validation report for the renewal of the crediting period

FM 4.9 Validation Report Template GS N° CCIPL495/GS/VAL/PHCWTP/20173101 Rev. 04

(The Gold Standard Version 2.2) Revised: January 2016 1

VALIDATION REPORT for the Renewal of the Crediting

Period for the Gold Standard Project Activity

Burn Manufacturing

Burn Stoves Project in Kenya

In

Kenya

Report No: CCIPL495/GS/VAL/PHCWTP/20173101

Revision number: 04

Report Date: 02/04/2018

Carbon Check (India) Private Ltd. 3rd Floor, G49&50, Sector 3, Noida, UP, India – 201301

FM 4.9 Validation Report Template Gold Standard N° CCIPL495/GS/VAL/PHCWTP/20173101, Rev. 04 2

3rd Floor, G49&50, Sector 3, Noida, UP, India – 201301 Revised: January 2016

I. PROJECT DATA

Project title: Burn Stoves Project in Kenya

Host party: Kenya

Project location: Kenya

Methodology: Technologies and Practices to Displace Decentralized Thermal Energy Consumption (Version 3.1 – Date: 25/08/2017)

Sectoral Scope/Technical Area

1 (1.1), 3 (3.1) and 13 (13.1)

Scale: Large Scale Small Scale

GSC commenting period:

N/A

Final PDD : Version 04, 22/03/2018

Average emission reductions:

Estimated (revised): 924,215 tCO2e/yr

GHG reducing measure/technology:

The project involves the distribution of efficient healthy cookstoves that replace the traditional stoves used in the baseline. The project avoids GHG emissions caused by the combustion of non-renewable biomass.

Party Project participants Party considered

a project participant

Contract party

Kenya (Host) Burn Manufacturing No

Kenya (Host) ClimateCare Limited No

II. VALIDATION TEAM

Validation Team Role

Full name Affiliation Appointed for

Sectoral Scopes

(Technical Areas)

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Anubhav Dimri CCIPL 1.1, 1.2, 3.1, 13.1

X X

Job Muriuki CCIPL -- X

Amit Anand CCIPL 1.2, 3.1, 8.1, 13.1, 14.1

X

Sanjay Kumar Agarwalla

CCIPL 1.1, 1.2, 2.1, 3.1, 4.1, 5.1, 5.2, 9.1, 9.2, 13.1

X



III. ASSESSMENT REPORT Assessment Phases and Status:

Desk Review

Resolution of outstanding issues Corrective Actions / Clarifications Requested

Full Approval and Submission for registration Rejected

Final Approval Date Approval Distribution

2018-04-02

(Final Approval) Vikash Kumar Singh

No distribution without permission from the

Client or responsible organizational unit

Limited Distribution

Unrestricted distribution

2017-04-18 (Technical Reviewer)

Amit Anand



Abbreviations

BAU Business As Usual

CER Certified Emission Reduction

CAR Corrective Action Request

CCIPL Carbon Check (India) Private Ltd.

CER Certified Emission Reduction

CL Clarification Request

CO2 Carbon Dioxide

CO2e Carbon Dioxide Equivalent

DOE

DVR

Designated Operational Entities

Draft Validation Report

EF Emission Factor

FA Final Approval

FAR

FVR

GS

GSC

Forward Action Request

Final validation Report

Gold Standard

Global Stakeholder Consultation

GHG Greenhouse gas(es)

