of 43

23 following additional eligibility criteria in order to be exempted from performing a de-bundling check. D.6. Estimation of emission reductions D.6.1. Explanation of methodological choices The CPA will utilize methodology AMS-I.E Switch from non-renewable biomass for thermal application by the user version 06.0 to estimate the emission reductions achieved by ethanol stoves distributed under the CPA. The choice of the methodology is appropriate because in the absence of the project activity, the use of non-renewable biomass for cooking will continue and the project aims at displacing the use of non-renewable biomass by introduction of stoves that use renewable biomass for cooking. Eligibility of application of the methodology has been demonstrated in section D.2 above. For ex-ante estimation of emission reductions, the following steps will be used in line with the methodology: Baseline emissions Equation 1 of the methodology will be used to estimate the emission reductions Equation (1) Where: ER y = Emission reductions during the year y in tco2e B y = Quantity of woody biomass that is substituted or displaced in tonnes f NRB,y = Fraction of woody biomass used in the absence of the project activity in year y that can be established as non-renewable biomass using survey methods or government data or approved default country specific fraction of non-renewable woody biomass (fnrb) values available on the CDM website NCV biomass,i = Net calorific value of the non-renewable woody biomass that is substituted (IPCC default for wood fuel, TJ/tonne) EF projected_fossil fuel = Emission factor for the substitution of non-renewable woody biomass by similar consumers. Use a value of 81.6 t CO2/TJ PE BC,y = Project emissions due to cultivation of biomass Determination of B y In accordance with paragraph 12 of AMS-I.E version 06.0, the CPA will determine B y using option (a) which is explained below: (a) Calculated as the product of the number of appliances multiplied by the estimate of average annual consumption of woody biomass per appliance (tonnes/year); This can be derived from historical data or estimated using survey methods; Version 05.0 Page 23 of 43

24 B y will be determined using the following equation: CDM-SSC-CPA-DD-FORM Where: B y Quantity of woody biomass that is substituted or displaced per appliance/household in tonnes per year Q biomass Average annual consumption of woody biomass per appliance/household. N k,0 Number of cook stoves distributed by the CPA in year 1 Determination of f NRB, y The CPA will determine determine the fraction of non-renewable biomass government data or values from the CDM website. f, using surveys, NRB y Project emissions (PE BC,y ) No project emission will be accounted for since the project does not involve cultivation of biomass but rather sources biomass from third parties. Leakage The CPA will consider the following potential source of leakage in the estimation of emission reductions: 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. If this leakage assessment quantifies an increase in the use of non- renewable woody biomass used by the non-project households/users that is attributable to the project activity then B y is adjusted to account for the quantified leakage. B y shall be multiplied by a net to gross adjustment factor of 0.95 to account for leakages,. In accordance with paragraph 20 of the methodology, the general guidance on leakage in biomass project activities should be followed to quantify leakages pertaining to the use of biomass residues. This project does not make use of biomass residues hence this leakage source shall be neglected. Net Emission reductions are calculated as follows: Net Emission Reductions = Emission Reductions per cook stove* Number of appliances - Leakage from biomass residues - PE BC,y D.6.2. Data and parameters fixed ex-ante Data / Parameter f NRB Unit % Description Fraction of non-renewable biomass Source of data The data is sourced from CDM Website and approved by the country s DNA ( Value(s) applied 96% Version 05.0 Page 24 of 43

