Full Monitoring Report

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1 Full Monitoring Report 30 August December 2012 Version 07 Last date of edit: 10 May 2013 Project ID: GS 966 Project Name: Paradigm Healthy Cookstoves and Water Treatment Project Report filename: Monitoring Report, GS , Iss-2 V6 Period(s) reported: 30 August 2011 through 31 December 2012 Project Database period (unit sales eligible for crediting): 26 April December 2012 Monitoring Period: 30 August 2011 through 31 December 2012 Report submitted by Paradigm Project and Impact Carbon (formerly CEIHD) with local auditing by Berkeley Air Monitoring Group, EcoScope, Dr. Jacob Kithinji and Dr. Kirubi Gathu. Author: Caitlyn Toombs - Program Manager, Impact Carbon Authors of Annexes: Louise Huttinger, Emily Smith, Impact Carbon Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 1

2 Table of Contents 1. Introduction Project Description and Summary Monitoring of parameter values Project Database Emission Reductions Calculations Sustainable development indicators Appended Files List Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 2

3 1. Introduction This project was developed in accordance with Gold Standard VER methodology Improved Cookstove Kitchen Regime- V.02, with respect to the Voluntary Gold Standard GS966 PDD for GS Project 966: Paradigm Healthy Cookstoves and Water Treatment Project. This project promotes the use of efficient and clean energy technologies that can be used for cooking and water treatment throughout Kenya, and generates carbon credits in the voluntary market based on the greenhouse gas emission reductions of these technologies. This report documents the installation of improved cooking stoves and water treatment systems in Kenya as sold by GS966 from 26 April 2010 through 31 December This report also documents the emission reductions generated by these technologies for this Monitoring Period of 30 August 2011 and 31 December Project Description and Summary Project technologies are clustered as follows: Table 1. Project Technology Clusters Cluster Name Household Wood Stove Institutional Wood Stove PoU Non-Chemical Water Treatment Community Water Treatment Household Charcoal Stove PoU Chemical Water Treatment Subclusters Baseline : Non-Wood, All Other Technologies Included This Period JikoPoa, Envirofit G3300, Envirofit M5000 Current Distribution Retail Sales Implementing Partner The Paradigm Project 400L, >400L 400L, >400L Retail Sales The Paradigm Project Baseline : Non-Wood, All Other Baseline : Non-Wood, All Other Ceramic Filter Chlorine Dispenser Units Retail Sales Retail Sales, Free Distribution SWAP (Ceramaji), Chujio (Chujio Ceramics), distributed by Life Force Kiosks Life Force Kiosks, Alethia The first cluster of technologies listed is Household Wood Stoves. These stoves are manufactured by a variety of stove providers. Technologies sold to date include stoves from international manufacturers Envirofit and EzyStove and locally developed JikoPoa stove, created in partnership with the PP. The Envirofit M5000 stove has centralized local assembly in Nairobi, while EzyStove features decentralized local assembly. These stoves achieve fuel savings improvements beyond the common generic Jiko design and three-stone fire. WBT results demonstrate that these technologies can be clustered together, given that they have the same fundamental combustion technology and perform within +/- 5% of each other. Ezy Stove Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 3

4 Table 2. Comparative WBT results - HH wood stove models (see Annex 38 for full report) The second cluster of technologies listed is Improved Institutional Wood cookstoves. Institutional stoves are distributed in sizes ranging from liter cooking capacity, with a carefully moulded body and combustion chamber that allow unique fitting for various size pots. PP is collaborating with local partners to leverage carbon finance to make energy saving, healthy institutional stoves available to institutions throughout Kenya. These stoves, which use wood, are more efficient than traditional three-stone fires and save significant amounts of fuel, enable institutions to allocate more money toward education and health treatment, rather than fuelling the stoves that provide food for students and patients. The third cluster of technologies presented for crediting is classified as Point of Use Non-Chemical Water Treatment (NCWT). NCWT systems such as household filters operate under a variety of conditions (temperature, ph, turbidity) and introduce no chemicals into the water. The ceramic water filters included in this monitoring period works via two basic mechanisms: gravity filtration and disinfection with colloidal silver. The filter removes turbidity, smell and pathogens, and it is appropriate for any type of water source. The brands of filters being credited in this period include the Ceramaji Filter made by the Kenya Ceramic Project and the Chujio Filter made by Chujio Ceramics. The second Monitoring Period also presents a fourth cluster of technologies for crediting: Community-Level Water Treatment. Community-Level Water Treatment consists of systems where the water is treated at the point of collection and not individually at the user s point of consumption (in home). As a result of the differing nature of use, the monitoring for this cluster slightly varies from traditional point of use technologies. Community level water treatment can take use a variety of clean Ceramaji Filter water treatment systems such as chemical treatment in the form of dispensers and kiosks, or boreholes which provide direct access to clean water. In this period we will be crediting community level chlorine dispensers from Alethia and community level chlorine kiosks from Life Force Kiosks. The fifth cluster of technologies listed is Charcoal Stoves. No products have been sold yet. The sixth and final cluster of technologies listed is Point of Use Chemical Water Treatment. No products have been sold yet. A local sales agent shows the Ezy stove to a customer 2.1 Local Business and Economic Development, Capacity Building This project has achieved significant results in three areas this Monitoring Period: business development among local enterprise; Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 4

