GOLD STANDARD PASSPORT

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1 GOLD STANDARD PASSPORT CONTENTS A. Project title B. Project description C. Proof of project eligibility D. Unique Project Identification E. Outcome stakeholder consultation process F. Outcome sustainability assessment G. Sustainability monitoring plan H. Additionality and conservativeness deviations Annex 1 ODA declarations 1

2 SECTION A. Project Title Energy-efficient biomass cook stoves and biomass fuel pellets for communal kitchens in India. SECTION B. Project description The efficient cookstove project promotes the use of climate-friendly biomass-pellet cook stoves to replace LPG cook stoves in community kitchens in India. Hence, the project activity uses renewable energy (biomass pellets) to generate heat energy in a sustainable way to satisfy commercial users cooking needs. Biomass pellets are GHG neutral and will displace fossil fuel based thermal energy. In addition, they will reduce the associated CO2 emissions through combustion of fossil fuels. The project activity aims to sell, biomass cook stoves within 4 years to community kitchens, such as road side eateries, restaurants, canteens and hotels which will lead to annual emission reduction of around tco2e per year. The total installed thermal energy generation capacity of the project is less than 45MW thermal which is the threshold for CDM small scale activities. The biomass cookstoves are to be subsidised by carbon finance and therefore they can be sold to beneficiaries with a 30 percent reduction on the sales price. The end- users also benefit from the cheaper price of biomass pellets compared to LPG. In addition, the project entails the built-up of a fuel pellet supply chain as lack of access to biomass pellets was previously the main obstacle to switching to the technology of clean biomass cookers. The project takes place on 4 operational levels: 1. Nishant Bioenergy (NB): NB is the project implementer and is responsible for project coordination and the stove production. 25 percent of the Carbon Credit revenues go to NB to support the scale-up and allow for stove subsidisation. 2. Pellet Producers (PP): The PP are responsible for the production and sale of biomass pellets, the sale of stoves to the Green Entrepreneurs and collection of the (pellet fuel) sales data. The PP will keep stocks of stoves and spares. 75 percent of the carbon revenues will be shared with the PP to enable them to sell fuel pellets at lower rates to Green Entrepreneurs. NB will give franchising certificates to PP. 3. Green Entrepreneurs (GE): An important component of the project is the involvement of around 150 GE, who work as reseller in their local areas. Their main responsibility is the supply of community kitchens with biomass pellets and the sale and maintenance of the biomass stoves. They will also provide the data of stove user location linked with GPS 2

3 coordinates. PP will give one day training to GE. NB will give franchising certificates to GE. 4. Community Kitchens/End users (CK): The end users are CK (i.e. restaurants, dhabas, road side eateries) which serve average around meals per day. The CKs will benefit from low cost stoves and pellets, as well linkage with fuel supply chain/service network in his area. Figure A.2.Schemtic demonstration of carbon money flow The baseline scenario is the use of LPG cookstoves in the commercial cooking sector in India. LPG is the most common used fuel for cooking in urban areas in India. In the baseline CO2 emissions are generated through the use of LPG for cooking in community kitchens. Until today, there are no easily accessible alternative fuels available in India and there is a strong dependency on LPG. Both scenarios, the baseline scenario and the scenario existing prior to the implementation of the project activity, are the same. 3

4 The project will not only lead to emissions reductions, but also to sustainable development benefits. The projects contributes to sustainable development in India in the following ways: Sustainability: The main barrier for switching from LPG stoves to renewable biomass pellets is the inexistent supply chain. Once the primer barrier is tackled and the pellet supply chain is functioning, community kitchen will be able to afford efficient biomass cook stoves and biomass pellets at normal price. Social Benefits: The project will create around jobs. This includes approximately 20 technical jobs in pellet production, 28 low skill jobs in stove manufacturing and approximately 200 part time jobs in biomass collection. This part time jobs will have strong contribution to farmers income. Project partner: Nishant Bioenergy, is an efficient biomass cooker manufacturer and technology developer. Nishant Bioenergy is an Indian pioneering company, leading in the production of efficient cookers, which has already developed and patented various models. The company is hugely committed to a sustainable development and won the prestigious Ashden Award in 2005 for its technology. Technology: The very innovative small pellet cook stove named EARTH STOVE for use in restaurants, dhaba, college /school canteens etc. has been designed and manufactured by Nishant Bioenergy P Limited (NBPL). The Earth Stove is very innovatively designed and is very efficient, clean and has very low carbon emissions. It replaces one kilo of LPG with 2.25 kilo of biomass fuel pellets. It saves more than 50% fuel cost comparing commercial LPG. Project Boundary: The project will be implemented in different states of the Republic of India. Thanks to its scale and cross-regional implementation, the project makes a significant contribution to technology transfer in India. Estimated start date of construction: The installation of the EARTH Stoves has started on the 9 th of February The project lifetime will be 10 years. 4