25 Choice of data or Measurement methods and procedures Purpose of data CDM-SSC-CPA-DD-FORM As recommended by the methodology the project can use establish fnrb using survey methods or government data or approved default country specific fraction of non-renewable woody biomass (fnrb) values available on the CDM website Calculation of baseline emissions Additional comment - D.6.3. Ex-ante calculation of emission reductions The ex-ante emission reductions estimates will be based on methodology AMS-I.E Switch from non-renewable biomass for thermal application by the user version 06.0 Emission Reductions from the use of non-renewable biomass Application of AMS-I.E Emission reductions from the use of non-renewable biomass are estimated using AMS-I.E version 06.0 Baseline emissions Equation 1 of the methodology will be used to estimate the baseline emissions Equation (1) Where Parameter Description Value SI Unit Source ER y Emission reduction per appliance during the 3.76 tco 2 eq Calculated year y B y Quantity of woody biomass that is substituted or 3.2 tonnes/yr Calculated displaced per appliance/ household in tonnes f NRB,y Fraction of non-renewable biomass used in the absence of the project activity in year y that can be established as non-renewable biomass using survey methods or government data or approved default country specific fraction of non-renewable woody biomass (f NRB ) values available on the CDM website 96% Percentage CDM Website NCV biomass,i Net calorific value of the non-renewable TJ/tonne Methodological biomass that is substituted default EF projected_fossil_fuel,y Emission factor for the substitution of nonrenewable woody biomass by similar tco2/tj Methodology default PE BC,y Project emission due to cultivation of biomass 0 tco2eq Calculated Determination of B y In accordance with paragraph 12 of AMS-I.E version 06.0, the CPA will determine B y using option (a) which is explained below: Version 05.0 Page 25 of 43

26 (a) CDM-SSC-CPA-DD-FORM Calculated as the product of the number of appliances multiplied by the estimate of average annual consumption of woody biomass per appliance (tonnes/year); This can be derived from historical data or estimated using survey methods; In accordance with the methodology guidelines, B y has been derived from a survey conducted and documented in the (ESMAP, 2007). Further information is provided in section D.4 of the CPA-DD. Project emissions (PE BC,y ) No project emissions will be accounted for, as the project does not involve the cultivation of biomass but rather sources biomass form third parties. Thus: PE BC,y =0 Leakage Leakage shall be accounted for by multiplying B y with a net gross factor of 0.95 for the use/diversion of non-renewable woody biomass saved under the project activity by non-project household/users that previously used renewable energy sources. This is the same as discounting the resulting emission reduction per appliance by a factor of 0.95 as follows: 3.76*0.95 = 3.57 t CO 2 e Since the project will not utilize biomass residues but shall use non-woody biomass as defined in EB 23 Annex 18, leakage emissions described in par 20 of the methodology shall not be applicable. Net emission Reductions for year one of operation is calculated as follows: Net Emission Reductions = (Emission Reductions per cook stove* Number of appliances) Leakage from biomass residues * = 2856 t CO 2 e The above is a demonstration of emission reduction calculations, taking into account the number of stoves distributed in year one of the operation. However, actual ex-ante calculation of emission reductions applied to the CPA adopts a more conservative approach by discounting the number of lamps that remain operational each year subsequent to the year of distribution. This calculation is documented in the emission reduction spread sheet. D.6.4. Summary of the ex-ante estimates of emission reductions Year Baseline emissions (t CO 2 e) Project emissions (t CO 2 e) Leakage (t CO 2 e) , , , , , , , , , , , , , ,313 Total 419, ,889 Total number of 7 crediting years Emission reductions (t CO 2 e) Version 05.0 Page 26 of 43