5 health, economic and environmental co-benefits to local communities; and greenhouse gas emissions reductions. The following provides an overview of highlights from the current monitoring period. This project provides many ancillary benefits in Kenya, such as supporting the local economy and creating jobs. Locally, the project provides employment for significant numbers of workers, office staff and field marketers, and continues to do so as companies grow, production relationships develop and new markets become available. The project also supports micro entrepreneurs and other small enterprises who sell project technologies in different regions of Kenya, providing a diverse supply stream that increases access to clean energy services and increases income for community members. Over time this network will facilitate access to an even broader suite of technologies. Employment: The project directly and indirectly supports employment for partner organizations, local enterprises and distribution entrepreneurs: - Paradigm s local operations in Kenya include a team of ten full-time and sixteen part-time employees. Employment has evolved as employees are offered opportunity for growth: for example, one of the regional Business Development Executives was promoted to countrywide Sales Manager, and a part-time data entry person was promoted to full-time Customer Service Officer. Additional part-time sales campaign staff have been brought on as well. - Paradigm s partnerships with local manufacturing entities have also provided a positive impact on job creation. After transitioning to the updated JikoPoa design, the JikoPoa factory continues to produce stoves at consistently high volumes. The production of the EzyStove, which began in October 2012 with the first container for assembly arriving to Kenya in November 2012, has also created nine new part-time jobs at the assembly warehouse. - Paradigm s stove sales support a vast network of distribution enterprises. While Paradigm Kenya s distribution partners have reduced in numbers (from an estimated 250 to approximately 87 distributors), Paradigm has worked more closely with these remaining distributors to provide additional marketing and training support in order to create more sustainable businesses selling the products and offering higher-quality sales and service to end users. Paradigm Kenya has also begun a successful shift to work with large MFIs and women s table banking organizations that can offer financing to end users who have a limited purchasing power parity to purchase Paradigm products. This shift has allowed the Project to more consistently reach target customers with a PPP of between $1.25 and $2.25/day, as well as help remove the barrier to access due to a lack of financing. - In addition to improving existing sales channels, Paradigm has also partnered with Affirm Global Development to develop an extensive network of Last Mile Entrepreneurs (LMEs), who will invest in training as a door to door sales force reaching the most remote areas of Kenya. There are currently 83 LMEs across Kenya, 90 percent of which are female, and plans to have 500 in five years time, with a target of 75% female employment.. - Water treatment product sales also support livelihoods for a network of entrepreneurs focused on product distribution. Safe Water and Aids Project (SWAP), for example, offers training to business groups and HIV-positive women s groups on how to be health promoters and vendors of public health goods. This program work improves the health of people living with HIV, reduces stigma for those living with HIV, and generates income for HIV-positive women and support groups. Health promoters are empowered and capacitated on various skills like Business skills, ETL (Education through Listening), Drugs dispensation and primary healthcare. - SWAP employs a large team of people; of those, 25 jobs are supported by water product sales, including sales and SWAP Entrepreneurs at an event marketing managers, storekeepers, field officers, and administrative staff. The organization also enables HIV selfhelp groups and other community-based organizations to gain employment and serve their communities in rural Kenya through the sales of ceramic filters. - Lifeforce Kiosks employs 2 people in Kenya, including one manager and one field assistant. In addition, Lifeforce Kiosks enables ten local water vendors in Kibera to improve sales through the supply of clean water treatment and providing support through business training. Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 5

6 - The Alethia Dispensers for Safe Water (DSW) program employs more than 45 staff in Kenya. These staff members focus on a variety of activities, including community outreach, training and coordination, monitoring & evaluation, research & development, operations and administration. This team is responsible for organizing new dispenser installations, on-going maintenance and working with communities to educate and service on-going usage of dispensers. - Additionally, the project has supported the employment of enumerators and local monitoring and evaluation specialists as part of fulfilling the project s monitoring requirements. Market Development and Capacity Building: To support partner project sales nationwide, the project is focused on various market development and capacity building initiatives: - Paradigm Kenya has experimented with various new marketing and advertisement approaches. The most successful has been utilizing pre-existing networks of women s banking organizations and MFIs. These intensive, local, campaign-based, institutional sales allow large numbers of women to become familiar with the product and have a chance to buy at a lower up-front cost. These sales campaigns have their own marketing materials that promote and help sell the products. - Paradigm Kenya has attempted a Gift a Stove campaign in a popular cooking magazine, which attempted to encourage urban people to buy stoves for family members living in rural areas. - The Paradigm Project is investing in mass marketing in Kenya. Including sponsoring a popular TV show called Shamba Shape Up which will feature Paradigm s stoves, airing from March Paradigm Kenya is currently in a rebranding process and plans to launch in 2013 with a new name: EzyLife. Marketing and branding materials have been developed to leverage this new brand as a provider of reliable, aspirational products for Kenyan women. In the future, Paradigm (EzyLife) plans to offer other clean energy products that will be modelled on the branding and marketing for the EzyStove. - SWAP is enabling HIV self-help groups and other community-based organizations to gain employment and serve their communities in rural Kenya through the sales of ceramic filters. - The Alethia DSW program is holding community-level meetings educating users on the benefits of safe water treatment. All attendees are informed and instructed about how water can acquire bacteria, safe water storage practices, the difference between safe water and clear water, health benefits of chlorine, and diseases caused by water and how to take preventative action against them. The community promoter at each water point is further trained on these principles and asked to engage their community and remind them of these lessons on a regular basis. - Lifeforce Kiosks has frequent events and auctions in communities educating attendees on the importance of safe water and providing incentive for them to treat. - All water project partners are designing creative marketing schemes to promote the use of safe water systems such as community level auctions Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 6

