CPA VALIDATION REPORT

Transcription

1 CPA VALIDATION REPORT UPM UMWELT-PROJEKT-MANAGEMENT GMBH CPA Number and Title: SICHUAN RURAL POOR-HOUSEHOLD BIOGAS DEVELOPMENT PROGRAMME CPA NO. SCHHBG POA TITLE: SICHUAN RURAL POOR-HOUSEHOLD BIOGAS DEVELOPMENT PROGRAMME Report No: 14/151-SCHHBG Date: TÜV NORD CERT GmbH JI/CDM Certification Program Langemarckstraße, Essen, Germany Phone: Fax: S01-VA010-F04 Rev.02 /

2 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 CPA Validation Report: Report No. Rev. No. Date of 1 st issue: Date of this rev. 14/151-CPA Component: Title: CPA-DD In. vers.: CPA-DD Fin. vers.: Sichuan Rural Poor-Household Biogas Development Programme, CPA 087. version 1.2 Version 1.3 CPA Details Underlying PoA UNFCCC Ref.-No. CPA No. Sichuan Rural Poor-Household Biogas Development Programme 2898 CPA 087 CME and Project Participants Applied methodology(ies): Validation team / Technical Review and Final Approval Real Case Details Key dates of validation: Summary of Validation Opinion: Project Participants Party CME Annex1 Chengdu Oasis Science & P.R. China Technology Co., Ltd UPM Umwelt-Projekt-Management GmbH United Kingdom Title: No.: Scope/TA: Thermal energy for the user with or without AMS-I.C: ver.19 1/1.1 electricity Methane recovery in agricultural activities at household/small farm level AMS-III.R:ver.02 15/15.2 Validation Team: Technical review: Final approval: ZHAO Xuejiao (TL), LI Xuemei (TE), WANG LI Yongjun Martin Wei (TE) Stefan Winter Saalmann Expected emission reductions over the first (expected) starting CPA Crediting crediting period: date of CPA Period: crediting period 104,490 tco2e years Publication of CPA-DD: Draft Report issued: On-site (from): On-site (to): N/A In detail the conclusions can be summarised as follows: - The component activity is in line with all relevant host country criteria (China) and all relevant UNFCCC requirements for CDM. Project activity (the PoA) approval have been obtained from DNA of china vide the Letter of Approval (HCA) dated and from DNA of United Kingdom dated The baseline has been appropriately identified as per the applied methodology. - The framework for determination project additionality is sufficiently justified in the CPA-DD in line with POA-DD and generic CPA-DD. - All eligibility criteria established for CPA inclusion in the PoA-DD have been sufficiently fulfilled. - The monitoring plan is transparent and adequate. - The calculation of the emission factors and the CPA emission reductions is carried out in a transparent and conservative manner, so that the calculated emission reductions of 104,490tCO2e are most likely to be achieved within the fixed crediting period. - Information on the local stakeholders consultation by the project participants prior to submitting the CPA for validation is sufficiently provided in the CPA-DD, which is in line with POA-DD and generic CPA-DD. - Information on the environmental impact analysis of the CPA is sufficiently provided in the CPA-DD, which is in line with POA-DD and generic CPA-DD. - The CPA Sichuan Rural Poor-Household Biogas Development Programme, CPA 087 shall be included in the PoA Sichuan Rural Poor-Household Biogas Development Programme. Document information: Filename: CDM VAL CPA Inclusion Report-Sichuan HH No. of pages: Page 2 of 92

3 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Abbreviations BAU CA CAAE CAR CDM CER CL CME CO2 CO2e CP CPA CPA-DD DNA DOE EB EIA FAR FSR GHG GSCP IPCC LoA MS NDRC ODA PA PoA-DD PoA-DDs PS QC/QA REOs SREO UNFCCC VVS Business as usual Corrective Action / Clarification Action Chinese Academy of Agricultural Engineering Corrective Action Request Clean Development Mechanism Certified Emission Reduction Clarification Request Coordinating / Managing Entity Carbon dioxide Carbon dioxide equivalent Certification Program Component Project Activity Component Project Activity Design Document Designated National Authority Designated Operational Entities CDM Executive Board Environmental Impact Assessment Forward Action Request Feasibility Study Report Greenhouse gas(es) Global Stakeholder Consultation Process Intergovernmental Panel on Climate Change Letter of Approval Management System National Development and Reform Commission Official Development Assistance Project Activity CDM Programme of Activities Design Document (CDM PoA and CPA) Design Documents Project Standard Quality control/quality assurance Rural Energy Offices Sichuan Rural Energy Office United Nations Framework Convention on Climate Change Validation and Verification Standard Page 3 of 92

4 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Table of Contents Page 1 OBJECTIVE / SCOPE GHG CPA DESCRIPTION CPA Characteristics Involved Parties, Coordinating / managing entity(ies), program participants of the POA and operators of individual CPAs 8 3 METHODOLOGY AND VALIDATION SEQUENCE Validation Steps Contract review Appointment of team members and technical reviewers Validation Protocol Review of Documents Follow-up Interviews Project comparison Resolution of Clarification and Corrective Action Requests Definition Draft Validation Final Validation Technical review / internal quality control Final approval 15 4 VALIDATION FINDINGS VALIDATION ASSESSMENT SUMMARY General Description of the Project Activity Participation Contribution to Sustainable Development Technology to be employed Small Scale Projects Non-debundling Crediting Period Environmental Analysis Local Stakeholder Comments Applied Methodology(ies) Baseline Scenario Sources and GHGs Eligibility Criteria Additionality Determination Emission Reductions 27 Page 4 of 92

5 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA Monitoring Plan Approval and Authorization Project Management Planning Project Documentation / Editorial Aspects Hints for next CPA Inclusion 35 6 VALIDATION OPINION REFERENCES ANNEX 1: VALIDATION PROTOCOL ANNEX 2: ASSESSMENT OF APPLICABILTIY REQUIREMENTS ANNEX 3: ELIGIBILITY CRITERIA COMPLIANCE ANNEX 4: ASSESSMENT OF FINANCIAL PARAMETERS ANNEX 5: ASSESSMENT OF BARRIER ANALYSIS ANNEX 6: STATEMENTS OF COMPETENCE OF INVOLVED PERSONNEL Page 5 of 92

