CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAM ACTIVITY DESIGN DOCUMENT FORM (CDM-SSC-CPA-DD) Version 01 CONTENTS

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1 CDM Executive Board page 1 CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAM ACTIVITY DESIGN DOCUMENT FORM (CDM-SSC-CPA-DD) Version 01 CONTENTS A. General description of CDM programme activity (CPA) B. Eligibility of CPA and Estimation of Emission Reductions C. Environmental Analysis D. Stakeholder comments Annexes Annex 1: Contact information on entity/individual responsible for the CPA Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan NOTE: (i) This form is for submission of CPAs that apply a small scale approved methodology using the provision of the proposed small scale CDM PoA. (ii) The coordinating/managing entity shall prepare a CDM Small Scale Programme Activity Design Document (CDM-SSC-CPA-DD) 1,2 that is specified to the proposed PoA by using the provisions stated in the SSC PoA DD. At the time of requesting registration the SSC PoA DD must be accompanied by a CDM-SSC CPA-DD form that has been specified for the proposed SSC PoA, as well as by one completed CDM-SSC CPA-DD (using a real case). After the first CPA, every CPA that is added over time to the SSC PoA must submit a completed CDM-SSC CPA-DD. 1 The latest version of the template form CDM-CPA-DD is available on the UNFCCC CDM web site in the reference/document section. 2 At the time of requesting validation/registration, the coordinating managing entity is required to submit a completed CDM-POA-DD, the PoA specific CDM-CPA-DD, as well as one of such CDM-CPA-DD completed (using a real case).

2 CDM Executive Board page 2 SECTION A. General description of small scale CDM programme activity (CPA) A.1. Title of the small-scale CPA: Promotion of the Improved Cooking Stove (ICS) Nepal CPA 1 Version: 01 Date: 29/09/2011 A.2. Description of the small-scale CPA: The CDM Program Activity This CDM Program Activity (CPA) is part of the Promotion of the Improved Cooking Stove (ICS) Nepal -Programme of Activity (PoA). This CPA includes 5,645 3 Improved Cooking Stoves (ICS) which were installed between 01 April 2011 and 30 June The Table 1 below provides an overview of the ICS according to their the regions and district Table 1: ICS listed in this CPA 1 Region Type of ICS District Number of ICS Terai Mud Improved Cooking Stove Bara 392 Jhapa 479 Kailali 822 Kanchanpur 82 Kapilvastu 727 Parsa 251 Rautahat 1,153 Rupandehi 477 Siraha 215 Sunsari 334 Sub Total 4,932 High Hills Metallic Improved Cooking Stove Baglung 63 Dolakha 68 Jumla 141 Kaski 1 Kathmandu 17 Kavre 7 Lamjung 17 Mugu 38 Mustang 56 Myagdi 50 Okhaldhunga 2 Ramechap 15 Rasuwa 14 3 The number of ICS to be included in this CPA and also their period of construction of ICS will be revised based on the start date of the validation.

3 CDM Executive Board page 3 Region Type of ICS District Number of ICS Rolpa 52 Sindhuli 8 Sndhupalchowk 164 Sub Total 713 Total 5,645 A complete list of all ICS included in this CPA can be found in Annex 5. The eligibility criterion for inclusion of CPA1 in the PoA is elaborated in B.2. A.3. Entity/individual responsible for the small-scale CPA: The individuals responsible for the ICS are the individual owners of the ICS. These are listed in Annex 5. The coordinating or managing entity (CME) of the Promotion of the Improved Cooking Stove (ICS) Nepal PoA is the Alternative Energy Promotion Centre (AEPC). AEPC has been selected as CME since it distributes funding provided by the government over different renewable energy programs, placing it in a good position to manage the carbon revenues to the benefit of the Biomass Energy Support Program (BESP). AEPC is responsible for overall coordination and the implementation of the Promotion of the Improved Cooking Stove (ICS) Nepal CPAs. The owners of a ICS signs a covenant for BESP in which they state that The ICS owner transfer all legal rights, interests, credits, entitlements, benefits or allowances arising from or in connection with any greenhouse gas emissions reductions arising from the operation of the ICS (Emission Reduction), and agrees to take all necessary action required to ensure the transfer of those Emission Reductions to the Alternative Energy Promotion Centre or its nominee, including executing any relevant documents. A.4. Technical description of the small-scale CPA: A.4.1. Identification of the small-scale CPA: The unique identification number of the CPA is CPA1: Promotion of the Improved Cooking Stove (ICS) Nepal PoA. Annex 5 contains a list of 5,645 ICS covered by CPA1, including information on unique serial number, user s name, and address, date stove installed/sold including the name of the stove installer or person / institution selling the stove and the amount of direct subsidy. Each ICS installed under the BESP programme has a unique identification/serial number. The information in Annex 5 is an abstract of the BESP database. The database does not allow double-entries and the procedures and quality control and quality assurance within BESP minimise the risk that a single ICS is entered into the database twice. Nepal A Host Party: A Geographic reference or other means of identification allowing the unique identification of the small-scale CPA (maximum one page):