7 Community-Level Meeting for Community-Level Chlorine Dispensers. A local "promoter" is elected to take responsibility for refilling the tank, educating the community, and reporting any problems that arise. Paradigm has made a commitment to women s empowerment and entrepreneurship. This is set to become the cornerstone of the business in years to come. This program will include explicit discussions of the important role of women in business and leadership, as well as incorporate images and stories of successful female entrepreneurs into its marketing and branding materials. Paradigm s partnership with Affirm for the Last Mile Entrepreneur program will offer extensive training in business development and business ethics for LMEs and their direct managers. This program offers continuing education opportunities for all participants and will greatly affect skills development and employment throughout Kenya. Paradigm has also secured a pilot (to start in early 2013) as a non-traditional partner of Kiva, which will allow selected female LMEs and distributors to receive loans to further grow and expand their business. This financing program will lower the barrier to entry for entrepreneurs to purchase our products, as well as contribute to establishing a financial background for LMEs who are not currently eligible for traditional financing Manufacturing and Distribution The project continues to focus on improving and streamlining manufacturing processes and maintaining high quality products. As the project expands and grows using carbon revenues, project partners will scale the production and distribution of all project technologies, including stove and water treatment products. For locally manufactured project technologies, the project continues to support manufacturing locations to develop additional production capacity to be able to meet increased consumer demand. For locally manufactured improved household wood stove technologies, the project has developed a quality management and assurance program for defining quality standards. Quality is checked throughout all stages of the manufacturing process. In order to meet these standards, all local factories are implementing an efficient assembly-line manufacturing process with a series of built-in quality controls during the creation of a stove or water filter liner: these quality controls ensure that only the highest quality components are installed on the finished products, because any stove component which is unsatisfactory is repaired or thrown away. A technical expert has also trained the production managers in more efficient spot checking and quality control management, which provides an additional layer of rigor. All stoves are inspected at the point of delivery to Paradigm warehouses for any damage and all stoves are checked by distributors at the point of sale. Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 7

8 Through these efforts the project has achieved the following milestones: Designed a new and improved JikoPoa stove model Shifted local JikoPoa stove production to this new and improved model in March 2012; production numbers for this new stove have reached previous production volumes of 2,000/month Moved to a new warehouse in Nairobi s industrial area to accommodate increased demand Launched production of the EzyStove, which has already had pre-sales for 30,000 units worldwide. Production is currently at 15,000 units per month, with plans to scale to 30,000 units per month in early For locally manufactured water treatment technologies, including the ceramic pot filters that SWAP is distributing, sales of the product has grown from last year. SWAP is increasing their distribution reach and continuing to expand sales Product Design Changes One project technology has undergone a change in design since the last monitoring period: the JikoPoa. As part of actively responding to market demand and feedback from consumers and sales distributors through consumer feedback research, PP has made several alterations to the JikoPoa design. These changes are expected to achieve changes in usability and lifespan. The alterations include: - Skirt removal, allowing customers to use a wider range of pots with the stove - Metal-lined combustion chamber, making the stove easier to light and improving aesthetic appeal - Modified flat cooking surface - Red enamelled paint that is less prone to chipping during transport - Smaller, more efficient packaging, resulting in reduced transportation costs New JikoPoa There have been no other changes to any other project technologies, although it is possible that the project technical managers may identify other opportunities for product changes later. This may include changes such as working with stove supplier Envirofit to design a new product for local production, as well as assessing the potential for improved charcoal stoves. This may also include adding new products to the project technology portfolio. The PP is constantly seeking user feedback to improve stove designs for usability, affordability and aesthetic appeal. Testing and product assessment is on-going; if user-feedback and technical results prove to be positive, carbon finance may be leveraged to apply these new or modified technologies at scale Record Keeping Reporting and recordkeeping continues to become progressively more clear, rigorous, and comprehensive. For all stoves, detailed inventories of sales to distributors are maintained through computer records and in paper and spot-check records, which allows for cross checking of records to ensure transparent and robust tracking of product sales. Paradigm Kenya has made improvements in rigor and efficiency in it tracking product in and out of the warehouse, with highly secure policies in place for stove movement. Combining office and warehouse space has facilitated the implementation and enforcement of proper practices, processes and procedures. Moreover, in late 2011, Paradigm began implementing NetSuite, a full Enterprise Resource Management cloud-based software package that allows for real-time and accurate inventory and financial tracking. Procedures for data entry, storage, and cross-checking help to ensure all records are accurately recorded and tracked. The stoves accounting system is then audited by the third party accounting firm Ernst and Young, which enables independent, detailed and open-access examination by auditors and investors. The Project s Nairobi-based Warehouse Manager and Business Director regularly check the accounting system for inventory and financial tallies for accuracy as well as to allow for streamlining ordering and delivery processes based on real-time accurate information. Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 8