6 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA OBJECTIVE / SCOPE The purpose of a CPA validation is to have an independent third party assess the CDM component project activity (CPA) design. In particular the CPA's baseline, the monitoring plan (MP), and its compliance with - the requirements of Article 12 of the Kyoto Protocol; - the CDM modalities and procedures as agreed in the Marrakech Accords under decision 3/CMP.1 - subsequent decisions made by COP/MOP & CDM Executive Board and - other relevant rules, including the host country legislation and sustainability criteria are validated in order to confirm that the CPA design as documented is sound and reasonable and meets the stated requirements and identified criteria. Validation is seen as necessary to provide assurance to stakeholders on the quality of the project and its intended generation of certified emission reductions (CERs). The validation scope is given as a thorough independent and objective assessment of the CPA design, information that is included in the PDDs and other relevant supporting documents, to ensure that the proposed CDM programme activity meets all relevant and applicable CDM and PoA criteria. The information included in the CPA-DD and the supporting documents were reviewed against the requirements as set out by the UNFCCC. The validation team has, based on the requirements in the Validation and Verification Standard /VVS/, carried out a full assessment of all evidence to assess the compliance of the CPA with the key areas as outlined in section 7 and 8.5 of the VVS. The validation is not meant to provide any consulting to the project participants. However, stated requests for clarifications and/or corrective actions may provide input for improvement of the project design. Page 6 of 92

7 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA GHG CPA DESCRIPTION 2.1 CPA Characteristics Essential data of the project is presented in the following Table 2-1. Table 2-1: CPA Characteristics Item CPA number and title PoA title PoA registration number (if applicable): CPA Host Country / Region: CPA Implementer (Name/ Address) CPA Location Geographic reference (in case of stationary CPA) Other means of identification (in case of mobile CPAs, such as registration number, GPS devices) Data Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG Sichuan Rural Poor-Household Biogas Development Programme 2898 P.R.China/Sichuan province Chengdu Oasis Science & Technology Co., Ltd. Add: Building 2, Entrance 1, 1841, Renmin South Road, Section 4, No. 27 (Sun Dynasty International), Chengdu City, Sichuan Province, P.R. China Sichuan Rural Energy Office Add:Nijiaqiao Road, No. 5,Wuhou District, Chengdu City, Sichuan Province, P.R. China Yibin, Ziyang and Zigong City, Sichuan Province, P.R. China ' ' E and 27 50'-29 38' N None CPA size Large Scale Small Scale CPA Scope (according to UNFCCC sectoral scope numbers for CDM) Applied Methodology(ies) title and version 1 Energy Industries (renewable- /non-renewable sources) 2 Energy distribution 3 Energy demand 4 Manufacturing industries 5 Chemical industry 6 Construction 7 Transport 8 Mining/Mineral production 9 Metal production 10 Fugitive emissions from fuels (solid, oil and gas) Fugitive emissions from production and consumption of 11 halocarbons and hexafluoride 12 Solvents use 13 Waste handling and disposal 14 Afforestation and Reforestation 15 Agriculture AMS I.C - Thermal energy for the user with or without electricity (Version 19); AMS III.R Methane recovery in agricultural activities at household/small farm level (Version 2) Page 7 of 92

8 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Item Data PoA Duration 28 years Registration date Start date of the PoA crediting period End date of the PoA crediting period PoA-DD GSCP date Starting date of the CPA CPA Crediting period Renewable Crediting Period (7 y) Fixed Crediting Period (10 y) Start of crediting period of the CPA End of fixed crediting period of the CPA Estimated CPA emission Annual average 10,449 tco 2e reductions over the first Total estimation over the 104,490 tco 2e crediting period crediting period 2.2 Involved Parties, Coordinating / managing entity(ies), program participants of the POA and operators of individual CPAs The following parties to the Kyoto Protocol and project participants are involved in this PoA (Table 2-2). Table 2-2: PoA Parties and project participants Host Chengdu P.R. China Country/ies Annex 1 UPM United Kingdom Country/ies Name of Party/ies Name of the Entity/ies Private or Public Oasis Science & Technology Co., Ltd Umwelt-Projekt- Management GmbH Public Private CME Technical CPA Description The measure to be employed under this CPA is the installation of small biogas digesters according to national standard NY/T The typical digester under this CPA 087 consists of an inlet, inlet pipe, fermentation chamber, gas storage chamber, hydraulic chamber, movable cover and a gas type. The inlet is directly connected with the barn of the animals (pigs). The produced biogas is utilized by farmers for cooking. Therefore each household will be equipped with a connection pipe and a biogas cook stove. For utilization of the biogas in the stove each utilization system contains a desulphurization and dehydration unit to extract harmful substances. The technical key data are provided in table 2-3 below. Page 8 of 92

9 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Table 2-3: Technical data of the CPA Equipment Parameter Unit Value Capacity of m³ 6, 8,10 fermentation Digester chamber Number of - 4,601 Householders Fermentation chamber Manure retention time - Several months Capacity kw 3.26 Stove (average) Rated Heating - > 55% Efficiency Page 9 of 92

10 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA METHODOLOGY AND VALIDATION SEQUENCE 3.1 Validation Steps The validation of the CPA consists of the following steps: Contract review Appointment of team members and technical reviewers A desk review of the CDM-SSC-CPA-DD /CPA- and supporting documents Validation planning, On-Site assessment, if applicable Background investigation and follow-up interviews with personnel of the project developer and its contractors, Draft validation reporting Resolution of corrective actions (if any) Final validation reporting Technical review Final approval of the validation. 3.2 Contract review To assure that the CPA falls within the scopes for which accreditation is held, the necessary competences to carry out the validation can be provided, Impartiality issues are clear and in line with the CDM accreditation requirements a contract review was carried out before the contract was signed. 3.3 Appointment of team members and technical reviewers On the basis of a competence analysis and individual availabilities a validation team, consistent of one team leader and 2 additional team members, as well as Technical Review personnel were appointed. The list of involved personnel, the tasks assigned and the qualification status are summarized in the table 3-1 below. Page 10 of 92

11 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Table 3-1: Involved Personnel Name Company Function 1) Qualification Status 2) Scheme Competence 3) Technical Competence 4) Verification Competence 5) Host country Competence On-site visit Mr. Ms. ZHAO, Xuejiao Mr. Ms. WANG, Wei TÜV NORD Cert GmbH TÜV NORD Cert GmbH TL LA - TM TE 1.1 Mr. Ms. LI, Xue Mei TN China TM TE 15.2 Mr. Ms. LI Yongjun TÜV NORD Cert GmbH OR SA - Mr. Ms. Stefan Winter TÜV NORD Cert GmbH TR SA Mr. Ms. Martin Saalmann TÜV NORD Cert GmbH FA SA - 1) TL: Team Leader; TM: Team Member, TR: Technical review; OT: Observer-Team, OR: Observer-TR; FA: Final approval 2) GHG Auditor Status: A: Assessor; LA: Lead Assessor; SA: Senior Assessor; T: Trainee; TE: Technical Expert 3) GHG auditor status (at least Assessor) 4) As per S01-MU03 or S01-VA070-A2 (such as 1.1, 1.2, ) 5) In case of verification projects A) Team Member: GHG auditor (at least Assessor status), Technical Expert (incl. Host Country Expert or Verification Expert), not ETE B) No team member All team members contributed to the review of documents, the assessment of the project activity and to the preparation of this report under the leadership of the team leader. Technical Experts contributed to the assessment of special aspects of the project activity, e.g. technical or host country aspects. Statements of competence for the above mentioned team members are enclosed in annex 6 of this report. 3.4 Validation Protocol In order to ensure consideration of all relevant assessment criteria, a validation protocol is used. The protocol shows, in a transparent manner, criteria and requirements, means of validation and the results from pre-validating the identified Page 11 of 92