4 CDM Executive Board page 4 The CPA 1: Promotion of the Improved Cooking Stove (ICS) Nepal PoA is located in Nepal. The ICS are sold by pre-qualified companies for ICS. The actual location of each ICS is recorded after the sales transaction takes place and the ICS has been implemented. BESP has maintained an up-to-date database of all ICS which forms the basis for the lists of ICS in this CPA. The geographical coordinates of Nepal are: Latitude degree North to degree North Longitude degree East to degree East Each ICS installed under this CPA has the information on unique identification/ serial number, user s name, and address, date stove installed/sold including the name of the stove installer or person / institution selling the stove and the amount of direct subsidy. A.4.2. Duration of the small-scale CPA: 01/10/2011 A Starting date of the small-scale CPA: A Expected operational lifetime of the small-scale CPA: The operational lifetime of each ICS is 3 years. The ICS will be replaced by the new ICS once the operational lifetime of a ICS is over. A.4.3. Choice of the crediting period and related information: Renewable crediting period A Starting date of the crediting period: The crediting period starts at the date of inclusion of the CPA and after registration of the PoA which is estimated to be 01/04/2012. A Length of the crediting period, first crediting period if the choice is renewable CP: The duration of the crediting period of this CPA is 7 years. The PoA is expected to be registered on 01/04/2012. With an expected lifetime of 28 years the end date of the PoA is 30/09/2040. The PoA thereby does not limit on the duration of the crediting period of this CPA. A.4.4. Estimated amount of emission reductions over the chosen crediting period: Year Estimation of emission reduction (tonnes of CO2e) 2012 (01/04/ /12/2012) 7, , ,714

5 CDM Executive Board page 5 Year Estimation of emission reduction (tonnes of CO2e) , , , , (01/01/ /03/2019) 3,571 Total estimated reductions (t CO 2 e) 75,000 Total number of crediting years 7 Annual average emission reduction (t CO 2 e) 10,714 A.4.5. Public funding of the CPA: The ICS included in the CPA receive subsidies and technical support under the BESP. The program receives funding from the following sources: Nepalese Government Government of Norway Danish International Development Agency (DANIDA) Department for International Development (DFID), United Kingdom Kreditanstalt für Wiederaufbau (KfW) Referring to OECD guidance on use of ODA funding for CDM projects the issue of diversion of ODA has been addressed for all donors involved in the BESP project. 4 A.4.6. Information to confirm that the proposed small-scale CPA is not a de-bundled component The proposed project is not a de-bundled component of a large-scale CDM project activity.the paragraph 10 of Guidelines on assessment of debundling for SSC project activities (Version 03, EB54) states that " If each of the independent subsystems/measures (e.g., biogas digester, solar home system) included in the CPA of a PoA is no larger than 1% of the small-scale thresholds defined by the methodology applied, then that CPA of PoA is exempted from performing de-bundling check i.e., considering as not being a debundled component of a large scale activity." The annual energy savings per independent subsystems/measures (Improved Cooking Stove) is GWh th (=8.8139MWh th = MWh). This value is smaller than the limit of 0.6GWh. Also the ICS are disseminated in multiple locations across the country. Hence the project activity is not a debundled component of a large scale CDM project activity. Please refer the section E.2 of SSC PoA DD for details. A.4.7. Confirmation that small-scale CPA is neither registered as an individual CDM project activity or is part of another Registered PoA: 4 OECD, DAC/CHAIR(2004)4/FINAL: ODA eligibility issues for expenditures under the clean development mechanism (CDM), available at:

6 CDM Executive Board page 6 The small-scale CPA is neither registered as an individual CDM project activity nor is it part of another registered PoA. This small-scale CPA lists a unique set of ICS that are not part of any other CDM project activity or CPA. BESP registers all households that implement a ICS under its BESP program. Each household by contract transfers the title to the emission reductions to BESP/AEPC. The double counting is avoided by giving each ICS a unique number. SECTION B. Eligibility of small-scale CPA and Estimation of emissions reductions B.1. Title and reference of the Registered PoA to which small-scale CPA is added: Title: Promotion of the Improved Cooking Stove (ICS) Nepal Reference: The PoA is registered under UNFCCC Reference No. [NOT AVAILABLE YET]. B.2. Justification of the why the small-scale CPA is eligible to be included in the Registered PoA : As per the Eligibility criteria for inclusion of a SSC-CPA in the PoA discussed in section A of SSC PoA DD, the CPA is eligible because it meets all criteria listed. These criteria are All ICS included in the CPA are located in Nepal. All ICS included in the CPA are household ICS (Mud or Metallic Stoves). A CPA does not exceed the microscale limits (60GW th ) for Type II projects. SSC-CPA follows the baseline and monitoring methodology AMS II G/v03 and meet its eligibility criteria as discussed below Each ICS included in the CPA have a unique number. These numbers are used to confirm that each ICS is counted only once and not already developed under a different CDM project or CPA. All ICS included in the CPA are implemented under the BESP which provides technical guarantees and ensures that the ICS is subject to BESP's quality control programs. The owners of all ICS included in the CPA have signed an agreement in which it allows AEPC to market the emission reductions from the installation and operation of the ICS. All the ICS included in the CPA displace the use of non-renewable biomass for cooking. The Promotion of the Improved Cooking Stove (ICS) Nepal CPA 1 meets the applicability criteria of AMS II.G/v03 as follows: Criteria (AMS II.G/v03) This category comprises appliances involving the efficiency improvements in the thermal applications of non-renewable biomass. Examples of these technologies and measures include the introduction of high efficiency biomass fired cook stoves or ovens or dryers and/or improvement of energy efficiency of existing biomass Explanation The SSC-CPAs under this PoA includes the dissemination of the high efficiency biomass fired cook stoves, improving the efficiency of the existing use of stove and improving the efficiency by 10-15%. Each CPA will save non-renewable biomass which otherwise would have been consumed by less efficiency cooking appliances. The single pot or multipot portable or in situ improved cooking stoves will have a specified efficiency of at least