9 To aid in customer data collection, Paradigm has also begun using Carbon Keeper, a mobile and web-based tool that facilitates collecting detailed customer information. Records entered into Carbon Keeper are automatically checked for common data entry errors, serial numbers are checked against serials that have left the warehouse, and data is available in real time over the web, which allows the team to easily select households for Monitoring Kitchen Surveys based on location. Paradigm enters Carbon Rights Waivers (CRWs) into Carbon Keeper on behalf of distributors who prefer to send in paper receipts. To encourage collection of CRWs, Paradigm gives rebates of 30 Kenyan Shillings per CRW collected to dealers, which are checked for accuracy before any rebate is given. To further improve the quality and validity of its household data collection for stoves, Paradigm Kenya completes monthly data checks of 10% of the data and reports this internally. This allows for problems to be caught and addressed early on. Paradigm has also continued to improve its Monitoring & Evaluation practices, including adding Grameen Foundation s Progress out of Poverty Index (PPI) to all its surveys (monitoring, usage, KPTs) to better understand its customer profiles and income levels. Quarterly Monitoring Kitchen Surveys and data entry are now carried out by a third party monitoring organization. The water treatment clusters track all products distributed on an individual basis. For PoU Non-Chemical Treatment, products are sold or distributed to end users by partner organizations either distributing directly or working with local enterprises. Partners distributing products in this cluster require customers to fill out information at point of sale, using paper receipts that are submitted to the partner and kept on file in hard copy. The partner s data entry staff then records all customer sale information into an Excel database which is password protected and spot-checked; this database is sent to PP monthly to review and keep on file. Impact Carbon keeps a Master Database of household water products from all partners on record as part of the projects overall database. The community level water treatment cluster also uses an accounting system that tracks units disbursed. Life Force Kiosks track sales through daily vendor reports recorded in QuickBooks and backed up with paper copies. Spot checks are also performed on kiosks to ensure proper operations are in place. Alethia s DSW program tracks each chlorine dispenser installed by date and location, recording each unit in a comprehensive electronic database. New dispenser installations are entered electronically using a unique waterpoint identification number, and are tracked by date and location with GPS coordinates. Dispenser installation data entry is done by local administrative staff, and checked by a supervisor. This record can be supplemented by some or all of the following: - Records of skilled labourers hired to assist in dispenser installation, - Bulk chlorine purchases used for on-going chlorine supply refills to keep the dispensers in constant operation - Community leaders, with whom project partners engage to set-up the dispenser, who sign off on installation after completion (leaders are provided with multiple refills of chlorine to ensure sufficient supply) The installation record has been exported to Excel for purposes of integrating into the master project database. With retroactive installations, in the case where the month is known but the exact date is not available, it is conservatively assumed that the installation occurred on the last day of the month the installation was recorded. For this first monitoring period wherein community-level treatment is included, dispenser operation is included from 29 th May 2011 onward 1. Only dispenser usage after the start date is counted, and credits are only generated beginning with 30 th August 2011, the start of the crediting period. Dispenser usage after 29 th May is included for all dispensers installed by DSW in the record; as on-going servicing of the dispenser is a resource-intensive activity that could not be supported without carbon finance, all servicing after 29 th May 2011 is considered additional and therefore creditable. Usage monitoring accounts for drop off as dispensers age. Similarly, kiosk operation is included from 7 th July Annex 27 GS966 ISS 2- Start Date Letter, Community Water Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 9