12 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 criteria. The validation protocol reflects the generic CDM requirements as well as PoA and CPA specific issues which have to be met by the PoA and the proposed CPAs. The validation protocol serves the following purposes: - It organises, details and clarifies the requirements that a CPA is expected to meet; - It ensures a transparent validation process where the validating entity will document how a particular requirement has been validated and the result of the determination. The validation protocol as described in Figure 1. Validation Protocol Table A-1: Requirement checklist Checklist Item Referenc e Validation Team Comment Draft Conclusion Final Conclusion The checklist items in Table A-1 are linked to the various requirements the project should meet. The checklist is organised in various sections. Each section is then further sub-divided as per the requirements of the topic and the individual project activity. Gives reference to the information source on which the assessment is based on Figure 1: Validation protocol table The section is used to elaborate and discuss the checklist item in detail. It includes the assessment of the validation team and how the assessment was carried out. The reporting requirements of the VVS shall be covered in this section. Assessment based on evidence provided if the criterion is fulfilled (), or a CAR, CL or FAR (see below) is raised. The assessment refers to the draft validation stage. In case a corrective action or a clarification the final assessment at the final validation stage is given. The completed validation protocol is enclosed in Annex 1 to this report. 3.5 Review of Documents The initial CPA-DD (version 1.2) and supporting background documents related to the CDM programme activity design and baseline were reviewed. Furthermore, the validation team used additional documentation by third parties like host party legislation, technical reports referring to the CDM programme activity design or to the basic conditions and technical data. 3.6 Follow-up Interviews The validation team has carried out interviews in order to assess the information included in the programme documentations and to gain additional information regarding the compliance of the CPA with the relevant criteria applicable for CDM. During validation, the validation team has performed interviews to confirm selected information and to resolve issues identified in the document review. The main topics of the interviews are summarized in table 3-2. Page 12 of 92

13 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Table 3-2: Interviewed persons and interview topics Interviewed Persons / Entities Interview topics Project Participants (PPs), Cooperating Managing Entity (CME), CPA operators representatives Project consultants Stakeholders (local farmers) - Chronological description of the CDM program activity with documents of key steps of the implementation. - Current status of CPA design - Technical details of the CPA realization, CPA feasibility, designing, operational life time, monitoring of the CPA - Host Government Approval - Approval procedures and status - Monitoring and measurement equipment and system - Financial aspects - Crediting period - CPA activity starting date - CER allocation / ownership - Baseline study assumptions - Additionality - Sustainable development issues - Monitoring of CPAs - Analysis of local stakeholder consultation - Roles & responsibilities of the project participants w.r.t. CPA management, monitoring and reporting - National Legislation - Editorial issues of the CPA -DD A comprehensive list of all interviewed persons is part of section 7 References. 3.7 Project comparison The validation team has compared the proposed PoA activity with similar CPAs or CDM projects / technology that have similar or comparable characteristics and with similar projects in the host country in order to achieve additional information esp. regarding: CPA technology Eligibility issues Reasons for reviews, requests for reviews and rejections within the CDM registration process. 3.8 Resolution of Clarification and Corrective Action Requests Definition A Corrective Action Request (CAR) will be established where: Page 13 of 92

14 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 mistakes have been made in assumptions, application of the methodology or the programme documentation which will have a direct influence on the programme results, the requirements deemed relevant for validation of the PoA with certain characteristics have not been met or there is a risk that the programme would not be registered by the UNFCCC or that emission reductions would not be able to be verified and certified. A Clarification Request (CL) will be issued where information is insufficient, unclear or not transparent enough to establish whether a requirement is met. A Forward Action Request (FAR) will be issued when certain issues related to programme implementation should be reviewed during the first verification of each CPA Draft Validation After reviewing all relevant documents and taken all other relevant information into account, the validation team issues all findings in the course of a draft validation report and hands this report over to the project participants in order to respond on the issues raised and to revise the CPA documentations accordingly Final Validation The final validation starts after receiving the proposed corrective actions (CAs) to the CARs, CLs and FARs from the project participant. The CME has to reply on those and the requests are closed out by the validation team in case the response is assessed as sufficient. In case of raised FARs the project participant has to respond on this, identifying the necessary actions to ensure that the topics raised in this finding are likely to be resolved at the latest during the first verification of each CPA. The validation team has to assess whether the proposed action is adequate or not. In case the findings from CARs and CLs cannot be resolved by the project participant or the proposed action related to the FARs raised cannot be assessed as adequate, no positive validation opinion can be issued by the validation team. The CAR(s) / CL(s) / FAR(s) are documented in chapter 4. This CPA validation report includes information regarding how TÜV NORD has determined that the CPA is eligible for inclusion under the PoA. 3.9 Technical review / internal quality control Before submission of the final validation report a technical review of the whole validation procedure is carried out. The technical reviewer is a competent GHG auditor being appointed for the scope this CPA falls under. The technical reviewer is not considered to be part of the validation team and thus not involved in the decision making process up to the technical review. Page 14 of 92

15 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 As a result of the technical review process the validation opinion and the topic specific assessments as prepared by the validation team leader may be confirmed or revised. Furthermore reporting improvements might be achieved Final approval After successful technical review of the final report an overall (esp. procedural) assessment of the complete validation will be carried out by a senior assessor located in the accredited premises of TÜV NORD. Only after this step the request for registration can be started (in case of a positive validation opinion). Page 15 of 92

16 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA VALIDATION FINDINGS Table 4-1: CPA-PDD versions used for assessments Version No. CPA-DD version 1.2 dated DOE Findings CPA-DD version 1.3 dated DOE Assessment # 1 Assessment Round In the following table the findings from the desk review of the published POA-DDs, visits, interviews and supporting documents are summarised: Table 4-2: Summary of CARs, CLs and FARs issued Validation topic 1) No. of CAR No. of CL No. of FAR CDM-CPA-DD General Description of the Component Project Activity (A) - Title of the proposed or registered PoA - Title of the CPA - Description of the CPA - Entity/individual responsible for CPA - Technical Description of the CPA - Party(ies) - Geographic reference - Duration of the CPA - Choice of the crediting period - Start date of the crediting period - Length of the crediting period - Estimated amount of GHG emission reductions - Public Funding of the CPA - Debundling of SSC CPAs - Confirmation for CPA Environmental Analysis (B) - Analysis of the environmental impacts - Environmental impact assessment (LSC only) Local Stakeholder comments (C) - Solicitation of comments from local stakeholders - Summary of comments received - Report on consideration of comments received Page 16 of 92