7 CDM Executive Board page 7 Criteria (AMS II.G/v03) Explanation fired cook stoves or ovens or dryers. 20 %. Project participants are able to show that non-renewable biomass has been used since 31 December 1989, using survey methods or referring to published literature, official reports or statistics. The non-renewable have been used in the country since The Baseline Study 5 conducted in 2010/11 demonstrated that the time needed to gather firewood, the price of firewood and the distance travelled to gather firewood is increasing at least since 1989 (please refer to section E.4. for details). In that survey the respondents were asked to provide averages for the time needed to gather firewood, the distance travelled and the price. The average of the estimates from all respondents, showed a clear increase on all three indicators. B.3. Assessment and demonstration of additionality of the small-scale CPA, as per eligibility criteria listed in the Registered PoA: The additionality of the CPA is demonstrated by following the criteria outlined in Guidelines for demonstrating additionality of microscale project activities (version 02), Annex 25, EB60. The paragraph 3 of this guideline states that the 3. Energy efficiency project activities that aim to achieve energy savings at a scale of no more than 20 Gigawatt hours per year are additional if any one of the conditions below is satisfied: (a) The geographic location of the project activity is in LDC/SID or special underdeveloped zone of the host country identified by the Government before 28 May 2010; (b) The project activity is an energy efficiency activity with both conditions (i) and (ii) satisfied; (i) Each of the independent subsystems/measures in the project activity achieves an estimated annual energy savings equal to or smaller than 600 megawatt hours; and (ii) End users of the subsystems or measures are households/communities/smes. As mentioned in section E.2 of the SSC PoA DD, CPAs under this PoA will result in an annual energy savings of below 60GWh th (20GWh) and will be implemented in Nepal, a Least Developed Country (LDC) 6 of Asia. The project is additional and there is no need for further assessment and demonstration of additionality. The explanation for each of the condition listed in the Guidelines for demonstrating additionality of microscale project activities (version 02) is discussed below. Criteria/ Condition The geographic location of the project activity is in LDC/SID or special underdeveloped zone of the host country identified by the Explanation The geographic location of the project activity is in Nepal. The improved cooking stoves included in the project activity will be disseminated in different 5 The baseline study was conducted by the independent third party (Nepal Environmental and Scientific Services [NESS] Private Limited, Kathmandu, Nepal) 6

8 CDM Executive Board page 8 Government before 28 May 2010 Each of the independent subsystems/measures in the project activity achieves an estimated annual energy savings equal to or smaller than 600 megawatt hours; and End users of the subsystems or measures are households/communities/smes. districts of Nepal. Nepal is a Least Developed Country (LDC) of Asia. The annual energy savings per independent subsystems/measures (Improved Cooking Stove) is GWh th (=8.8139MWh th = MWh). This values is smaller than the limit of 600MWh. The users of the ICS are the individual households as the ICS will be disseminated in different districts of Nepal. B.4. Description of the sources and gases included in the project boundary and proof that the small-scale CPA is located within the geographical boundary of the registered PoA. The project boundary of the SSC-CPA follows the definition in AMS II.G/v03. The project boundary is the physical, geographical area of the use of biomass or the renewable energy. The emissions sources to be included in, or excluded from, each SSC-CPA boundary in the proposed PoA are presented in the table below: Table 2: Sources and gases included in the SSC-CPA boundary Source Gas Included? Justification/ Explanation Baseline: Combustion of non CO 2 Yes Major source of emissions renewable biomass for cooking. CH 4 No Not required by methodology, only CO 2 emission factor for fossil fuels is considered. Conservative Assumption. N 2 O No Not required by methodology, only CO 2 emission factor for fossil fuels is considered.. Conservative Project activity: Combustion of non renewable biomass for cooking. Assumption. CO 2 Yes Major source of emissions CH 4 No Not required by methodology, only CO 2 emission factor for fossil fuels is considered. N 2 O No Not required by methodology, only CO 2 emission factor for fossil fuels is considered. The geographical boundaries of the CPA are the same as the geographical boundaries of the PoA. B.5. Emission reductions: B.5.1. Data and parameters that are available at validation: Data / Parameter: B old Data unit: tonnes/household/year Description: Quantity of woody biomass used in the absence of the project activity Source of data used: Baseline Survey Value applied: 4.23 Justification of the choice of data or The baseline survey estimated the average biomass usage per annum across relevant clusters. The survey was conducted in two ways perception survey and