27 Annual average over the crediting period CDM-SSC-CPA-DD-FORM 59, ,984 D.7. Application of the monitoring methodology and description of the monitoring plan The application of the monitoring methodology and description of the monitoring plan are provided in section D.7.1 and D.7.2 below. D.7.1. Data and parameters to be monitored Data / Parameter Q biomass Unit tonnes/yr Description Average annual consumption of woody biomass per appliance Source of data To be determined ex-post during monitoring for ex-ante purposes data from credible literature shall be used. See emission reduction for further details. Value(s) applied 3.20 Measurement methods and procedures The methodology provides that the data is sourced either from historical data or estimated using survey methods. For the purpose of ex-ante emission reduction calculation this data will be sourced from credible literature For ex-post determination, this parameter will be measured through surveys carried out during the monitoring period. Interviews will be carried out on the selected households to be surveyed. The surveys will satisfy 90/10 confidence precision level when done annually and 95/10 when carried out biennially. The CME or third party contracted to carry out the survey will visit the households that possess the selected stoves. Through interviewing the stove end-users the surveying entity will capture the amount of ethanol that the end-user consumes per day or per week. This value shall be extrapolated for the whole year for the sampled end-users. This value shall be converted to woody biomass by comparing the thermal energy generated by ethanol to the quantity of wood required to provide the same amount of energy taking into account the NCV of ethanol and woody biomass. A mean will be derived from it and be used for ex-post emission reductions. The interviews will only be carried out in households that the project stove is found to be in operation. Monitoring frequency QA/QC procedures Annually or Biennial The data collected shall be transferred from the surveying entity to the CME in cases where its not the CME carrying out the survey. The data shall be checked for any inconsistency that might lead to biased results and rectified. Depending on the frequency of monitoring the sample results will be required to attain a set precision. In case the required precision is not attained then the surveying entity will apply the reliability procedures described under the monitoring plan. When biennial inspection is chosen, a 95% confidence interval and 10% margin of error requirement shall be achieved for the sampling parameter on other hand, when the project proponent chooses to inspect annually, a 90% confidence interval and 10% margin of error requirement shall be achieved for the sampling parameter. In the case where the confidence precision level is not reached oversampling will be carried out to achieve this from a buffer sample that will have been calculated during sample drawing otherwise the lower bound of a 90 per cent or 95 per cent confidence interval of the parameter value may be chosen as alternative to repeating the survey efforts. Version 05.0 Page 27 of 43

28 Purpose of data Additional comment Calculation of baseline emissions CDM-SSC-CPA-DD-FORM For the purpose of ex-ante emissions literature value will be used. However for the purpose of ex-post emission reductions the amount of renewable biomass will be monitored and that is what will be used for the estimation of ex-post emission reductions Data / Parameter N k,0 Unit Number Description Number of thermal applications k commissioned Source of data Records of installation date of each system Value(s) applied Please refer to ER spread sheet for the distribution plan Measurement methods and procedures Monitoring frequency QA/QC procedures Purpose of data Additional comment At the time of installation all project activity systems, proper operation of the cook stoves shall be confirmed and evidenced through a signed delivery note between the end-user and the CPA Implementing Entity. The records will be archived in project data base which will capture the following: The customer address Sales date of the stove Phone number if applicable Stoves serial number The baseline stoves Continuous The serial numbers of the stoves captured in the distribution will be counter checked with the serial number of the stoves from the batch to make sure that the serial number is well captured, Calculation of baseline emissions This parameter is used to calculate the parameter B y (the quantity of woody biomass that is substituted or displaced in tonnes). Data / Parameter Unit Description Source of data Value(s) applied Measurement methods and procedures n k,y Fraction Proportion of N k,0 that remain operating at year y Stove inspections to determine if they are still operational through sampling annually or biennially Please refer to the ER spread sheet The parameter shall be measured by way of sampling where a statistically valid sample size shall be calculated based on 95/10 or 90/10 confidence precision level following the Standard for sampling and surveys for CDM project activities and programme of activities The CME or third party contracted to carry out the survey will visit the households in which the selected stoves are located and will confirm their operation through visual inspections of the stoves. The proportion of stoves that are still operating shall be determined by relating the stoves operating to the stoves surveyed Monitoring frequency QA/QC procedures When sampling is done on annual basis for parameter n k,y the survey will meet 90/10 confidence precision level and 95/10 confidence precision level shall be chosen, when surveys are done biennially. At least once every two years (biennial) during the crediting period or annually The data collected shall be transferred from the surveying entity to the CME in cases where it is not the CME carrying out the survey. The data shall be checked for any inconsistency that might lead to biased results and rectified. Depending on the frequency of monitoring the sample results will be required to attain a set precision. In case the required precision is not attained then the surveying entity will apply the reliability procedures described under the Version 05.0 Page 28 of 43