17 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Validation topic 1) No. of CAR No. of CL No. of FAR Eligibility of CPA and Estimation of Emission Reductions (D) - Title and reference of methodology(ies) selected - Application of methodologies - Sources of GHGs - Description of the baseline scenario - Demonstration of eligibility - Estimation of Emission Reductions - Application of the monitoring methodology and description of the monitoring plan Approval and Authorization (CPA-E) Other aspects (CPA-F): - Information displayed in the appendixes - CPA-DD editorial aspects SUM ) The letters in brackets refer to the validation protocol The following tables include all raised CARs, CLs and FARs. For an in depth evaluation of all validation items it should be referred to the validation protocols (see Annex 1). The findings of validation process are summarized in the tables below. Finding Classification CAR CL FAR Description of finding It is observed that the list of equipment involved, and load factors, Describe the finding in unambiguous style; address the efficiencies of the equipment is not illustrated in section A.5. context (e.g. section) Associated checklist question(s): A.5 Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. In case the CPA-DD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. A1 The main parts of the project are biogas digesters, pipes and biogas stove. The main equipment is biogas stove. Biogas will be fed into a biogas stove that can be used for cooking purposes, and thereby replace coal as fuel. The biogas stove meets the national standard and has the rated heating efficiency above 55%. Such information has been included in section A.5 of CPA DD v1.3. Changes in CPA-DD Section(s): A.5 New version No.: 1.3 Changes in XLS Worksheet(s): New version No.: Page 17 of 92

18 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Finding DOE Assessment #1 The assessment shall encompass all open issues in annex A- 1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox A1 The test reports of the biogas stoves /TRE/ and national standard /STAN/ have been checked, it is confirmed that the rated heating efficiency is above 55%. And the technical description in A.5 of CPA DD v1.3 is material correct. Hence it is confirmed that the equipment involved, and efficiencies of the equipment are illustrated in section A.5. CAR A1 is closed out. To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Finding Classification CAR CL FAR Description of finding It is observed that the geographic boundary of the CPA is not clear Describe the finding in unambiguous style; address the in Figure 2. context (e.g. section) Associated checklist question(s): A.7 Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. In case the CPA-DD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. DOE Assessment #1 The assessment shall encompass all open issues in annex A- 1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox A2 Yes, the geographic boundary of the CPA has been highlighted in CPA-DD, see Figure 2 of CPA-DD v1.3. Changes in CPA-DD Section(s): A.7 New version No.: 1.3 Changes in XLS Worksheet(s): New version No.: The revised CPA-DD has been checked, it is confirmed that the geographic boundary of the CPA has been highlighted and correct. Furthermore, the Sichuan Province Map /spm/ is cross-checked, the geographic boundary of this CPA is in line with the official map. Hence, it is confirmed that the geographic boundary of the CPA is clear. CAR A2 is closed out. To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Finding Classification CAR CL FAR Description of finding Describe the finding in unambiguous style; address the Associated checklist question(s): A.8.1 The evidence of starting date of the CPA is not provided. context (e.g. section) A3 Page 18 of 92

19 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Finding Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. In case the CPA-DD is changed as part of the CA, the PP is requested to indicate the revised sections as well as the new version No. DOE Assessment #1 The assessment shall encompass all open issues in annex A- 1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox A3 The starting date is the date at which the implementation of biogas units under the CPA will start or has started. The household list, incl. household name, address, construction date, implementation date, etc has been provided by the SREO with the statement that the provided household information is real and reliable. The relevant evidences have been provided to the DOE for review. Changes in CPA-DD Section(s): New version No.: Changes in XLS Worksheet(s): New version No.: The household list /LIST/ has been checked, it is confirmed that the earliest implementation date of biogas units under the CPA is And it is also confirmed via on-site interview with the local household /IM03/ on a random basis. Hence it is concluded that evidence of starting date of the CPA is provided. And the starting date of the CPA is correct and reasonable. CL A3 is closed out. To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Finding Classification CAR CL FAR Description of finding The LOA for proposed CPA from the host country is pending during Describe the finding in unambiguous style; address the draft validation stage. context (e.g. section) Associated checklist question(s): E.1 Corrective Action #1 Provided to DOE. This section shall be filled by the PP. It shall address the corrective action taken in details. In case the CPA-DD is changed as part of the CA, the PP is requested to indicate the revised Changes in CPA-DD Section(s): New version No.: sections as well as the new version No. Changes in XLS Worksheet(s): New version No.: E1 Page 19 of 92

20 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Finding DOE Assessment #1 The assessment shall encompass all open issues in annex A- 1. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. E1 The validation team has checked the Letters of Approval (LOA) from host country as described in section of the CPA-DD in detail and confirms that Letters of Approval (LOA) from host country have been provided by the CME. Letters of Approval (LOA) from host country is considered valid as the following could be confirmed: DNA are listed on the UNFCCC website. China have duly ratified the Kyoto protocol. Letters of Approval (LOA) from host country confirm that the participation is voluntary. Letters of Approval (LOA) from host country confirms that the PoA/CPA contributes to the sustainable development of the country. Letters of Approval (LOA) from host country is unconditional. The name of the PoA/CPA as well as the CME are correct in Letters of Approval (LOA) from host country. Hence, CAR E1 is closed out. Conclusion Tick the appropriate checkbox To be checked during the first periodic verification Additional action should be taken (finding remains open) The finding is closed Page 20 of 92

21 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA VALIDATION ASSESSMENT SUMMARY The following paragraphs include the summary of the final validation assessments after all CARs and CLs are closed out. For details of the assessments pl. refer to the discussion of the validation findings in chapter 4 and the validation protocol (Annex 1). 5.1 General Description of the Project Activity Participation Project Participants, CME and CPA implementer(s) The PoA CME (Coordinating and Managing Entity) is Chengdu Oasis Science & Technology Co., Ltd. which is authorized as China s Project Participant. Another project participant is UPM Umwelt-Projekt-Management GmbH., which is authorized by the DNA of United Kingdom. Information regarding project participants is confirmed as consistent in the PoA-DD /PoA-, CPA-DD /CPA-DD-R/ and LOAs /HCA/&/LoA/. The CPA will be implemented by two entities as below: 1. Chengdu Oasis Science & Technology Co., Ltd. (also acting as the CME) 2. The Sichuan Rual Energy office Contribution to Sustainable Development The host country (China) DNA approves that the PoA comply with the permission requirements provided for in the Measures for Operation and Management of Clean Development Mechanism Project in China, and assists China in achieving sustainable development /HCA/. The HCA was issued on by China DNA Technology to be employed The description of the CPA is complete, accurate and in compliance with the PoA-DD and generic CPA-DD template and guidelines. The CPA will install small biogas digesters, feeding by the manure from pig husbandry, which further produces biogas mainly consisting of methane and is used for cooking via cook stove. The CPA is designed to enable the poor population of the rural areas in Sichuan to participate in the existing biogas subsidy programme provided by the Sichuan Rural Energy Office. Prior to the installation of the biogas digesters the manure from the pig husbandry is stored in open pits deeper than 1m. Therefore the manure was stored mainly under anaerobic conditions and generated GHG is emitted into the atmosphere. Further in the baseline situation the farmers/households used coal (raw coal or honeycomb coal) as fuel for cooking. By implementing of the CPA, the biogas (mainly consisting of CH4) is collected and destroyed. Finally additional GHG emissions (CO2) are reduced as the utilization of biogas substitutes the use of fossil fuel coal for cooking. Page 21 of 92