10 Refills are corroborated by bulk chlorine purchases, which are tracked through receipts collected from vendors. Chlorine refill purchases are entered by the accounting team, and data is checked by a supervisor. Refill deliveries are entered by administrative staff and checked by a supervisor. All files are password protected. 2.2 Co-Benefits This program seeks to reach low-income families, which normally cannot access improved stoves and water treatment technologies due to limited disposable income, awareness of products and supply chains to deliver these products to lowincome customers. Facilitating access to these technologies through subsidies, financing options and community outreach activities provides at least one or more of the following co-benefits: - Environmental benefits from reduced demand for fuel wood, aiding biodiversity and reduced deforestation - Economic benefits from reduced expenditure on fuel, or reduced expenditure/loss of work days from related health issues - Health benefits from reduced exposure to indoor air pollution or water-borne diseases This is an opportunity that was not previously viable or sustainable without carbon finance to help cover project implementation expenses during the credit period. This becomes increasingly true as the cost of raw materials and other manufacturing expenses rise carbon finance is thus an integral component in both ensuring lowincome families ability to afford and access project technologies. Carbon revenues allow the project to secure investment for subsidizing the manufacture and sale of high quality and efficient stoves and water treatment systems. Investment into operations, sales and marketing also allow the project to scale the business and reduce costs for end-users. These savings are directly passed on to the end user in the form of reduced prices, access to technologies, and/or improved product quality. Improved access to these stoves would not exist without the ability to leverage future revenues from carbon finance. The project is committed to changing the household energy paradigm in Kenya from inefficient and unhealthy cooking and water treatment options to efficient improved stoves and clean water treatment technologies. Achieving this shift on a national scale requires sustained marketing campaigns, stove subsidies financed by advanced carbon payments, and creating a comprehensive and far-reaching partnership between the project and distribution networks. The project has begun to transition towards sustainability and growth with the issuance and sale of the first round of emission reduction credits, and looks forward to continued expansion as more carbon revenues become increasingly available. 2.3 Greenhouse Gas Emission Reductions A woman in western Kenya treats her water with chlorine using a Project Dispenser. This project promotes the use of improved energy technologies that reduce greenhouse gas emissions through reduced and more efficient fuel use. This project generates carbon credits in the voluntary market based on the greenhouse gas emission reductions of these technologies. Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 10

11 Table 3. FARs # Issued When? FAR 1 FAR 2 FAR 3 FAR 4 Validatio n Validatio n Validatio n Validatio n By Whom? DNV DNV DNV DNV Description DOE Comments from Validation and Issuance 1 Verification PP Comments, as pertaining to the current verification period (Issuance 2) The PP received a letter of approval to incorporate chemical treatment tablets into the overall project design. However, there is a lack of clarity surrounding appropriate monitoring methodologies for chemical treatment. Emission reductions shall not be claimed for chemical treatment tablets until the Gold Standard issues a chemical treatment directive. Anecdotal evidence obtained from HH surveys during the site visit indicates that stoves are used for space heating during the wet season, and this can lead to leakage. As defined by the methodology, the PP is required to conduct ongoing, quarterly monitoring and this will capture whether leakage is a concern. Please ensure that monitoring occurs in the wet season in each region of the country. In accordance with the methodology requirement that an incentive be put in place to encourage the removal of old stoves, the PP has committed to revising the language on the carbon waiver to inform participants that continued use of traditional stoves reduces the benefits of the project and therefore undermines the benefits that are represented through the stove subsidy. Evidence of this revision should be provided during first verification. The survey data to determine Xboil shall be verified at time of first verification by the DOE. Chemical treatment tablets are not included in this verification. Given the amount of time between validation and verification, the PP was only able to conduct a single monitoring survey, and this did not fall in the wet season. However, the HH surveys conducted during the verification site visit did not identify any evidence to support the leakage concern raised during validation. As the methodology requires quarterly monitoring, the next verification shall include the required monitoring during the wet season. The PP has verbally confirmed their intent to conduct on-going monitoring during the wet season. The PP has provided revised language for the carbon waiver. /24/ The carbon waivers included in this verification included the pre-validation language because the GS had not approved the revised language prior to the completion of the monitoring period. This language will be replaced in future carbon waivers, and should be checked during the second verification. A survey conducted by the PP found that 100% of HH would have boiled more drinking water if they had access to more resources. /31/ DNV confirmed this value during the site visit, as all HH indicated that access to resources limited their consumption of clean drinking water. Furthermore, the act of purchasing a water filter indicates that the HH values clean water. It is therefore reasonable to assume that they would boil more water if the resources were made available. Chemical treatment tablets are not included in this verification. Monitoring is conducted on a quarterly basis and is therefore done in both wet and dry seasons. Stoves are not frequently used for space heating; less than 9% of respondents report using the stove specifically for heating and not for cooking. CRWs were revised to communicate that continued use of traditional stoves reduces the benefits of the project. Specifically, the CRW text states "This warranty is given in exchange for user agreement to dismantle any traditional stoves used in the home in order to realize the environmental benefits of the product." Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 11