29 monitoring plan. CDM-SSC-CPA-DD-FORM Purpose of data Additional comment When biennial inspection is chosen, a 95% confidence interval and 10% margin of error requirement shall be achieved for the sampling parameter on other hand, when the project proponent chooses to inspect annually, a 90% confidence interval and 10% margin of error requirement shall be achieved for the sampling parameter. In the case where the confidence precision level is not reached oversampling will be carried out to achieve this from a buffer sample that will have been calculated during sample drawing Calculation of baseline emissions This parameter is used to calculate the parameter By (the quantity of woody biomass that is substituted or displaced in tonnes). D.7.2. Description of the monitoring plan Operational and management structure The overall responsibility for monitoring of the Project Gaia Cook Stove Programme of Activities will rest with Project Gaia Inc. as the CME.The CME will ensure that each CPA is implemented and monitored as described in the PoA-DD and CPA-DD. In order to achieve this, the CME will enter into a contractual agreement with each CPA implementing entity prior to the CPA inclusion into the PoA. The contract will outline the roles and responsibilities of the CME and CPA Implementing Entity in order to ensure a smooth implementation and monitoring of the CPA. Third Party entities will also be outsourced to facilitate the monitoring of the CPA if need be and they will also get into a contract with the CME An overview of the organization of the monitoring process is as follows: Responsibilities of the CME Once a DOE has approved the inclusion of a CPA and the project activity has begun operations, the CME will take charge of the following: Receiving and compiling monitoring records from the CPA implementing entity Archiving and keeping monitored data for two years after the end of the crediting period or the last issuance of CERs, whichever occurs later. Coordinating monitoring activities and data management during the lifetime of the PoA. Version 05.0 Page 29 of 43

30 Contracting a DOE for validation and verification purposes. Preparing and submitting monitoring reports and facilitating the verification of the same. Acting as the focal point with the CDM Executive Board for matters related to the PoA. During the lifetime of the PoA, maintaining all monitoring reports of all CPAs. Provide training as required to the CPA implementer s staff that will work on the monitoring of parameters relevant to the emission reduction assessment of the CPA. Carrying out monitoring surveys. The CME can opt to contract a third party entity to conduct the monitoring surveys it on its behalf. The CME will further be responsible for ensuring that the CPA Implementer understands the requirements of the monitoring plan. The CME Programme Manager/Officer in charge will maintain regular communication with the CPA Implementer s staff. CPA monitoring training Before the implementation of the CPA or the start of the CPA crediting period, the CME will provide training and guidance regarding the implementation of the CPA monitoring plan to the CPA Implementer s staff. The training will include the following components: CDM Project Cycle and the significance of monitoring Management structure and work scope Components of the monitoring plan QA/QC procedures Monitoring report template Preparation for verification Questions and answers The CME will ensure that the training materials provided to the CPA Implementer for monitoring will be regularly updated in line with changes to the CDM or PoA requirements. The relevant Programme Manager/Officer will responsible for updating the training materials. The CME will maintain an electronic database that will incorporate the monitored parameters and values required in emission reduction calculations for each CPA, as well as other relevant information. The database will ensure that monitored data is kept and archived for two years after the end of the crediting period or the last issuance of CERs, whichever occurs later. Responsibilities of the CPA implementer CPA Implementers will be responsible for the implementation of individual CPAs under the PoA and will also be in charge of: Operations and maintenance of the CPA for the duration of the project. Record keeping of sales made as per the monitoring plan and provide hard and electronic records to the CME on a regular basis. Make available staff for any training conducted by the CME on monitoring approaches and systems. Make staff available for validation and verification where applicable. Provide the DOE with required documents and access to sites as needed. More specifically, the CPA implementer will be responsible for the technical aspects related to monitoring activities such as: Employment and training of personnel responsible for gathering and recording monitoring data of the sales. Continuous record keeping of the number of cook stoves and the dates when they were distributed to end-users. Version 05.0 Page 30 of 43