22 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Besides, as the construction and installation of the technology employed has to follow national standards and regulations, it is confirmed as environmentally safe and sound. The CPA will bring social benefits as employment and sanitation, environmental benefit by pollutant prevention, economic benefit. The adopted technology is business-asusual and environmentally safe and sound. Furthermore, all main equipment in the CPA is domestically produced; the proposed CPA involves no technology and installations from abroad. The description of the CPA is complete, accurate and in compliance with the PoA-DD and CPA-DD templates and guidelines Small Scale Projects The value of annual emission reductions of every CPA proposed under this PoA is no more than 60 kt CO2 equivalent annually for the type III component and the rated capacity of the installed equipment (cook stove) at each household is no more than 3.26kW and therefore below the type I threshold of 15MWel or 45MWth. The ex-ante estimated total emission reduction for this first proposed CPA is 10,449 tco2e annually, which is confirmed as less than 60kt CO2 equivalent annually; therefore, the proposed CPA meets the small scale criteria. Moreover, the CPAs will be designed in a way that the number of householder which takes part within a CPA is below a certain number to ensure that both thresholds are met. Eligibility criteria are established which demand even lower threshold limits than those to be applicable as a small scale CPA. These are criteria w.r.t. demonstration of additionality, eligibility criteria and As these thresholds are 20ktCO2e per year w.r.t. type III and 5MWel or 15MWth. As those criteria are met DOE can confirm that the CPA is a small scale CPA Non-debundling The CME has substantiated that the CPA is not a de-bundled component of large scale project through application of the paragraph 10 of applicable EB 54, Annex 13 - "Guidelines on Assessment of Debundling for SSC Project Activities" (version 03). As elaborated bellow: a) There is neither same activity implementer as the proposed small scale CPA nor a coordinating or managing entity, which also manages a large scale PoA of the same technology/measure in Sichuan province, and; b) No CDM or PoA project was detected, whose boundary is within 1 km of the boundary of the proposed small-scale CPA, at the closest point Crediting Period The start of the fixed crediting period is unambiguously stated in the CPA-DD, i.e and this is deemed appropriate. 5.2 Environmental Analysis Page 22 of 92

23 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Environmental Analysis is chosen to be done at PoA level. The EIA had carried out in accordance with the requirements in host country, all the environmental aspects for instance like, the resource, wastewater, air pollution, noise and solid waste during the project preparation, construction and operation period have been clearly described in PoA-DD and the CPA-DD. Neither significant environmental impacts nor transboundary impacts have been observed. 5.3 Local Stakeholder Comments The PP followed the invitation procedure for stakeholder comments on the PoA level in line with relevant requirements. Therefore no further action on CPA-level is required. 5.4 Applied Methodology(ies) By consultation of the UNFCCC website, it is confirmed that the Approved methodologies for small-scale CDM project: AMS-I.C: Thermal energy production with or without electricity (version 19); AMS-III.R: Methane recovery in agricultural activities at household/small farm level (version 02). are applicable to the proposed PoA and CPA (AMS-III.R since its first approval in EB35, October 2007 and AMS-I.C. since EB33, July 2007). The combination of the methodologies AMS-III.R and AMS-I.C has been approved for the use within PoAs by the CDM Executive Board (EB) in its 53 th meeting. The versions of both CDM Methodologies approved by EB are valid during submission for registration. As per the applied methodology AMS.III.R, the approved methodology for small-scale CDM project AMS.III.D. Methane recovery in animal manure management systems (version 17) shall be used to calculate baseline and project emissions. To calculate emissions from fossil fuel combustion, the Tool to calculate project or leakage CO2 emissions from fossil fuel combustion (version 02) is used. The methodology and tools are available at: Furthermore, all applicability conditions of the applied methodology have been met and the PoA design is in line with all requirements and stipulations mentioned in all sections of the applied methodology. Besides, the PoA design is not expected to result in significant emissions related both to project and leakage, other than those listed in the methodology. Related eligibility criteria w.r.t. the applicability of the methodologies have been established and met by the CPA. Refer to Annex 3 of this report for details. Page 23 of 92

24 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA Baseline Scenario The procedure to identify the most plausible baseline scenario derived from the applied methodology has been applied correctly and is transparently and sufficiently documented in the PoA-DD and CPA-DD. The baseline is predefined in the corresponding methodologies. The baseline scenario is therefore correctly defined as: As per AMS.I.C 13. For renewable energy technologies that displace technologies using fossil fuels, the simplified baseline is the fuel consumption of the technologies that would have been used in the absence of the project activity times an emission factor for the fossil fuel displaced. For calculating the emission factor, reliable local or national data shall be used. IPCC default values shall be used only when country or project specific data are not available or demonstrably difficult to obtain. As per AMS.III.R 9. The baseline scenario is the situation where, in the absence of the project activity, biomass and other organic matter are left to decay anaerobically within the project boundary and methane is emitted to the atmosphere. Baseline emissions (BEy) are calculated ex ante using the amount of the waste or raw material that would decay anaerobically in the absence of the project activity, with the most recent IPCC tier 2 approach (please refer to the chapter Emissions from Livestock and Manure Management under the volume Agriculture, Forestry and other Land use of the 2006 IPCC Guidelines for National Greenhouse Gas Inventories). Country/regional-specific values shall be used if available. The option in paragraph 9 (a) and relevant formulae shown in paragraph 10 of AMS-III.D Methane recovery in animal manure management systems shall be used to calculate baseline emissions. DOE confirms that all plausible alternatives have been identified and the non-plausible alternatives have been properly justified and excluded. It has been assessed that the identified baseline scenario is plausible, conservative and reasonably represents what would occur in the absence of the proposed PoA, and the approved methodology used is applicable to the identified baseline scenario. For a detail assessment of the baseline, please refer to Annex 1 and 3. To ensure that the CPA complies with the baselines as described above eligibility criteria has been established. Page 24 of 92