12 FAR 5 FAR 6 FAR 7 Validatio n Validatio n Validatio n DNV DNV DNV The DOE shall validate the feedback received and actions taken by PP during each verification. As and when new stove or water filters other than those described in the PDD are added to the project activity, PP shall seek Approval for Project Design Changes from registered project activity by Gold Standard. The DOE shall validate waiver documents during the first verification. During the site visit, DNV asked HHs and stove distributors about the performance of the stove and if they had any complaints or suggestions for improvement. HHs reported a preference for the Envirofit stove because it looked better than the JikoPoa. In response to this feedback, the PP is considering modifications to the design of the JikoPoa to increase market acceptability. As changes to design may impact stove performance, the PP is planning to conduct a series of consumer tests to better understand consumer preferences. The next round of consumer testing is scheduled to take place during the week of 7 November Stove distributors informed DNV that they require more marketing support from the PP in order to increase sales. The PP was well aware of the request and is currently providing demonstration and other marketing support for the distributors (DNV accompanied the PP to a stove demonstration conducted at an agriculture fair during the site visit). The PP is currently considering rebranding their project, including a name change, to increase market recognition, and has assured DNV and stove distributors that marketing materials will be provided when the rebranding is complete. Future verifications should consider the status of the PPs support to stove distributors. All technologies included in this monitoring report were included in the registered PDD. The PP conducted KPTs for two technologies (institutional stoves and water filters) prior to this verification, as approved by the GS during validation. /9//10//11//12 DNV conducted a three-part review of the waiver documents during the site visit. First, DNV reviewed the physical documents stored by the PP as evidence of each stove sold. A random sample of these documents were crosschecked with the sales recorded in the sales database to ensure consistency. No errors were found during this crosscheck. Second, 5 HH were asked to confirm that they signed the carbon waiver document. While no HH were able to produce the document, two respondents recalled signing the document. The 3 respondents who did not recall the document were not involved in the purchase of the stove (often the wife was being interviewed, and it was the husband who purchased the stove). Finally, DNV reviewed the carbon waivers retained by the distributors. A random sample was reviewed to ensure that the required information and signature was present. Furthermore, distributors were asked how many stoves had been sold during the monitoring period, and these numbers were crosschecked with the PPs records to ensure consistency in total quantity of sales. PP has collected user feedback on stoves through venues such as focus groups and has made modifications to the JikoPoa design, such as enamelled paint and removal of the skirt to accommodate user preferences. This modified stove is now in distribution. Moreover, PP has rebranded local operations as EzyLife, which along with more marketing and advertising initiatives, will increase market recognition. PP provides training to dealers, which can be seen in supporting documents such as the CarbonKeeper training. PP has applied and received approval for a design change to include new units in the project activity that were not described in the PDD. This includes new stove technologies as well as the creation of a new cluster for Community Water Treatment. Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 12

13 FAR 8 Validatio n DNV The PP received authorization to complete the Kitchen Test requirements for institutional stoves and water filters prior to first verification DNV reviewed the institutional stove and water filter KTs and can confirm that they were conducted properly. The institutional stove KT was conducted by Berkeley Air Monitoring Group. And the water filter KT was conducted by Dr. Kirubi Gathu at Nairobi Kenyatta University. DNV reviewed the survey methods employed by each group and found them to be acceptable /10//11//12/. DNV also reviewed the spread sheets containing the data and results, and found the statistical calculations were appropriately conducted and the results to be accurately stated. FAR 9 ISS 1 DNV In accordance FAR 3, the PP has committed to revising the language on the carbon waiver to inform participants that continued use of traditional stoves reduces the benefits of the project and therefore undermines the benefits that are represented through the stove subsidy. The revised waiver was not used during this verification because the GS had not approved the revised language prior to the completion of the monitoring period. Future verifications should verify that the correct waivers are in use. Revised waivers are now in use. FAR 10 FAR 1.3 ISS 1 DNV During the verification, DNV realized a mistake in the monitoring plan contained in the PDD. As stated in the PDD, the source of data for the percent of HH stoves and water filters assigned to each respective cluster stated in the PDD is records maintained by the wholesaler. However, the wholesaler will not have this information for HH customers. Instead, the parameter should be determined through surveys. The PP correctly determined the parameter based on surveys for this verification. However, the monitoring plan must be corrected prior to the second verification. ISS 1 GS The GS takes note of the methodological requirements, however as stated before aging stove KTs will be required to be conducted for stoves in age group 1-2. Hence, as a forward action request, the PP is required to conduct appropriate aging-stove KT in the next verification period and adjust the emissions reductions for the stoves in the age group 1-2 in the next monitoring period. Number of units sold, which outline the percent of each technology sold and assigned to each respective cluster, are established in records kept by the initial wholesaler, which is the PP; this includes sales records. Percent of units assigned to sub-clusters of baseline wood and baseline charcoal fuel are determined through the Monitoring Kitchen Survey. The monitoring plan has been updated in the monitoring report to properly reflect this change. PP conducted an Aging Stove KT in the 2nd Monitoring Period to evaluate performance of aging stoves. The KPT, which was done on a biennial schedule for stoves older than Age 2, established a degradation rate for stoves older than Age 2. This value was applied in the Emission Reduction calculator for all stove-years that are Age 2 and beyond, following methodological requirements and past precedent from other projects wherein degradation factors are applied to Emission Reductions on a biennial basis. Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 13