31 Ensure that the stoves are in good working condition before the transfer of ownership is made to the end-users. Ensure that the end-users are well trained on the proper operation of the cook stoves before the transfer of ownership is made. This might be in the form of user manuals, oneon-one training sessions or any other appropriate methods. Ensure that the end users are well aware of the emergency procedures and the contact persons in case of such emergencies. This might be in the form of user manuals, warranty cards or any other appropriate methods. Continuous record keeping of the number and date when cook stoves have been replaced or serviced. If the CPA implementing entity will also distribute fuel to be used to the end-users, ensure continuous recording of the amounts of fuel distributed. Incase the CPA implementing entity does not distribute fuel to end-users, the CPA in liaison with the CME will estimate the amounts of fuel distributed to end-users through an appropriate sampling method as further described in the sampling plan. Contracting a survey company where needed Electronic archiving of all monitored data and parameters in form of sales records. Submission of monitoring data to the CME on a regular basis. As such, the CPA implementer will appoint a monitoring officer who will be in charge of the CPA s monitoring responsibilities as described above. The records will be crosschecked for consistency by another employee of the CPA who is not directly in charge of data recording and finally approved by the director of the CPA. The CPA implementer will thereafter submit on a regular basis, the monitored records to the CME accompanied by the respective copy of records/invoices for sold units as evidence. Data and parameters to be monitored The following data and parameters will be monitored as required by the methodology AMS-I.E 27 Parameter Description Monitoring / recording frequency Q biomass The net quantity of renewable At least once every two years. biomass consumed by the (biennial) during the crediting period) thermal application k in year y N k,0 n k,y Sampling Plan Number of thermal applications k commissioned Proportion of Nk,0 that remain operating at year y (fraction) At the time of installation the installation date of each system shall be recorded as soon as it is sold. At least once every two years (biennial) during the crediting period In accordance to the applied methodology, AMS.I.E ver 6.0, a statistically valid sample of the locations where the systems are deployed, with consideration, in the sampling design, of occupancy and demographic differences can be used to determine parameter values used to determine emission reductions, as per the relevant requirements for sampling in the Standard for sampling and surveys for CDM project activities and programme of activities. When biennial inspection is chosen a 95 per cent confidence interval and a 10 per cent margin of error requirement shall be achieved for the sampling parameter. On the other hand when the project proponent chooses to inspect annually or the methodology dictates so, a 90 per cent confidence interval and a 10 per cent margin of error requirement shall be achieved for the sampled parameters. 27 Monitoring will only account for one stove per household; in the case where a household is found to have more than one project stove then only one stove shall be accounted for. Version 05.0 Page 31 of 43

32 In cases where survey results indicate that 90/10 precision or 95/10 precision is not achieved, the lower bound of a 90 per cent or 95 per cent confidence interval of the parameter value may be chosen as an alternative to repeating the survey efforts to achieve the 90/10 or 95/10 precision or rather discounting the emission reductions by not less than 3 times the percentage of missed precision during the first two years of the crediting period of the CPA as outlined and recommended by the Standard for Sampling and surveys for CDM project activities and programme of activities ver 05.0 paragraph 17 Methodology AMS-I.E ver 6.0 specifically requires that: Monitoring shall consist of checking of all appliances or a representative sample thereof, at least once every two years (biennial) to ensure that they are still operating or are replaced by an equivalent in service appliance. Repairs or replacements made shall be captured in a hard book for reference purposes Monitoring should confirm the displacement or substitution of the non-renewable woody biomass at each location. In the case of appliances switching to renewable biomass the quantity of renewable biomass used shall be monitored. For this, project proponents may apply the Standard for sampling and surveys for CDM project activities and programme of activities. Parameters to be sampled in accordance with the methodology AMS-I.E are provided in the table below: Parameter n k,y Q biomass Description Proportion of distributed units that remain operational at least once in two years. The net quantity of renewable biomass consumed by the thermal application k in year y Sampling design Sampling design shall be based on the applied methodology and the nature of the sampled parameter (i) Objectives and Reliability Requirements The objective of the sampling effort will be to assess the number of distributed units that are still in operation and the amount of renewable biomass used by the appliances. The sample size results will meet either 90 per cent confidence and 10 per cent precision level when monitoring is carried out annually and a 95 per cent confidence and 10 per cent precision level when monitoring is done once in two years as described under methodology AMS-I.E. The parameters to be sampled are as shown below together with the confidence precision level target Parameter Descriptions Confidence/precision n k,y Proportion of distributed units that remain operational at least once in two years. Annually 90/10 Biennial Q biomass ii) Target Population The net quantity of renewable biomass consumed by the thermal application k in year y 95/10 Annually 90/10 Biennial 95/10 The target population will be households in which the cook stoves have been distributed as identified by the CME sales records. Version 05.0 Page 32 of 43