25 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA Sources and GHGs The boundaries (geographically and related to GHG sources / sinks) are correctly given in section A of the PoA-DD. The geographical boundary of this PoA is Sichuan Province and the physical boundary of a typical measure under this PoA is a rural household including its pig barns, manure storage, digester, biogas stove and digestive application. As per AMS.I.C (version 19) the boundary of the CPA of this PoA is (a) (b) (c) (d) (e) All plants generating power and/or heat located at the project site, whether fired with biomass, fossil fuels or a combination of both; All power plants connected physically to the electricity system (grid) that the project plant is connected to; Industrial, commercial or residential facility, or facilities, consuming energy generated by the system and the processes or equipment affected by the project activity; The processing plant of biomass residues, for project activities using solid biomass fuel (e.g. briquette), unless all associated emissions are accounted for as leakage emissions; The transportation itineraries, if the biomass is transported over distances greater than 200 kilometres, unless all associated emissions are accounted for as leakage emissions; And additionally as per AMS.III.R, the project boundary is defined as: The project boundary is the physical, geographical site of the methane recovery and combustion systems. The information has been also correctly given in section A of the real case CPA- DD. The methodology AMS.I.C indicates CO2 and AMS.III.R CH4 are the GHG sources to be included in the boundary; the DOE confirms that the justification by the PP is reasonable and evidenced. Besides, there are no other sources which are impacted by the project and not addressed by the applied methodology. The physical delineation of the first CPA under the PoA and the description of the emission sources and GHGs that are included in the CPA boundary are appropriate for the purpose of calculating project and baseline emissions for the first CPA. 5.7 Eligibility Criteria Page 25 of 92

26 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 A complete list of CPA Eligibility Criteria has been set up in section A of the PoA- DD and section B.2 of the generic CPA-DD, and section D.5 of the CPA-DD SCHHBG has demonstrated the compliance and fulfilment on the established CPA inclusion Eligibility Criteria with sufficient justification and evidences. DOE confirms that all Eligibility Criteria are sufficiently fulfilled with appropriate evidences. For detailed assessment, please refer to Annex 3 of this validation report. 5.8 Additionality Determination Consideration of CDM in decision making The first CPA starting date ( ) is defined as per CDM glossary of term, and is later than the commencement of validation of the PoA, i.e., the date on which the PoA-DD is first published for global stakeholder consultation ( ), thus as per paragraph 7(d) of PoA Procedures (version 04.1, EB55 Annex 38) and paragraph 2 of Guidelines on the Demonstration and Assessment of Prior Consideration of the CDM (EB49 Annex22), the DOE has determined that the CDM was seriously considered in the decision to implement the project activity. Application of methodology / methodological tools The additionality is based on the EB Annex Guidance for Microscale Projects. As an individual system to be installed under this PoA reduces GHG emissions due to substitution of fossil fuel consumption as well as due to methane destruction the corresponding thresholds for Type I and Type III are to be followed. As per 8 of EB60 Annex 25 a project activity (CPA) with more than one component, each of the component has to meet the microscale threshold. Further the sum of the components of a project activity (CPA) belonging to the same type shall not exceed the limits for microscale project activities. The thresholds applicable under this PoA are therefore: For Type I: 5MWel equivalent to 15MWth For Type III: 20ktCO2e Emission Reduction. The DOE has checked related Guidance EB60 Annex 25 and General Guidelines to SSC CDM methodologies and confirms that related thresholds are established correct. PoA-DD section E.5.1 discusses and specifies the corresponding paragraphs of EB60 Annex 25. Further the PoA-DD under section A and E.5.2 criteria are established which ensure that any CPA under this PoA will meet corresponding threshold limits. The criteria are also established in a way to address 8 c. of EB60 Annex 25 (version 02), which is in accordance with EB68 Annex 26 (version 04) The corresponding criteria and as per PoA-DD section A and CPA-DD section B.2 related evidence are given. Page 26 of 92

27 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Summary CDM was seriously considered by the CME before the starting of the project activity. All the arguments and parameters w.r.t. the demonstration of additionality in the CPA- DD are well evidenced. Therefore, the project is additional. 5.9 Emission Reductions The CPA-DD applies steps and equations to calculate project emissions, baseline emissions, leakage and emission reductions as per the requirements of the applied methodology. For the calculation of the GHG emission reductions the correct equations have been used reflecting the methodological choices. Following equations are used for the calculation of the emission reductions: The emission reduction is calculated as baseline emission deducted by project emission and leakage. Baseline Emissions: BE CH4,y = GWP CH4 D CH4 UF b MCF j B 0,LT N LT,y VS LT,y MS% Bl,j j,lt = 3,709 tco 2e Where: BE CH4,y Baseline methane emissions in year y (tco 2e) GWP CH4 Global Warming Potential for CH 4 (25(tCO 2e/tCH 4) D CH4 CH 4 density ( t/m 3 at room temperature (20 o C) and 1 atm pressure) UF b Model correction factor to account for model uncertainties (0.94) j Index for animal manure management system. As according to the applicability criteria - all households use pits to store the animal manure, this index is used for the different climate conditions on a city basis. LT Index for all types of livestock MCF j Annual methane conversion factor (MCF) for the baseline animal manure management system j. To pay respect to different annual mean temperatures in the covered region, the pits in different cities are considered different manure management systems with different MCF values. For CPA that include households locate in different temperature area, the MCF for each household had been calculated per its temperature region in the ER spreadsheet. B 0,LT Maximum methane producing capacity for the volatile solid generated for animal type LT (m 3 CH 4(kgdm) -1 ) N LT,y Annual average number of animals of type LT in year y (numbers). The number of animals will be determined based on city averages of the number of pigs per households and the number of households in each city (=climatic region). VS LT,y Volatile solids for livestock LT entering the animal manure management system in year y (on a dry matter weight basis, kg dm/animal/year) Page 27 of 92

28 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 MS% Bl,j Fraction of manure handled in baseline animal manure management system j. As the index j is covered the different climate conditions of the cities, this fraction reflects the share of animals in a climatic region to the total number of animals. Where: BE CO2,y FC i,j,y COEF i,y BE CO2,y = FC BE,i,j,y COEF i,y i Baseline carbon dioxide emissions from fossil fuel combustion in year y (tco 2e) Quantity of fuel type i combusted in process j during the year y (mass volume or volume unit/yr). For this project, only baseline emissions from domestic use coal are considered in the calculation of emission reductions. This is a conservative approach that results in i and j being reduced to 1 (i: coal is the only type of fuel; j: only domestic coal consumption is considered). Is the CO 2 emission coefficient of fuel type i in year y (tco 2/mass or volume unit). This will be calculated using national data. As the available data is not sufficient for option A, offered by the tool to calculate COEF i,y, option B is chosen: COEF i,y = NCV i,y EF CO2,i,y The baseline emissions covered by methodology AMS I.C can be reduced to: BE CO2,y = FC BE,y NCV coal,y EF CO2,coal,y =8,134 tco 2e Where: BE CO2,y FC BL,y NCV coal,y EF CO2,coal,y Baseline carbon dioxide emissions from fossil fuel combustion in year y (tco 2e) Quantity of coal combusted for domestic use in year y (mass volume or volume unit/yr). Is the CO 2 emission coefficient of coal in year y (tco 2/mass or volume unit). Is the weighted average CO 2emission factor of raw coal in year y (tco 2/GJ). According to the national data, the emissions factor for raw coal is 87,300 tco 2/TJ. This value reflects the lower value of the 95% confidence level of the values provided in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and is therefore conservative. Project Emissions: According to AMS.III.R paragraphs 7 and 8, the calculation method to determine the PEy is indicated in paragraph 13 of AMS-III.D. AMS-III.D, the first option (13 (a)) is chosen to calculate the project emissions. Following this paragraph, a physical leakage of 10% of the maximum methane Page 28 of 92