5 SECTION C. Proof of project eligibility C.1. Scale of the Project [See Toolkit 1.2.a] Please tick where applicable: Project Type Large Small x C.2. Host Country India 5

6 C.3. Project Type [See Toolkit 1.2.c and Toolkit Annex C] Please tick where applicable: Project type Yes No Does your project activity classify as a Renewable Energy project? x Does your project activity classify as an End-use Energy Efficiency Improvement project? Please justify the eligibility of your project activity: The project activity contains of two parts - is the production and distribution of biomass pellets to replace LPG - the construction and distribution of efficient biomass pellet cook stoves to community kitchens to replace LPG cookers The project replaces fossil fuel with renewable energy sources and therefore classifies as a renewable energy project. Pre Announcement Yes No Was your project previously announced? x The proposed project activity has not been announced previously without mentioning that it will be conducted as a carbon offset project. Please see the project decision timeline below for clarification. Project decision timeline: MoU between Nishant Bioenergy and myclimate signed on ERPA between Nishant Bioenergy and myclimate signed on Local stakeholder meeting was conducted according to Gold Standard guidelines on Stakeholder report uploaded to Gold Standard registry on Project listed in Gold Standard registry on 16. August Prior consideration under UNFCCC received on Contract with first Pellet producer/green Enterpreneur was signed on Dissemination of first biomass cookstove on

7 C.4. Greenhouse gas [See Toolkit 1.2.d] Greenhouse Gas Carbon dioxide x Methane Nitrous oxide C.5. Project Registration Type [See Toolkit 1.2.f] Project Registration Type Regular x Pre-feasibility assessment Retroactive projects (T.2.5.1) Preliminary evaluation (eg: Large Hydro or palm oil-related project) (T.2.5.2) Rejected by UNFCCC (T2.5.3) If Retroactive, please indicate Start Date of Construction dd/mm/yyyy: 7

8 SECTION D. Unique project identification D.1. GPS-coordinates of project location [See Toolkit 1.6] Latitude Longitude Coordinates 30 44' 4.05" N 76 47' 12.59" W Explain given coordinates The given coordinates describe the location if the main office of Nishant Bioenergy in Chandigarh: Nishant Bioenergy P Ltd, SCO 37, 2nd Floor, Sector 18 D, Chandigarh D.2. Map Map1: Location of India on world map( 8

9 Map 2: Overview of the States of India (Source of the map: SECTION E. Outcome stakeholder consultation process E.1. Assessment of stakeholder comments [See Toolkit Annex J] [See Local Stakeholder Consultation Report B.5 and insert table from ii Assessment of comments. Insert a summary of alterations based on comments] The local stakeholder consultation was held the 10 th of May 2011 in New Delhi India. 19 people attended the meeting whereof most of the participants were technology users and of fuel manufacturers. Feedback forms with three questions were handed out and a total of 12 duly filled evaluation forms were returned by the participants. Most people liked the project and its delivery. Comments were mostly related to technology as no body has seen them before. Many people also highlighted the way how the project will create employment and address the issue of fuel cost cutting with sustainable manner at the same time. Table: Overview of 5 representative samples of filled out feedback forms Participant name What is your impression of the meeting? What do you like about the project? What do you not liked about the project? 9