9 CDM Executive Board page 9 description of measurement methods and procedures actually applied : Any comment: experimental survey. In the perception survey, the end users were interviewed about their usage pattern of the biomass for the household cooking using the traditional cooking stoves. In the experimental the interviewer also measured the actual biomass used in the traditional cooking stove for cooking the meals. The baseline survey was conducted following the General Guidelines For Sampling And Surveys For Small-Scale CDM Project Activities (Version 01); CDM EB50 Annex 30. This parameter shall remain fixed for the monitoring periods. η old Data / Parameter: Data unit: Percentage Description: Efficiency of the system being replaced (Traditional Cooking Stoves) Source of data used: Paragraph 5 of AMS II.G/v03 Value applied: 10% Justification of the The default value of 0.10 is used as the replaced system is a three stone fire, or a choice of data or conventional system with no improved combustion air supply or flue gas description of ventilation system, i.e. without a grate or a chimney. measurement methods and procedures actually applied : Any comment: This parameter shall remain fixed for the monitoring periods. f NRB,y Data / Parameter: Data unit: Percentage Description: Fraction of woody biomass saved by the project activity in year y that can be established as non-renewable biomass Source of data used: This parameter is estimated using parameters taken from published reports. These include sustainable yield of woody biomass in Nepal, per-capita consumption of fire wood in Nepal and the rate of decline of forests in Nepal as reported in the Forest Resource Assessment Report prepared by the Food and Agricultural Organization (FAO). Value applied: 77.17% Justification of the The Forest Resource Assessment Report of FAO for Nepal quantifies the choice of data or sustainable yield of woody biomass used as fire wood to be 5.4 Million description of tonnes/year in the year , which according to the conditions noted above, measurement methods qualifies as DRB. The forest cover in Nepal is reported to be declining at a rate and procedures actually of 1.7 % in the same FAO report. Taking into account the rate of decline of applied : forest, the DRB in Nepal for the year 2010 is estimated to be 4.10 Milllion tonnes/year. With a projected population of Million in 2010/2011 8, and a per capita woody biomass consumption of 640 kg/year 9, the total consumption of woody biomass in Nepal is estimated to be Million tonnes/year. Given that the 7 Table 44, Forest Resource Assessment 2000, Forest Resource of Nepal, Country Report, by FAO Table 41, Forest Resource Assessment 2000, Forest Resource of Nepal, Country Report, by FAO

10 CDM Executive Board page 10 Any comment: DRB for the corresponding year is estimated to be 4.17 Million tonnes/year, NRB in Nepal is estimated at Million tonnes/year. Thus the value of f NRB is 77.17%. The fraction has been calculated from the data available at country level and is therefore applicable for all the regions terai, hills and mountains. This parameter is estimated based on data taken from published reports and shall remain fixed. NCV biomass Data / Parameter: Data unit: TJ/tonne Description: Net calorific value of the non-renewable woody biomass that is substituted Source of data used: Paragraph 5 of AMS II.G/v03 Value applied: Justification of the As per the methodology AMS II.G/v03 choice of data or description of measurement methods and procedures actually applied : Any comment: This parameter shall remain fixed for the monitoring periods. EF projected_fossilfuel Data / Parameter: Data unit: tco 2 /TJ Description: Emission factor for the substitution of non-renewable woody biomass by similar consumers Source of data used: Paragraph 5 of AMS II.G/v03 Value applied: 81.6 Justification of the This value represents the emission factor of the substitution fuels likely to be choice of data or used by similar users, on a weighted average basis. It is assumed that the mix of description of present and future fuels used would consist of a solid fossil fuel (lowest in the measurement methods ladder of fuel choices), a liquid fossil fuel (represents a progression over solid and procedures actually fuel in the ladder of fuel use choices) and a gaseous fuel (represents a applied : progression over liquid fuel in the ladder of fuel use choices). Thus a 50% weight is assigned to coal as the alternative solid fossil fuel (96 tco 2 /TJ) and a 25% weight is assigned to both liquid and gaseous fuels (71.5 tco 2 /TJ for Kerosene and 63.0 tco 2 /TJ for Liquefied Petroleum Gas (LPG). Any comment: This parameter shall remain fixed for the monitoring periods. Data / Parameter: Ly Data unit: Fraction Description: Leakage adjustment factor Source of data used: Paragraph 13a. of AMS II.G/v03 Value applied: 0.95 Justification of the choice of data or description of As per the methodology AMS II.G/v03, B old can be multiplied by a net to gross adjustment factor of 0.95 to account for leakages, in which case surveys are not required. measurement methods

11 CDM Executive Board page 11 and procedures actually applied : Any comment: This parameter shall remain fixed for the monitoring periods. B.5.2. Ex-ante calculation of emission reductions: Paragraph 4 of AMS II.G/v03 requires that the project participants assume that in the absence of the project activity, the baseline scenario would be the use of fossil fuels for meeting similar thermal energy needs. The actual baseline scenario is the use of NRB. Since NRB has higher carbon intensity than the fossil fuels proposed in AMS II.G, this assumption reduces the emission reductions significantly, making the outcome more conservative. According to paragraph 5 of methodology AMS II.G/v03, emission reductions would be calculated as: ER B * f * NCV * EF (1) y y,savings NRB,y biomass projected_ fossilfuel Where: ER y B y,savings f NRB,y NCV biomass EF projected_fossilfuel : Emission reductions during the year y in tco 2 e : Quantity of woody biomass that is saved in tonnes : Fraction of woody biomass saved by the project activity in year y that can be established as non-renewable biomass : Net calorific value of the non-renewable woody biomass that is substituted (IPCC default for wood fuel, TJ/tonne) : Emission factor for the substitution of non-renewable woody biomass by similar consumers. Use a value of 81.6 tco 2 /TJ 10 As stipulated in the paragraph 6 of AMS II.G/v03, B y,savings is determined using option 2: B y,savings ηold Bold (1- ) (2) η new Where: B old : Quantity of woody biomass used in the absence of the project activity in tonnes η old : 1. Efficiency of the system being replaced, measured using representative sampling methods or based on referenced literature values (fraction), use weighted average values if more than one type of system is being replaced; 2. A default value of 0.10 may be optionally used if the replaced system is a three stone fire, or a conventional system with no improved combustion air supply or flue gas ventilation system, i.e. without a grate or a chimney; for other types of systems a default value of 0.2 may be optionally used 10 This value represents the emission factor of the substitution fuels likely to be used by similar users, on a weighted average basis. It is assumed that the mix of present and future fuels used would consist of a solid fossil fuel (lowest in the ladder of fuel choices), a liquid fossil fuel (represents a progression over solid fuel in the ladder of fuel use choices) and a gaseous fuel (represents a progression over liquid fuel in the ladder of fuel use choices). Thus a 50% weight is assigned to coal as the alternative solid fossil fuel (96 tco 2 /TJ) and a 25% weight is assigned to both liquid and gaseous fuels (71.5 tco 2 /TJ for Kerosene and 63.0 tco 2 /TJ for Liquefied Petroleum Gas (LPG).