14 3. Monitoring of Parameter Values Table 4 and Table 6 below summarize the current values of all the monitored parameters as defined in the PDD monitoring plan. The source of each value is presented in the table, and the relevant reports are in separate files appended to this document. Parameters are updated according to the monitoring plan. Table 4. Summary of Monitoring Activities Survey Type Performanc e (KPT, WCFT) Monitoring Kitchen Survey (MKS) Usage Survey Baseline Water Boiling Test (BWBT) Water Boiling Test (WBT) Paramete rs Affected B bl,y,c,i, B pj,y,c,i, AF bl,y,c,i, AF pj,y,c,i, F y,c,i, L bl,y,c,i, L pj,y,c,i, Age Factor P y,c, M y,c U y,c,i W bl,b,y,c,i, W bl,af,y,c,i Charcoal Stove Wood Stove Aging KT, Age 2+. Field work conducted by Jacob Kithinji, Oct/Nov Analysis conducted by Berkeley Air. All MKS are conducted on a quarterly basis by EcoScope. Prior to EcoScope s involvement, survey work was conducted by Paradigm s quality assurance staff. Usage Survey conducted in Oct/Nov 2012 by EcoScope and Dr. Jacob Kithinji to determine cumulative percent of stoves in operation across all ages. WBTs were conducted by Dr. Jacob Kithinji in Aug 2012 on new technologies added via Design Change (New JikoPoa, M5000, Ezy) Institutional Stove Aging KT, Age 2+. Field work conducted by Jacob Kithinji, Oct/Nov Analysis conducted by Berkeley Air. All MKSs are conducted on a quarterly basis by EcoScope. Prior to EcoScope s involvement, survey work was conducted by Paradigm s quality assurance staff. Usage Survey conducted in Oct/Nov 2012 by EcoScope to determine cumulative percent of stoves in operation across all ages. PoU Non-Chemical Water Treatment : WCFT not necessary this monitoring period, oldest units are less than 18 months. Next WCFT for this cluster will be conducted on biennial schedule. MKS were conducted in Oct & Dec 2012 by SWAP and Stephen Mumbwani (LFK) with QAQC by Dr. Kirubi Gathu. MKS were also conducted on users who received units in the last monitoring period. Usage Survey conducted in Nov 2012 by SWAP and Stephen Mumbwani (LFK) with QAQC by Kirubi Gathu to determine cumulative percent of units in operation across all ages. Updated BWBT (10 min boil) and analysis conducted for both baseline unimproved wood and charcoal stoves in Dec 2012 by Dr. Kirubi Gathu at Kenyatta University and staff. PoU Chemical Water Treatme nt Community Water Treatment WCFT conducted by DSW and Stephen Mumbwani in Oct/Nov 2012 with follow up surveys conducted in Jan/Feb MKS were conducted in October 2012 by DSW and Stephen Mumbwani (LFK) with QAQC by Dr. Kirubi Gathu. These MKS were the first done on this cluster since this cluster is new to the project per the design change. Usage Survey conducted in Nov/Dec 2012 by DSW and Stephen Mumbwani with QAQC by Kirubi Gathu to determine cumulative percent of units in operation across all ages. Updated BWBT (10 min boil) and analysis conducted for both baseline unimproved wood and charcoal stoves in Dec 2012 by Dr. Kirubi Gathu at Kenyatta University and staff. Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 14

15 Table 5. Summary of Key Default Parameters Item Description Parameter Value Unit 1 CO2 emission factor for wood EF wood,co2 112 (t CO2/TJ) 2 CH4 emission factor for wood EF wood,ch4 0.3 (t CH4/TJ) 3 N2O emission factor for wood EF wood,n (t N2O/TJ) 4 Net calorific value wood NCV wood TJ/ton 5 Biomass conversion factor for charcoal production in Kenya M biomassconv 6.67 t biomass / t charcoal produced 6 Global warming potential CO2 GWP CO2 1 GWP 7 Global warming potential CH4 GWP CH4 21 GWP 8 Global warming potential N2O GWP N2O 310 GWP Monitored Frequency Fixed baseline Fixed baseline Fixed baseline Fixed baseline Fixed baseline Fixed baseline Fixed baseline Fixed baseline Tool IPCC Default IPCC Default IPCC Default IPCC Default Study IPCC Default IPCC Default IPCC Default Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 15