10 Ashok Rao GOLD STANDARD PASSPORT I would say it was a small gathering of innovative and intelligent people. I would vote for the way project will involve many people creating employment and clean fuel. Puneesh Mittal Excellent programme My thinking of making of my kitchens non hazardous as well as carbon neutral is possible. Chander Mohan Sachdeva Deepak Sharma Vishal Meeting was good and gave us detailed information. I was impressed with technology display. It was a good meeting and thanks for the invitation. Of course stove technology was centre of attraction. I am looking forward to reduce my kitchen fuel expense. Innovations from stove technology to fuel pellet and its delivery chain. It would have been good if they can come up with automated stove. - - I was interested to see fuel pellet manufacturing too. As such nothing noticed. E.2. Stakeholder Feedback Round Please describe report how the feedback round was organised, what the outcomes were and how you followed up on the feedback. [See Toolkit 2.11] The Stakeholder Feedback Round will be conducted as soon as the validation has started. 10

11 SECTION F. Outcome Sustainability assessment F.1. Do no harm Assessment [See Toolkit and Toolkit Annex H]h Safeguarding principles Human Rights 1. The project respects internationally proclaimed human rights including dignity, cultural property and uniqueness of indigenous people. The project is not complicit in Human Rights abuses 2. The project does not involve and is not complicit in involuntary resettlement 3. The project does not involve and is not complicit in the alteration, damage or removal of any critical cultural heritage. Description of relevance to my project * The project does not introduce an entirely new concept that is far off the local culture. Cooking with efficient biomass cook stove is not much different from cooking with LPG stove. Before they used to burn LPG user were used to burn wood or coal. Hence, no significant change in cultural practice shall occur. Since people are free in participating there are no constraints as to their freedom and liberty. * No change in land use is envisaged in the proposed project. The project does not buy in addition fields for biomass collection but partners with field owners. The project does not lead to change of ownership of land. * No displacement of communities is planned to set the project. * The local community s cultural set up will not be altered, damaged or removed/replaced as result of this project. Assessment of my project risks breaching it (low, medium, high) Low Low Low Mitigation measure Not needed Not needed Not needed 11

12 Labour standard 4. The project respects the employees freedom of association and their right to collective bargaining and is not complicit in restrictions of these freedoms and rights * The project will provide employment to local youth by way of their involvement in biomass processing in to fuel pellet manufacturing. This activity will need manpower for biomass collection from the farm fields, transportation of the same to processing plant, production in to fuel pellets and its transportation to pellet dealers. * The project will respect the employees freedom of associations and their right to collective bargaining. * The proposed project will not at any time be involved in any forceful production or sales of stoves and fuel pellets. Project participating is on voluntary basis. * The project does not involve any form of child labour in any part of the project. All workers involved in biomass collection, pellet/stove production, pellet supply, stove implementation or in any other project activity will be above 18 years. * The project is not biased either for any gender, religion, caste or race. No group will be excluded from participating in the project. Low Not needed 5. The project does not involve and is not complicit in any form of forced or compulsory labor Low Not needed 6. The project does not employ and is not complicit in any form of child labor. Low Not Needed 7. The project does not involve and is not complicit in any form of discrimination based on gender, race, religion, sexual orientation or any other basis. 8. The project provides workers with a safe and healthy work environment and is not complicit in exposing workers to unsafe or unhealthy work environments. Low Not needed * No hazardous material will be used in any of the activity of the project. The main material used will be mild steel, cast iron, fire clay, ceramic insulation for stove production and agricultural and forest residues for making biomass fuel pellet and does not contain any forms of toxic substracts. Also the processes of cookstove and pellet production are well controlled and safe. Low Not needed 12