12 CDM Executive Board page 12 η new : Efficiency of the system being deployed as part of the project activity (fraction), as determined using the Water Boiling Test (WBT) protocol. Use weighted average values if more than one type of system is being introduced by the project activity As stipulated in the paragraph 7 of AMS II.G/v03, B old is calculated as the product of the number of systems multiplied by the estimated average annual consumption of woody biomass per appliance (tonnes/year). The values of the various parameters used in the ex-ante estimation of the emission reduction are presented in the table below: Parameter Data ID Value Units Reference Number of Improved N 5,645 Number BESP Database Cooking Stove installed in the CPA Quantity of woody biomass B old 4.23 Tonnes Baseline Survey 2010/11 used in the absence of the project activity Efficiency of the system being replaced η old 10.00% Percentage As specified in the approved methodology AMS II.G/v03: Efficiency of the system η new 20.00% Percentage Measured Value being deployed as part of the project activity (fraction) Fraction of woody biomass saved by the project activity in year y that can be established as non-renewable biomass f NRB,y 77.17% Percentage Calculated (Please refer Annex 3 Baseline Information) Net calorific value of the nonrenewable woody biomass that is substituted (IPCC default for wood fuel, TJ/tonne) Emission factor for the substitution of non-renewable woody biomass by similar consumers. Use a value of 81.6 tco2/tj NCV biomass TJ/tonne As specified in the approved methodology AMS II.G/v03 IPCC default for wood fuel, TJ/tonne EF projected_fossilfu el tco2/tj As specified in the approved methodology AMS II.G/v03 Use a value of 81.6 tco2/tj Emission reductions during ER y 11, tco2 Calculated the year y Leakage consideration As per paragraph 13.a) of approved methodology AMS II.G/v03 Leakage Emissions Ly tco2 Calculated Net Emission reductions during the year y ER y 10, tco2 Calculated ER y 10,714 tco2 Rounded Down Value

13 CDM Executive Board page 13 B.5.3. Summary of the ex-ante estimation of emission reductions: Estimation of Estimation of Estimation project activity baseline Years of Leakage emissions emissions (tco2e) (tco2e) (tco2e) 2012 (01/04/ Estimation of overall emission reductions (tco2e) - 7, ,143 31/12/2012) , , , , , , , , , , , , (01/01/ /03/2019) - 3, ,571 Total (tonnes of CO2e) - 78,947 3,947 75,000 B.6. Application of the monitoring methodology and description of the monitoring plan: B.6.1. Description of the monitoring plan: The table below provides the aspects to be monitored according to methodology AMS II.G and its applicability to the ICS SSC-CPA. Aspects to be monitored according to methodology Monitoring shall consist of checking the efficiency of all appliances or a representative sample thereof, at least once every two years (biennial) to ensure that they are still operating at the specified efficiency (η new ) or replaced by an equivalent in service appliance. Where replacements are made, monitoring shall also ensure that the efficiency of the new appliances is similar to the appliances being replaced. Monitoring shall also consist of checking of all appliances or a representative sample thereof, at least once every two years (biennial) to determine if they are still operating or are replaced by an equivalent in service appliance. If the quantity of fuel saved is determined using the Kitchen Performance Test (i.e. paragraph 6, Option 1), monitoring shall ensure that fuel Applicability to the Project The emission reduction is linked with the efficiency of the appliances (ICS) so this needs to be monitored. Emission reductions is directly proportional to the number of appliances (ICS in case of the project) still performing. So this needs to be monitored. The quantity of fuel saved is not determined using the Kitchen Performance Test (i.e. Parameter to be Monitored (YES/NO/Not Applicable) Yes (Through Annual Survey) Yes (Through Annual Survey) Not Applicable