29 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 producing potential of manure fed into the management systems implemented by the project activity is assumed. AMS.I.C: PE CH4,y = 0.10 GWP CH4 D CH4 B 0,LT N LT,y VS LT,y MS% i,y = 1,165 tco 2e i,lt Similar to the baseline emissions from fossil fuel, the project emissions will be calculated: PE CO2,y = FC PE,y COEF i,y i Where: PE CO2,y Project carbon dioxide emissions from fossil fuel combustion in year y (tco 2e) FC PE,y Quantity of fuel type i combusted in process j during the year y (mass volume or volume unit/yr). COEF i,y Is the CO 2 emission coefficient of fuel type i in year y (tco 2/mass or volume unit). This will be calculated using national data. The possible project emissions from electricity or other sources that are listed in the methodology are not applicable, as no electricity consumption occurs and not other greenhouse gases are emitted by the project activity. According to the explanations for the baseline emissions, this equation can be further developed to: PE CO2,y = FC PE,y NCV coal,y EF CO2,coal,y Where: PE CO2,y FC PE,y NCV coal,y EF CO2,coal,y = 229 tco 2e Baseline carbon dioxide emissions from fossil fuel combustion in year y (tco 2e) Quantity of coal combusted for domestic use in year y (mass volume or volume unit/yr). Is the CO 2 emission coefficient of coal in year y (tco 2/mass or volume unit). Is the weighted average CO 2 emission factor of raw coal in year y (tco 2/GJ). According to the national data, the emissions factor for raw coal is 87,300 tco 2/TJ. This value reflects the lower value of the 95% confidence level of the values provided in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and is therefore conservative. Leakage emissions: No leakage is considered as no equipment is transferred from or to another activity as well as no collection/processing/transportation of biomass residues from outside the project boundary to the project sites occur. This is confirmed by onsite visit. Further leakage emission due to competitive use of biomass residue has been set to zero as the biomass residue, manure, under this PoA is not applied otherwise in the baseline. As under the baseline the digestive is applied as fertilizer for agriculture. Page 29 of 92

30 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Emission Reduction: The emission reduction due to reduced coal consumption based on AMS.I.C is calculated as: ER CO2,y = BE CO2,y PE CO2,y Leakage = 8,134 tco 2e tco 2e -0 = 7,905 tco 2e The emission reduction due to reduced coal consumption based on AMS-III.R is calculated as: ER CH4,y = BE CH4,y PE CH4,y Leakage = 3,709 tco 2e - 1,165 tco 2e 0 = 2,544 tco 2e Finally, the combined emission reduction due to methane avoidance and reduced coal consumption can be calculated: ER y = ER CH4,y + ER CO2,y = 2,544 tco 2e + 7,905 tco 2e = 10,449 tco 2e The following parameters are ex-ante determined values: - Average annual coal consumption before the installation of the digesters (FCBL,y) as per comprehensive baseline survey /BS/ - Average annual coal consumption after the installation of the digesters (FCPE,y) as per contrast group survey /CGS/ - Daily volatile solid excreted per animal (VSLT,y) (0.3 x 365) kg dry matter animal -1 year -1 as per 2006 IPCC for Asian swine - Maximum methane producing capacity for manure produced by livestock, of VS excreted (B0,LT) 0.29 m 3 CH4 kg -1 as per 2006 IPCC for Asian swine And the following parameters are ex-ante determined values in PoA-DD: - Global Warming Potential for CH4 (GWP) 25 tco2e/tch4 determined by COP/MOP decision: Standard for application of the global warming potentials to CDM project activities and PoAs for the second commitment period of the Kyoto Protocol as per 2006 IPCC. - Conversion factor of m 3 CH4 to kilogram CH4 (DCH4) 0.67 as per 2006 IPCC - Model correction factor to account for model uncertainties (0.94) (UFb) as per methodology AMS.III.D Page 30 of 92

31 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 For the data and parameters not to be monitored throughout the crediting period (i.e. they are determined only once and thus remain fixed throughout the crediting period), it is assessed that all data sources, assumptions and calculations are correct, applicable to the project and contribute to a conservative estimate of the emission reductions. For the data and parameters subject to monitoring, it is confirmed that the ex-ante estimated values for the monitoring parameters are plausible, and the emission reduction estimates provided in the CPA-DD are reasonable and conservative. Sampling plan: According to the registered POA-DD, the parameters NLT,y, FCBL,y and FCPE,y which exante determined are derived from the comprehensive baseline survey /BS/. While during the comprehensive baseline survey, PP used sampling method for determination of NLT,y, FCBL,y and FCPE,y which have been described in the FVR of the POA registration. During the CPA inclusion validation process, in order to confirm if the baseline is correctly determined, the DOE has conducted an on-site sampling. The Multi-stage sampling approach has been adopted and the sample size has been determined as per example 8 in EB69, Annex 5 by taking all the included CPAs into account (i.e. 14 CPAs, 64,414 households in 11 cities) according to calculation below: By applying the value listed below (table 5-1), the sample size has been determined by adopting the formula above, i.e. C=(20% 2 *(14/13)+(1/15)*20% 2 *((4,601-10)/(4,601-1)))/((0.1/1.96) 2 +(1/(14-1))*(20%) 2 ) = Therefore 9 CPAs have been selected on a random basis from proposed 14 CPAs. Subsequently 20 householders have been randomly selected from the list of selected CPA. The results have been summarized as per table 5-2. Page 31 of 92