13 Environment protection 9. The project takes a precautionary approach in regard to environmental challenges and is not complicit in practices contrary to the precautionary principle. This principle can be defined as When an activity raises threats of harm to human health or the environment, precautionary measures should be taken even if some cause and effect relationships are not fully established scientifically. 10. The project does not involve and is not complicit in significant conversion or degradation of critical natural habitats, including those that are (a) legally protected, (b) officially proposed for * The project promotes environment protection by replacing petro product with carbon neutral biomass. Low Not Needed The project will not involved in to any degradation of natural habitats. It will use locally available steel, cement. The project will promote conservation of petro products. Low Not needed Anti-corruption 11. The project does not involve and is no complicit in corruption. * The project does not involve and is not complicit in corruption. The whole project set up is transparent. All stove users will get registered and the project data will be recorded carefully. The money flow is traceable Low Not needed F.2. Sustainable Development matrix [See Toolkit and Toolkit Annex I] Insert table in section C3 from your Stakeholder Consultation report (Sustainable Development matrix). Indicator Mitigation measure Relevance to achieving MDG Chosen parameter and explanation Preliminary score 13

14 Gold Standard indicators of sustainable development Air quality Water quality and quantity Soil condition Other pollutants Biodiversity Quality of employment GOLD STANDARD PASSPORT If relevant, copy mitigation measure from Do No Harm assessment, and include mitigation measure used to neutralise a score of - Check and Describe how your indicator is related to local MDG goals Defined by project developer The project will not have a major impact of indoor air quality because LPG combustion is already clean. The project will not have any impact on water quality and quantity. The will not have any impact on soil condition Nishant Pellet stove uses biomass pellets which does not generate any pollutants during production processes. The project will not lead to any change in biodiversity since the stove and pellet production does not affect the flora or fauna habitat in the project regions. The project will improve in quality of employment. As both i.e. stove and fuel pellet manufacturing employment will be generated. Full time jobs will be created at the fuel pellet plants as this is recurring activity. Employment registers of fuel pellet manufacturers as well as of stove manufacturers will be posted on project s web portal to get the Negative impact: score - in case negative impact is not fully mitigated, score 0 in case impact is planned to be fully mitigated No change in impact: score 0 Positive impact: score

15 Livelihood of the poor Access to affordable and clean energy services Human and institutional capacity Quantitative employment and income generation GOLD STANDARD PASSPORT numbers. Poor people in rural area will get livelihood by way of their involvement in biomass collection as well as its processing to fuel. Because fuel pellet manufacturer needs manpower which is having experience in biomass management. Pellet stove to community kitchen owners will help them to reduce their fuel bills as Earth Stove save around 50% fuel bill while they shift from LPG to biomass pellet. Because of this project they will be able to adopt and us the technologies Nos of stove sold and quality of pellet sold would be monitored from sales bills and data collected will be loaded to project s web portal. Project is developing human skill by providing technology for fuel pellet let manufacturing which is never existed. Also stove technology will create trained manpower to manufacture stove which will further use their skill while technology transfer will happen to other manufacturers. Number of people at different pellet plants as well as at stove manufacturing facility will be monitored. The project will result in full time employment generation as well as part time. Full time employment will be at pellet manufacturing, delivery to end

16 Balance of payments and investment Technology transfer and technological self-reliance GOLD STANDARD PASSPORT consumers. Part time employment is for the collection of biomass, transportation of biomass. Quantum of indirect employment will be accessed by the volume of sales of pellet and stove. N/A 0 Both the technologies i.e. small scale pellet manufacturing and stove are new and its implementation under this project will enable the technology transfer to many enterprises establishing self sustaining fuel production facilities duly linked with stove users. Justification choices, data source and provision of references A justification paragraph and reference source is required for each indicator, regardless of score Air quality Health impact of household energy use: The baseline is cooking with LPG cookstoves which is a clean fuel in regards of people s health : Lab testing confirms that cooking with propane or liquid petroleum gas (LPG) is vastly cleaner than cooking over an open fire reducing emissions of most key pollutants by over 95% Water quality and quantity Soil condition The project activity is cooking with biomass pellets which is a clean, sustainable energy source and CO2 neutral: Water plays a secondary role in the process of biomass pellet production. The used technic for biomass pelleting operation consists of the three major operations: drying, size reduction (grinding), and densification (pelleting). Economics of producing Fuel Pellets from Biomass,S. Mani, S. Sokhansanj, X. Bi, A. Turhollow, p: in%20biomass/economics%20of%20producing%20fuel%20pellet s%20from%20biomass.pdf The practice of burning biomass in the field results in loss of nutrients in soil, atmospheric pollution and emission of greenhouse 16