14 CDM Executive Board page 14 Aspects to be monitored according to methodology consumption during the period of the project activity is monitored annually. If option (b) in paragraph 7 is chosen for determining B old, monitoring shall include the amount of thermal energy generated by the project technology t in year y In order to assess the leakage, monitoring shall include data on the amount of woody biomass saved under the project activity that is used by non-project households/users (who previously used renewable energy sources). Other data on non-renewable woody biomass use required for leakage assessment shall also be collected. Monitoring shall ensure that: a. Either the replaced low efficiency appliances are disposed of and not used within the boundary or within the region; or b. If baseline stoves continue to be used, monitoring shall ensure that the fuel-wood consumption of those stoves is excluded from B old. Applicability to the Project Paragraph 6, Option 1) of AMS II.G/v03. It is determined using option 2. The option (b) in paragraph 7 of AMS II.G/v03 is not chosen for determining B old. It is determined using the option (a) in paragraph 7. The methodology allows the use of a default factor of 0.95 to account for leakage. So this will not be monitored in the project. This needs to be monitored to determine the percentage of plants that are operational. Parameter to be Monitored (YES/NO/Not Applicable) Not Applicable No (Instead a default factor of 0.95 shall be used) Yes (Through Annual Survey) The various parameters that are to be monitored under the project activity are listed below: 1. Data / Parameter: N y,i Data unit: Number Description: Number of Improved Cook Stove that are disseminated Source of data to be Installation report used: Value of data applied 5,645. for the purpose of calculating expected emission reductions in section B.5 Description of The information on the number for respective type of the stoves disseminated at measurement methods the user household will be recorded by the promoter/ stove master/ installer in and procedures to be their record during installation/ sale of stoves. Each stove installed/sold is applied: recorded in a stove user data form with serial no, user s name, address, date stove installed/sold including the name of the stove installer or person/

15 CDM Executive Board page 15 QA/QC procedures to be applied: Any comment: institution selling the stove and the amount of direct subsidy. Mud Improved Cooking Stoves: The numbers of mud ICS disseminated are reported by promoters/ stove masters to Local/District partners. It is then entered into the database by Regional Renewable Energy Service Centers (RRESCs) and sent to Biomass Energy Support Program (BESP) of AEPC every month in the soft copy. The total stove installation report will be submitted in the hard copy in each quarter of the year The central office team will generate random sample for monitoring the 1% of installed stoves by RRECSs. Sampled ICS will be monitored by Local Partners and field technical coordinator of RRESC. Metallic Improved Cooking Stoves (MICS): In case of metallic ICS, the quality of the stove is checked at the manufacturing companies premises in a lot during spot monitoring before delivery of the stoves to the users. The installer fills up subsidy application form during installation of the stove and database is entered at RRESC which is then forwarded to AEPC/ESAP database for further verification and release of subsidy amount. Each year 1% sample of MICS installed in one year period are randomly generated through database software and monitored through third party consultant. If any deviations are found and reported by the third party consultant, the verification monitoring will be conducted by AEPC for necessary action and correction measures. The monitored value of this parameter will be used in the determination of the ex-post emission reduction 2. Data / Parameter: η new Data unit: Percentage Description: Efficiency of the ICS that are disseminated as part of the project Source of data to be Water Boiling Test used: Value of data applied To be determined in specific SSC-CPA. This value has been considered as 20% for the purpose of for ICS SSC-CPA 1. calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: The two different types of ICS are disseminated in the High Hills and Terai region. Separate Water Boiling Test will be carried out for these ICS using the standard National Stove Performance testing protocol developed by AEPC/ESAP which is based on testing protocol developed by University of California, Berkeley and The Shell Foundation. The efficiency test will be carried out for different age of ICS (one year, two year or three year).the value obtained from the test will be used to calculate the emission reductions of the systems for that year of operation. The test will be carried out once a year by national experts as an integral part of the annual user survey to be conducted by the independent third party every year. The results from the test (ex-post monitored value) will be compared with the values adopted for baseline emission calculations and the conservative value

16 CDM Executive Board page 16 Any comment: shall be considered for ex post emission reduction calculation. The monitored value of this parameter will be used in the determination of the ex-post emission reduction. 3. Data / Parameter: P y Data unit: Percentage Description: Percentage of ICS implemented that is operational Source of data to be Annual User Surveys to be carried out once in a year used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: To be determined in specific SSC-CPA. This value has been considered as 100% for ICS SSC-CPA 1. The operation of the ICS will be checked annually during the annual user survey. From the total population of ICS included in the project activity, statistically representative samples will be drawn for the purpose of carrying out the survey. The percentage of ICS found to be operational during the sample survey shall be used as the percentage value for P y. (Refer to Annex-4 for details on sampling) The Annual User Survey to determine the percentage of ICS implemented that is operational will be carried out following the General Guidelines For Sampling And Surveys For Small-Scale CDM Project Activities (Version 01); CDM EB50 Annex 30. The monitored value of this parameter will be used in the determination of the ex-post emission reduction. The approved methodology AMS II.G/v03 requires monitoring of the following parameters: 1. Number of Improved Cook Stove that are disseminated in each CPA 2. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating at the specified efficiency (η new ) or replaced by an equivalent in service appliance. Where replacements are made, monitoring shall also ensure that the efficiency of the new appliances is similar to the appliances being replaced 3. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating or are replaced by an equivalent in service appliance. 4. The replaced low efficiency appliances are disposed of and not used within the boundary or within the region; The information on the number for respective type of the improved cooking stoves disseminated at the user household will be recorded by the promoter in their database during installation/ sale of stoves. Each stove installed/sold is recorded in a stove user data form with serial no, user s name, address, date stove installed/sold including the name of the stove installer or person/ institution selling the stove and the amount of direct subsidy. The performance of the ICS (annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating), efficiency of the ICS and non use of traditional cooking