33 (iii) Sampling method CDM-SSC-CPA-DD-FORM The PoA will employ simple random sampling method, as the population targeted is homogeneous in nature based on the following Technology implemented: The CPA will involve the distribution of cook stoves of the same technology and specification in terms of fuel used and efficiency of the stoves as specified by the manufacturer End-users: The end-users to whom the stoves will be distributed will be similar in nature; that is they will be households that prior to the project stove acquisition used fuel wood stoves. Boundary covered by the stoves: Stoves distributed will be within the confinement of the CPA boundary as defined in the project boundary. Sampling will be done on single CPA basis and can be carried out across CPAs as long as homogeneity of the CPAs is established based on the above criteria. For the latter case a 95/10 confidence precision level shall be applied in line with paragraph 21 of the Standard for sampling and surveys for CDM project activities and programme of activities version A sample will be selected from population contained in a specific CPA based on calculation procedures indicated in the guidelines of sampling and surveys and through application of a random number generator. The selected stoves location will be visited by the CME or a third party hired to carry out the survey. Each stove will be uniquely identified through its serial number. The survey of the monitored parameters will involve the following Parameter n k,y Q biomass Process of carrying out the survey The CME or third party contracted to carry out the survey will visit the households in which the appliances have been distributed and through visual inspections of the stoves the proportion of stoves that are still operating shall be determined. This will be done through dividing the number valid stoves sample surveyed to those found still in operation. The CME or third party contracted to carry out the survey will visit the households that have the selected stoves from the sample size calculated. Through interviewing the end-user of the stove the surveying entity will capture the amount of ethanol that the end-user consumes per day or per week. This value shall be extrapolated for the whole year for the sampled end-users and a mean derived out of it to be used for ex-post emission reductions. The interviews will only be carried out in households that the project stove is found to be in operation In order to make sure that reliability is met, oversampling of 30% will be carried out on the initial calculated sample size to cater for non-response. The oversampling has been chosen based on similar projects. A buffer list will also be created which will include the stoves to be chosen incase the reliability is not met on the first survey exercise. The buffer will be at least 10% of the calculated sample size of the parameter. The use of buffer in meeting the reliability of the sample will be carried out in stages. Where 10% will first be drawn as additional stoves to be monitored followed by another 10% then if need be another 10%. The CME will draw samples from each CPA iv) Sample size calculation The formula to be used for calculation of the sample size will depend on the type of parameter being sampled i.e. whether the parameter is a proportion/percentage parameter or if the parameter of interest is a mean. Sample size calculation for n k,y Version 05.0 Page 33 of 43

34 Calculation for n k,y will be calculated following equation (1) paragraph 15 of appendix 2 of the Guidelines: sampling and surveys for CDM Project Activities and Programme of Activities version 04.0 Where: n Sample size N Total population p ) Expected proportion of cook stoves that are still in operation 1.96 Represents 95% confidence required when biennial survey is chosen. When annual survey is selected will be the value used for sample size calculation as shown on sample size calculation spreadsheet. p 0.1 Represents 10% precision level on both sides of ) Required data for calculation of the sample size Parameter N p ) Source Sales records of stoves that have been sold determined per CPA distribution Based on developers own experience or from similar CDM projects For ex-ante estimation the following data shall be used for calculation of expected sample size for n k,y Data Value Source N 20,000 Based on the number of stoves expected to be distributed until the first date of monitoring p ) 65% Based on similar CDM cook stoves projects n 205 Calculated Oversampled size of 267 Calculated 30% If the calculation of the sample size returns a value of less than 30 then the surveyor will apply a sample size of 30 as recommended by the Standard Sampling and surveys for CDM project activities and programme of activities version 05.0 Sample size calculation for Q biomass Q biomass being a mean parameter the sample size calculation will be based on equation (4) par 27 of appendix 2 of the Guidelines: sampling and surveys for CDM Project Activities and Programme of Activities version 04.0 Where: Version 05.0 Page 34 of 43