17 Other pollutants Biodiversity Quality of employment Livelihood of the poor Access to affordable and clean energy services GOLD STANDARD PASSPORT gases. Effect of Burning Rice and Wheat Crop Residues: Loss of N, P, K and S from Soil and Changes in the Nutrient Availability, Sharma P.K., Mishra B. Department of Soil Science, G.B. Pant University of Agriculture and Technology, Pantnagar, Uttaranchal, Journal of the Indian Society of Soil Science Year : 2001, Volume : 49, Issue : 3 9&issue=3&article=006 Recycling of Rice Straw to improve wheat yield and soil fertility and reduce atmospheric pollution, Himanshu Pathak, Ramandeep Singh, Arti Bhatia und Niveta Jain d33c0 Crop residue burning, effect on the environment Strategies to avoid residue burning in the Philippine context. Teodoro C. Mendoza, Roger Samson. R.E.A.P Report Canada. Page 5. es%20to.pdf There are no other pollutants at both the activities like at stove manufacturing as well as at pellet manufacturing Biodiversity is not affected by the production and use of biomass pellets nor efficient biomass pellet cookstoves. The project will create technical jobs on fulltime basis. India has an Unemployment rate of 9.8% (2011 est.) Project will create employment. Especially in rural communities where job opportunities are very difficult, new job opportunities are created. Estimates suggest that farmers annual income is 10% higher as a result of selling on the waste. Improved energy availability and efficiency have a direct impact on the wealth and in particular to the Human Development Index of poor people. Economic Impacts of Bioenergy Production and Use, DOE/SSEB Southeast Biomass State and Regional Partnership, p:1 Cooking with biomass pellets is much cheaper than cooking with LPG. Furthermore the prices for LPG in India are expected to increase in the coming years. 09/india/ _1_cylinders-cooking-gas-kerosene A Burning Concern- India, Series 7: Programme 1 (of 8) Energy Wise p:

18 Human and institutional capacity Quantitative employment and income generation Balance of payments and investment Technology transfer and technological self-reliance GOLD STANDARD PASSPORT Project will create employment for rural community. Economic Impacts of Bioenergy Production and Use, DOE/SSEB Southeast Biomass State and Regional Partnership, p:1 The production and use of biomass for energy, chemicals, or other products can have several positive economic impacts for society and especially for rural communities. The impact that gets the most attention is the establishment of jobs, which creates personal income and strengthens the tax base. Jobs are associated with the construction of biomass processing facilities and the operation and maintenance of these processing facilities Stove production and Pellet production create jobs. Renewable energy technologies are labour intensive and processing of biomass creates more employment than other renewable technologies. Economic Aspects of Biomass Utilisation 4%20Chap%203%20Bioamss.pdf p: Economic Impacts of Bioenergy Production and Use, DOE/SSEB Southeast Biomass State and Regional Partnership, p:1 N.A. Project s both technologies i.e. stove and pellet production will create employment and pellet production enterprises. This will lead to knowledge transfer and technology transfer to many enterprises. At the moment oil and LPG are the common energy sources in India in places with access to energy. 60% of the rural population still depend on primitive biomass cook stoves for cooking. Modern technology somehow has not touched their lives. The demand for LPG in India is growing. The average growth rate in demand has been around 12% annually. LPG subsidies in India. Indian LPG Market Prospects Energy for the rural poor Challenge for the global community, Anil K. Rajvanshi, p: 1 SECTION G. Sustainability Monitoring Plan [See Toolkit and Toolkit Annex I] Copy Table for each indicator 18