17 CDM Executive Board page 17 stoves will be based on the Annual User Survey. The survey will be conducted following statistically sound sampling procedure. The Annual User Survey will be conducted following the General Guidelines for Sampling and Surveys for Small-Scale CDM Project Activities (EB50, Annex 30). As part of the survey, statistically valid sample of ICS will be surveyed and in order to achieve 90% confidence interval and a 10% margin of error requirement for the sampled parameters. The sample will be taken from different geographical region (Terai, High Hills), different development region (eastern, central, western, mid-western and far western) and different types of ICS proportionate to the ICS in the CPA. In order to have an unbiased and independent assessment, the survey will be carried out through an independent third party to check the operation/functioning of the ICS installed as part of the project activity. Quality Control and Quality Assurance Procedure The QA/QC includes the following elements: Annual User Survey: The Annual User Survey uses a random sample of ICS users to measure a widerange of health, economic, social and environmental indicators. The information obtained from the user survey is used to enable continuous improvement of the program and the technology applied. Mud Improved Cooking Stoves: The numbers of mud ICS disseminated are reported by promoters/ stove masters to Local/District partners. It is then entered into the database by Regional Renewable Energy Service Centers (RRESCs) and sent to Biomass Energy Support Program (BESP) of AEPC every month in the soft copy. The total stove installation report will be submitted in the hard copy in each quarter of the year. The central office team will generate random sample for monitoring the 1% of installed stoves by RRECSs. Sampled ICS will be monitored by Local Partners and field technical coordinator of RRESC. Metallic Improved Cooking Stoves: In case of metallic ICS, the quality of the stove is checked at the manufacturing premises in a lot during spot monitoring before delivery of the stoves to the users. The installer fills up subsidy application form during installation of the stove and database is entered at RRESC which is then forwarded to AEPC/ESAP database for further verification and release of subsidy amount. Each year 1% sample of the one year old system is randomly generated through database software and monitored through third party consultant. If any deviations are found and reported by the third party consultant, the verification monitoring will be conducted by AEPC for necessary action and correction measures. Internal Audit Procedure Mud Improved Cooking Stoves: In case of mud ICS the internal auditing is done through Local/ District Partners and RRESCs. The promoter/ stove masters submit the data along with the user information sheet that includes user s name, and address, date stove installed/sold including the name of the stove installer or person / institution selling the stove. This user information sheet is submitted to local/ district partners by the promoters/ stove masters. The local/ district partners cross checks the installation details in random basis. The RRESCs also cross checks the installation details in random basis. Metallic Improved Cooking Stoves: In case of Metallic ICS the internal auditing is done in AEPC by cross checking copy of subsidy application form submitted by manufacturing cum installing companies and the soft copy details submitted by RRESCs to AEPC/ESAP. The soft copy detail is generated by RRESC through a copy of subsidy application form submitted by manufacturing cum installing companies to RRESCs.

18 CDM Executive Board page 18 Data Archiving Procedure The data archiving procedures followed by the BESP after the completion of the construction of the ICS is presented below: Mud Improved Cooking Stoves: The numbers of mud ICS disseminated are reported by promoters/ stove masters to Local/District partners. It is then entered into the database by Regional Renewable Energy Service Centers (RRESCs) and sent to Biomass Energy Support Program (BESP) of AEPC/ESAP every month in the soft copy. The total stove installation report will be submitted in the hard copy in each quarter of the year. Metallic Improved Cooking Stoves: The installer/ manufacturing company representative fills up subsidy application form during installation of the stove and database is entered at RRESC which is then forwarded to BESP of AEPC/ESAP database for further verification and release of subsidy amount. Organization Structure The chart below presents the role and responsibilities of various organisations involved in the ICS PoA: Figure 1: Organisational structure for Mud ICS Figure 2: Organisational structure for Metallic ICS Alternative Energy Promotion Centre (AEPC) o AEPC is responsible for overall coordination and the execution of the BESP. The AEPC provides feedbacks to GoN for policy formulation and executes the policies. o AEPC is responsible for overall monitoring and evaluation together with its development partners. This also includes endorsing new modalities e.g. the modality to be developed to target the poor. o AEPC is responsible for carrying out Annual ICS Users Survey that is also in line with the requirements of the CDM. The survey would report the performance of the stoves as well as perceptions of ICS users. o AEPC administrates subsidy for metallic ICS as per Nepal Government s Renewable (Rural) Energy Subsidy Policy and its Delivery Mechanism.