35 n Sample size 28 N Total number of population V Variance SD Expected standard deviation 0.1 Precision 1.96 Represents the 95% confidence required when biennial survey is chosen. When annual survey is selected will be value used for sample size calculation as shown on sample size calculation spreadsheet. Mean Expected mean Required data for calculation of the sample size Parameter N SD Mean Source CME sales records Based on project proponent experience Based on project proponent experience For ex-ante estimation the following data shall be used for calculation of expected sample size for Q biomass Data Value Source N 20,000 Based on the number of stoves expected to be distributed until the date of first monitoring SD 0.30 Conservatively estimated Mean 1.20 Estimated based on project proponent experience Sample size n 27 Calculated Oversampling n 35 Calculated If the calculation of the sample size returns a value of less than 30 then the surveyor will apply student t-distribution since the parameter of interest is a mean as recommended by the Standard Sampling and surveys for CDM project activities and programme of activities version 05.0 The sample size of this parameter shall be calculated based on the type of stove i.e. single burner or double burner Reliability for sampling results Depending on the monitoring frequency the sample size will be expected to reach either 90/10 confidence precision level for annual monitoring or 95/10 for the case of biennial monitoring. In case the sample will not attain the required precision the following options shall be used depending on which is appropriate as recommended by Standard Sampling and surveys for CDM project activities and programme of activities version a) Perform additional data collection that is a supplemental or new sample to reach the required precision level; or b) Apply a correction to the estimates using the options below: (i) Discounting the emission reduction estimates by either, a. Taking the lower or the upper bound, whatever is conservative, of the 90 or 95 per cent confidence interval, depending on the type of methodologies applied; or b. Discounting by no less than three times (x3) the percentage precision points missed (e.g. if the attained precision is 90/11 then the emission reduction estimates are discounted by 3 per cent) (ii) Using a conservative default value included in the applied methodologies 28 The Sample Sizes shall be drawn separately based on the type of stoves that were distributed i.e either single burner or double burner stoves as captured in the sales record. Version 05.0 Page 35 of 43

36 The option (b) above will only eligible for application to the survey undertaken during the first two years of the crediting period of the project activity or CPAs (if sampling is undertaken at the PoA level the two-year limit applies from the start date of crediting to the PoA) and when the attained precision from the actual samples is equal to or better than 90/15 for small-scale project activities. Sampling frame The PoA will be composed of different sampling frames based on the characteristics of the CPAs and the host country of CPA implementation. At minimal the CME will classify the sampling frame based on the below characteristics: Country: Since the PoA is envisaged to include CPAs from different countries the sampling frame will start to be identified at the country level in that CPAs will be differentiated by country End User: Among the eligibility criteria of the PoA is the end-users who in this case will be households. This will form the next differentiation of the sampling frame. Stove type: The stoves can sufficiently be classified as homogenous due to having similar characteristic that is use of similar fuel, having the same efficiency and with the only difference of double burner and single burner stoves, which does not necessarily affect the end-user usage characteristics. A naming system will be developed to identify the different sampling frame based on the above. Identification of a sampling frame: Category Country Country B Country D End users Househol ds Househol ds Stove type Single burner stove Double burner stoves Double burner stove Single burner stove Sample Frame CBHH/SB CB-HH/DB CD-HH/DB CD-HH/SB The sampling frames are not fixed and may be altered from time to time by the CME in order to fit the characteristics of the CPA at hand. Version 05.0 Page 36 of 43