19 No 6 Indicator Quality of employment Mitigation measure N.A. Repeat for each parameter - Chosen parameter Number of people in year long employment at 1. Project office team 2. Pellet Production Plants 3. Stove manufacturing 4. Green Enterpreneurs Current situation of parameter No jobs because no manufacturing of stoves or pellets Estimation of baseline situation of See above parameter Future target for parameter Create around 1. 8 jobs at project office jobs per 3600 tonnes of pellets produced per annum (or per 1000kg/hour plant) at stove manufacturing 4. 3 jobs per GE ( in total) Way of monitoring How Documents provided by Employers When annually By who NB No 7 Indicator Livelihood of the poor Mitigation measure N.A. Repeat for each parameter - Chosen parameter Money paid to farmers for Biomass supply to PP Current situation of parameter Farmers burn post harvest non-fodder biomass or leave it for decay Estimation of baseline situation of See above parameter Future target for parameter Collection and payment of around tons of biomass for pellet production. Price for biomass ranges around INR/t Way of monitoring How Purchase Bills from PP When Annually By who NB No 8 Indicator Access to affordable and clean energy services 19

20 Mitigation measure N.A. Repeat for each parameter - Chosen parameter 1. Tons of pellets sold 2. Numbers of cookstoves sold Current situation of parameter People use LPG for cooking. LPG price for small businesses is around 70INR/kg and prices will increase in the future or they get illegally subsidised LPG on the black market which creates scarcity during winter. Estimation of baseline situation of parameter Future target for parameter LPG prices will increase in the future and number of subsidised cylinders per family will decease tons of pellets sold cookstoves sold Way of monitoring How Sales record of Pellet Producers and sales record of NB When Annually By who NB No 9 Indicator Human and institutional capacity Mitigation measure N.A. Repeat for each parameter - Chosen parameter Number of people trained in 1. Number of people working at Pellet Production plants established 2. Number of GE trained by PP 3. Number of people working at NB stove manufactory and Head Office Current situation of parameter Up to now, no biomass fuel pellet plant is working in India which is duly link with supply chain to end consumer. Estimation of baseline situation of See above parameter Future target for parameter people working at Pellet Production ((88 142/3600)*7(6-8) at GE at stove manufacturing and 8 in head office Way of monitoring How 1. Documents provided by PP 2. Contact Details of established GE uploaded to project website, and documents of GE about numbers of people 1 Quantum is justified that 3600 ton pellet production per annum needs between 6-8 regular people working at the pellet plant for pellet production. 20

21 When By who working at store. 3. Employment attendance register of NB Annually NB No 10 Indicator Quantitative employment and income generation Mitigation measure N.A. Repeat for each parameter - Chosen parameter Number of people working for the project 1. Number of people working at Pellet Production plants established 2. Number of GE trained by PP 3. Number of people working at NB stove manufactory and Head Office 4. Income of farmers providing biomass for pellet production Current situation of parameter Unemployment rate in India is 9.8%. Estimation of baseline situation of Famers are dependent on their daily income. parameter Future target for parameter people working at Pellet Production (88 142/3600)*7(6-8) at GE at stove manufacturing and 8 in head office INR ( * 1750 INR 2 ) Way of monitoring How 1. Documents provided by PP 2. Contact Details of established GE uploaded to project website, and documents of GE about numbers of people working at store. 3. Employment attendance register of NB 4. Amount of Purchased Biomass by PP divided by official number of working hours required per ton of biomass (3 mans days per ton of biomass(source)) When Annually By who NB No 12 Indicator Technology transfer and technological self-reliance 2 Price for biomass ranges around INR/t 21

22 Mitigation measure N.A. Repeat for each parameter - Chosen parameter 1. Numbers of PP established 2. Number of people working at stove manufacturing Current situation of parameter No fuel Pellet production plant running so far in India duly link with fuel supply chain. Insignificant numbers of efficient biomass stoves being produced in India. Estimation of baseline situation of See above parameter Future target for parameter 1. Around PP plants established people at stove manufacturing and 8 in head office Way of monitoring How 1. Contact Details of established PP uploaded to project website 2. Employment attendance register of NB When Monthly basis By who NB Additional remarks monitoring SECTION H. Additionality and conservativeness This section is only applicable if the section on additionality and/or your choice of baseline does not follow Gold Standard guidance H.1. Additionality 22

23 [See Toolkit 2.3] N.A. GOLD STANDARD PASSPORT 23

24 H.2. Conservativeness [See Toolkit 2.2] N.A. 24

25 ANNEX 1 [See Toolkit Annex D] ODA declaration 25