19 CDM Executive Board page 19 o AEPC is responsible for coordination with national level institutions/agencies relevant for promotion of ICS technology. o AEPC advocates and promotes ICS through BESP/ESAP at macro level. External Development Partners (EDPs): o EDPs support AEPC in dissemination of mud and metallic ICS through BESP/ESAP and include Danish International Development Agency (DANIDA), Government of Norway, Department for International Development of United Kingdom (DFID) and German Development Bank (KfW). o EDPs provide financial support for technical supports to disseminate ICS and for subsidy to households installing metallic ICS under the ESAP Phase-II. o EDPs are also responsible for overall programme evaluation together with the AEPC and other development partners. Energy Sector Assistance Program (ESAP) - Biomass Energy Support Program (BESP) o BESP/ESAP provides technical supports through its network of Regional Renewable Energy Service Centres (RRESCs) to organizations of the ICS sector. The technical supports include awareness building, promotion, capacity building, monitoring, advocacy/lobbying, gender and social inclusion, etc. o Based on approved plans and budgets, BESP/ESAP supports AEPC to administer the fund for technical supports as per developed guidelines and procedures. o BESP/ESAP develops technical designs of mud and metallic ICS and recommends AEPC to include them in the programme. o BESP/ESAP supports AEPC in administration of subsidy for metallic ICS as per Nepal Government s Renewable (Rural) Energy Subsidy Policy and its Delivery Mechanism. This includes quality control and regular monitoring of metallic ICS, company qualification, performance evaluation as well as for provision of after-sales services and warrantee. o BESP/ESAP facilitates, promotes, monitors and backstops the development of ICS sector Regional Renewable Energy Service Centers (RRESCs) o RRESCs, by themselves or through District Renewable Energy Service Centres (DRESCs), are responsible for facilitating the implementation of programme. o RRESCs/DRESCs are responsible for imparting technical supports such as awareness building, promotion, capacity building, local level advocacy/lobbying, gender and social inclusion etc of the programme. o RRESCs/DRESCs responsible for skill transfer to BGs/SMs, monitoring/follow up to ensure skill transfer to BGs/SMs, orientation/demonstration, demand creation & massive dissemination of quality ICS. o RRESCs/DRESCs responsible for regular monitoring as well as efficiency testing of ICS for internal quality control. o RRESCs responsible for data entry and regular reporting to BESP/ESAP District Development Committees (DDCs) o DDCs, through their District Energy and Environment Units/Sections (DEEU/DEES), are responsible for coordination and information sharing on ICS o DDCs help in promotion of metallic ICS by awareness raising and contributing a part of fund to be borne by the users (non-local material cost for mud-brick ICS and transportation cost for metallic ICS)

20 CDM Executive Board page 20 o DDCs, together with the AEPC and other development partners, are also responsible in monitoring of mud-brick and metallic ICS. Local Development Partners (District/Local Line Agencies) /Micro Finance Institutions (MFIs) o Where applicable, local development partners (District/local line agencies) such as Federation of Community Forest User Groups (FECOFUN), Red Cross etc. and other Community Based Organizations (CBOs) and Non-government Organizations (NGOs) help in promotion of metallic ICS by awareness raising and contributing a part of fund to be borne by the users as transport subsidy. o When necessary, Micro Finance Institutions (MFIs) lend credit to metallic ICS users. Business Groups (BGs)/Stove Masters (SMs) o SMs are the permanent residents of the locality trained by program in mud-brick ICS construction, whereas the BGs are the informal groups of SMs formed to keep themselves active and focused in the ICS business through self-motivation. o SMs sell their skill by constructing mud-brick ICS as per the need of prospective user household and charge a fee (in cash or kind, akin with wages of skilled work locally). SMs are responsible to train the users on operation, maintenance and repair of ICS. Metallic Stove Manufacturers (MSMs) o MSMs are responsible for manufacturing, supplying and installing quality metallic ICS to eligible users as per the designs and specifications provided by AEPC. o MSMs are responsible for training metallic ICS users on proper operation and maintenance of the system. o MSMs are responsible to handover the Users Manual and any other information materials provided from BESP/ESAP and train the users on operation and maintenance of the plants. o MSMs are responsible to complete documentation required for processing of subsidy and for release of the after-sales service guarantee money and submit them to AEPC in a timely manner. o MSMs are responsible to cooperate and accompany AEPC staff, or any other personnel as assigned and communicated by AEPC, in the field for quality control and other verification purposes. o MSMs are responsible to visit metallic ICS user households and deliver the promised after-sales service and other services fully respecting the promised guarantee. o MSMs are responsible for promotion, awareness and other activities that help to promote the technology by linking it with other rural development agencies at the local level. o MSMs coordinate with DDCs/VDCs, CBOs/NGOs and local development partners to mobilize support for transportation of metallic ICS to the user households in the remote areas. o MSMs coordinate with banks, MFIs and other CBOs/NGOs to ease credit flow to beneficiaries. Users The users are the ones who actually uses the mud improved cooking stove or metallic improved cooking stoves. The users o Request for the installation of the ICS as per their need. o Payment of installation fee to promoter o Regular maintenance of the ICS

21 CDM Executive Board page 21 C.1. Please indicate the level at which environmental analysis as per requirements of the CDM modalities and procedures is undertaken. Justify the choice of level at which the environmental analysis is undertaken: Please tick if this information is provided at the PoA level. In this case sections C.2 and C.3 need not be completed in this form. C.2. Documentation on the analysis of the environmental impacts, including transboundary impacts: Please refer to the CDM-SSC-PoA-DD C.3. Please state whether an environmental impact assessment is required for a typical CPA, included in the programme of activities (PoA), in accordance with the host Party laws/regulations: SECTION D. Stakeholders comments Please refer to the CDM-SSC-PoA-DD D.1. Please indicate the level at which local stakeholder comments are invited. Justify the choice: Please tick if this information is provided at the PoA level. In this case sections D.2 to D.4 need not be completed in this form. D.2. Brief description how comments by local stakeholders have been invited and compiled: Please refer to the CDM-SSC-PoA-DD D.3. Summary of the comments received: Please refer to the CDM-SSC-PoA-DD D.4. Report on how due account was taken of any comments received: Please refer to the CDM-SSC-PoA-DD