32 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Table 5-1 the applied use for sample size calculation: M N u 95% confidence Required precision 14 CPAs 4,601 households/cpa % Sampled CPA Table 5-2 sampling result for all 14 CPAs Households in total No. of each CPA sampled householders Response rate as per on-site survey (uprounded as 9) 15/80%=20 =9*20=180 99% A comparison has been made by taking the DOE sampling results and ex-ante assumptions of NLT,y, FCBL,y and FCPE,y into account, and summarized as per table 5-3 Table 5-3 comparison of DOE sampling results to assumptions in PoA Parameters DOE sampling Ex-ante value in Conclusion results PoA NLT,y 5.9 ~ Conservative FCBL,y (tc) 8,738 ~ 10,475 4, Conservative FCPE,y (tc) 0.6~ Reasonable 5.10 Monitoring Plan According to the applied methodology, all monitoring parameters required by the applied methodology contained in the monitoring plan. They are: - The number of systems operating in each CPA (Nk) - Mean annual operation hours of the digesters (t) - Mean annual temperature in city k (T) - Methane conversion factors for each manure management system j in climate region k (MCFj,k) - Annual average number of animals of type LT in year y (NLT,y) - Land application of digestate from biogas digesters to avoid anaerobic digestion (Proper sludge application ratio) - Emission Factor of raw coal (EFCO2,i,y) - Net Calorific Value of raw coal (NCVi,y) It has been confirmed that for all monitoring parameters, conservative approaches have been ensured to derive values to emission reduction calculations during monitoring period. Page 32 of 92

33 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 Via on-site validation against the monitoring plan and sampling plan /SP/, the validation team conclude that the monitoring plan can be implemented with regard to the description of measurement methods, monitoring frequency and QA/QC procedures for each monitoring parameters. All the monitoring arrangements are feasible within the project design. The monitoring plan can be implemented and all the monitoring arrangements are feasible within the CPA design. All monitoring parameters for which no complete set of records is obtained are monitored according to a sampling plan. This sampling plan /SP/ has been provided to the DOE for validation as a separate document. For further details on the proposed sampling plan please refer to section of the PoA FVR Approval and Authorization LOAs The precise title of this PoA is: Sichuan Rural Poor-Household Biogas Development Programme. Host country Approval for this PoA has been issued on vide official document 5304 by National Development and Reform Commission, which is confirmed as P.R. of China s DNA. The PoA complies with the permission requirements and assists the host country in achieving sustainable development. Annex-I country Approval for the PoA has been issued on vide official document EA/UPM/01/2012 by Environmental Agency, which is confirmed as United Kingdom s DNA. The DOE confirms that, the project information, e.g. project name, the project participants is consistently descripted in PoA-DD, CPA-DD and LoAs. MOC The MOC has provided in form of a scanned version. It could be confirmed by DOE that: The valid version of the form Modalities and Communication statement has been used, and the information required is correctly completed Project Management Planning Management structure of the monitoring plan is defined in Section B.6.1 and is assessed to be appropriate for the purpose of the CPA monitoring. The overall responsibility for the monitoring will be held by the CME Chengdu Oasis Science & Technology Co., Ltd. Besides the SREO is entrusted by the CME w.r.t. manage and administer all technical issues and especially to managing the work of City, County and district level Rural Energy Offices as well as the cooperation with existing Agricultural Service Centres and Villages Committees. All monitoring data will be kept at the CME or the database system managed by the CME. Emission reduction calculation will be based on data collected and installed in database system. The database system is confirmed as the data management system designed specifically for the PoA to ensure the data accuracy, to avoid double counting, to addressing uncertainty (QA/QC), and Page 33 of 92

34 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA 087 to manage 100% monitoring data storage for the monitoring of all CPAs. The CME has established following operational and management arrangements: A record keeping system for each CPA under the PoA, A system/procedure to avoid double accounting e.g. to avoid the case of including a new CPA that has been already registered either as a CDM project activity or as a CPA of another PoA, The SSC-CPA included in the PoA is not a de-bundled component of another CDM programme activity (CPA) or CDM project activity. The provisions to ensure that those operating the CPA are aware of and have agreed that their activity is being subscribed to the PoA; The Sichuan Rural Energy Office will be responsible for the monitoring management of the CPAs. The conduction of the monitoring and collection of the data will be forwarded to the city and county level REOs. Thereby, a decentralized data collection system will compile the data and submit it to the Chinese Academy of Agricultural Engineering (CAAE) for statistical analysis. The complete data will finally be submitted to the CME, which evaluates the data and compiles the monitoring reports for the single CPAs. Emission reduction calculation will be based on data collected and installed in CME database. CME has provided a management plan in line with EB 70 Annex 5. The management plan was made available to the DOE, which can confirm that the CME has developed and implemented a management system that includes a) A clear definition of roles and responsibilities of personnel involved in the process of inclusion of CPAs, including a review of their competencies; b) Records of arrangements for training and capacity development for personnel; c) Procedures for technical review of inclusion of CPAs; d) A procedure to avoid double counting (e.g. to avoid the case of including a new CPA that has already been registered either as a CDM project activity or as a CPA of another PoA); e) Records and documentation control process for each CPA under the PoA; f) Measures for continuous improvements of the PoA management system; g) Any other relevant elements. Related sections in PoA-DD and CPA-DD substantiate the stated. According to the methods specified in section A and E. 7.2 of the PoA-DD, statistically sound sampling methods and procedures to be used by DOEs for inclusion and verification of ERs achieved by CPAs under the PoA have been defined. A dedicated Monitoring Sampling Plan has been developed by the CME. The DOE has validated the Monitoring Sampling Plan and can confirm compliance with EB 69 Annex 4. Page 34 of 92

35 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA Project Documentation / Editorial Aspects CPA-DD template version 2.0 is adopted and is in compliance with the latest CPA-DD guidelines Hints for next CPA Inclusion None Page 35 of 92

36 CPA Validation Report: Sichuan Rural Poor-Household Biogas Development Programme, CPA Nb. SCHHBG P-No.: 14/151-CPA VALIDATION OPINION. In detail the conclusions can be summarized as follows: - The CPA is in line with all relevant host country criteria (China) and all relevant UNFCCC requirements for CDM. Project activity (the PoA) approval have been obtained from DNA of china vide the Letter of Approval (HCA) dated and from DNA of United Kingdom dated The baseline has been appropriately identified as per the applied methodology. - The framework for determination project additionality is sufficiently justified in the CPA-DD in line with POA-DD and generic CPA-DD. - All eligibility criteria established for CPA inclusion in the PoA-DD have been sufficiently fulfilled. - The monitoring plan is transparent and adequate. - The calculation of the emission factors and the CPA emission reductions is carried out in a transparent and conservative manner, so that the calculated emission reductions of 104,490 tco2e are most likely to be achieved within the fixed crediting period. - Information on the local stakeholders consultation by the project participants prior to submitting the CPA for validation is sufficiently provided in the CPA-DD, which is in line with POA-DD and generic CPA-DD. - Information on the environmental impact analysis of the CPA is sufficiently provided in the CPA-DD, which is in line with POA-DD and generic CPA-DD. - The CPA Sichuan Rural Poor-Household Biogas Development Programme, CPA 087. shall be included in the PoA Sichuan Rural Poor-Household Biogas Development Programme Shanghai, Essen, Ms. Zhao Xuejiao TÜV NORD JI/CDM CP Validation Team Leader Mr. Martin Saalmann TÜV NORD JI/CDM CP Final Approval Page 36 of 92