16 Table 6. Summary of Monitored Parameters Parameter Description Item Revised Description Revised Paramet er Unit Frequency Tool HH Wood Stoves Value - where C represents the following Clusters: Institutional Wood Stoves PoU Non-Chemical Water Treatment Community Water Treatment A - Char B - Wood A - 400L B - >400L A - Wood B - Char A - Wood B - Char HH Charcoal Stoves PoU Chemical Water Treatment 1 Number of units installed of technology i in year y to cluster c k y,c,i # units/yr On-going Sales Database 65,937 1, Percent sales of project technology i in year y to cluster c to either baseline fuel group non-wood users or all other users. S y,c,i % Annual Monitoring Kitchen Survey 8.48% 91.52% 89.96% 10.04% 71.79% 28.21% 80.80% 16.00% 3 4 Woody biomass consumed in baseline year y, in cluster c, by technology i Woody biomass consumed in project year y, in cluster c, by technology i B bl,y,c,i B pj,y,c,i t biomass/yr t biomass/yr As necessary Biennial Kitchen Test, or BWBT/WCFT Kitchen Test, or BWBT/WCFT Charcoal consumed in baseline year y, in cluster c, by technology i AF bl,y,c,i t char/yr As necessary Kitchen Test, or BWBT/WCFT Charcoal consumed in project year y, in cluster c, by technology i AF pj,y,c,i t char/yr Biennial Kitchen Test, or BWBT/WCFT Usage of project technologies in place U y,c,i % Biennial Usage Survey 93.78% 95.25% 90.21% 90.90% 8 Performance of water treatment in place F y,c,i % Biennial Performance of biomass stove used in the baseline for treating water by end-users of technology i, in year y, for cluster c Performance of charcoal stove used in the baseline for treating water by endusers of technology i, in year y, for cluster c Performance of biomass stoves used by end-users of project technology i, in the project scenario year y, for cluster c Performance of charcoal stoves used by end-users of project technology i, in the project scenario year y, for cluster c Performance Survey 100% 100% W bl,b,y,c,i t fuel/l Biennial BWBT W bl,af,y,c,i t fuel/l Biennial BWBT W pj,b,y,c,i t fuel/l As required BWBT W pj,af,y,c,i t fuel/l As required BWBT Litres of treated water in the baseline L bl,y,c,i L/p/d Biennial WCFT Litres of treated water still boiled in the project activity 15 Non-renewable biomass in project X nrb,pj,y Percent As required L pj,y,c,i L/p/d Biennial WCFT Default Value: nfccc.int/dn A/fNRB/inde x.html 92% 92% 92% 92% Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 16

17 16 Leakage from project technologies LE pj,c 17 Item Average # of persons per unit in year y in cluster c Revised Description Average number of meals cooked on institutional stoves per day in year "y" in cluster "c" Adjustment for % alternative water treatment tco2e/stov e-lifetime Biennial Study P y,c Persons Biennial Study Revised Paramet er Unit Frequency Tool HH Wood Stoves Institutional Wood Stoves PoU Non-Chemical Water Treatment Community Water Treatment A - Char B - Wood A - 400L B - >400L A - Wood B - Char A - Wood B - Char M y,c Meals/ day Biennial Study 1 1 X boil % As necessary Study or calculated HH Charcoa l Stoves PoU Chemical Water Treatment 71.21% 71.21% 20 Fraction of target population not consuming safe water but would use non boiling treatment X treat % As necessary Study or survey 18.60% 18.60% 21 Fraction of target population previously not consuming safe water X untreated % As necessary Study or survey 54.80% 54.80% 22 Fraction of target population already consuming safe water without boiling C j % As necessary Study or survey 18.60% 18.60% 23 Quantity of safe water in litres consumed person per day in project scenario p and supplied by project technology i, in year y, for cluster c Q p,y L/p/d Biennial WCFT Quantity of raw water boiled person per day in project scenario p by project technology i, in year y, for cluster c Q p,rawboil L/p/d Biennial WCFT 1.2 (per TAC update, June 2012) 25 Quantity of treated water still boiled in the project scenario p per person per day for technology unit i, in year y, in cluster c Q p,cleanbo il L/p/d Biennial WCFT Days per year that stove cooks meals D y,c Days/year Conversion factor to determine tons wood used to produce 1 ton charcoal M biomassc onv twood/tch arcoal Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 17

18 Monitored Parameter Boxes: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be QA/QC procedures to be Any comment: k y,c,i Technology units Number distributed of project technology i in year y to cluster c Sales database Table 7. Annual Unit Sales by Cluster, Ky,c,i Sales Year Charcoal Stove Wood Stove Institutional Stove See Table 7. Annual Unit Sales by Cluster, Ky,c,i Records are kept when units are first sold, distributed or installed by project partners. A representative sample of each quarter s sales will be selected for follow-up by the VER director. The sales will be cross-checked against signed paper delivery notes issued by the transporter upon delivery of stoves. Sales in the Total Sales Database will be cross-checked against paper receipts or electronic records. The sales database for household stoves is an export of data stored in Paradigm accounting software (Xero) that tracks the movement of inventory out of Paradigm warehouse stock to distributors across Kenya. Sales data is currently entered and stored in NetSuite. Any sample stoves that do not represent eventual sales to end users are removed from the database. Sales information for institutional stoves and all water technologies is currently entered on an individual basis at the point of sale, but as volumes for these products grow, their tracking may come to mirror the sales tracking for household wood stoves. No charcoal stoves have been sold yet. PoU Non- Chemical Water Treatment PoU Chemical Water Treatment Community Water Treatment TOTAL , , , , , ,970 TOTAL - 65,937 1, ,440 Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be QA/QC procedures to be S y,c,i Percent Percent sales of project technology i in year y to cluster c to either baseline fuel group non-wood users or all other users. Monitoring Kitchen Surveys See Table 8. Sy,c,i, % of Cluster Sales by Product Monitoring Kitchen Surveys of representative project technology end-users will determine the percentage of total sales in each cluster that fall into either of the baseline fuel type sub-clusters A representative sample of project technologies is selected for the Monitoring Kitchen Survey. A combination of household visits and phone calls to households will determine the percent sales that fall into each Monitoring Report, GS , Iss-2 V6 Paradigm Project and Impact Carbon Page 18