IPCC Intergovernmental Panel on Climate Change

OSV On Site Visit

QC/QA

RCP

Registry

TA

TR

Quality control/Quality assurance

Renewal of the crediting period

Gold Standard/Markit Registry

Technical Area

Technical Review

UNFCCC United Nations Framework Convention on Climate Change

VVS Validation and Verification Standard



Assessment Opinion

Burn Manufacturing (here after referred to as “PP”) has commissioned Carbon Check (India) Private Ltd. (CCIPL) here after referred to as “DOE”, to perform the renewal of crediting period validation of their registered project titled “Burn Stoves Project in Kenya”. The assessment was performed on the basis of Gold Standard Requirements, Annex-Z and validation and verification requirements stated in the VVS (version 09.0). The scope of the assessment is defined as an independent and objective review of the Project Design Document/01-4/, GS Passport/03-3/ and other relevant documents. The information in these documents is reviewed against Gold Standard Requirements version 2.2 dated 01/06/2012 (specifically Annex-Z: Gold Standard Procedures for the Renewal of a Crediting Period /B01/). The report is based on the assessment of the Project Design Document/01-4/, revised GS Passport/03-3/ and other relevant documents undertaken through application of standard auditing techniques including but not limited to stakeholder interviews, document reviews, review of the applicable/applied methodology and its underlying formulae and calculations. The Assessment team confirms the contractual relationship signed on the 09/02/2017 between the DOE and the Project Participant (Burn Manufacturing). The team assigned to the assessment meets the Carbon Check (India) Private Ltd.’s internal procedures including the UNFCCC requirements for the team composition and competence. The assessment team has conducted a thorough contract review as per UNFCCC and Carbon Check procedures and requirements. The objective of the Burn Stoves Project in Kenya to improve health and incomes throughout Kenya by reducing time and money spent acquiring fuel for household cooking. The project stoves are expected to replace the inefficient traditional stoves used in the baseline. As a result, the project results in reductions of CO2 emissions that are real, measurable and gives long-term benefits to the mitigation of climate change. This project has been registered under the Gold Standard and the Project Participant now wishes to propose a renewal of the crediting period for the project activity. The project meets all relevant host country criteria and Gold Standard requirements (specifically Annex-Z: Gold Standard Procedures for the Renewal of a Crediting Period /B01/). The project correctly applies the Gold Standard baseline and monitoring methodology; “Technologies and Practices to Displace Decentralized Thermal Energy Consumption (Version 3.1 – Date: 25/08/2017)”. The project results in reductions of 6,469,506 tCO2e emissions over the entire crediting period and is real, measurable and gives long-term benefits to the mitigation of climate change The total emission reductions from the project are estimated to be 6,469,506 t of CO2e over a 7-year crediting period during 2017-2024, averaging 924,215 t of CO2e annually. The ex-ante estimation of the emission reduction has been changed from the previous version of the PDD/01-2/ and it is due to the higher value of the monitored parameter Np,y. PP has clarified that the change was brought about by new projections on the sales. The emission reduction forecast has been checked and it is deemed likely that the stated amount is achieved given the underlying assumptions do not change. The renewal of crediting period validation is based on the information made available to us and the engagement conditions detailed in this report. The only purpose of this report is its use during the validation of renewal of the crediting period for the GS-VER project. Hence, Carbon Check cannot be held liable by any party for decisions made or not made based on the validation opinion, which will go beyond that purpose.



The validation protocol describes a total of 12 findings, which include:

• 06 Corrective Action Requests (CARs);

• 06 Clarification Requests (CLs);

• 00 Forward Action Requests (FARs); All findings have been closed satisfactorily of the main report. Carbon Check (India) Private Ltd. concludes the validation with a positive opinion that the renewal of the crediting period of the GS Project Activity “Burn Stoves Project in Kenya” in Kenya, as described in the PDD (version 04, dated 22/03/2018) /01-4/, meets the requirements for the renewal of the crediting period as stipulated under Gold Standard Requirements and Annex Z/B01/.



TABLE OF CONTENTS

1. INTRODUCTION ...................................................................................................................... 8

1.1 Objective 8

1.2 Scope 8

1.3 GHG Project Description 8

2. METHODOLOGY ...................................................................................................................... 9

2.1 Desk review 9

2.2 Background documents: 9

2.3 Follow-up interviews with project stakeholders 10

2.4 Resolution of outstanding issues 11

2.5 Internal quality control 11

2.6 Validation Team 11

3. VALIDATION FINDINGS ........................................................................................................ 12

3.1 Validity of the original baseline or its update through an assessment carried out as per the latest version of the “Tool to assess the validity of the original/current baseline and to update the baseline at the renewal of a crediting period” by the CDM EB 12

3.2 Correctness of the application of an approved baseline methodology for the determination of the continued validity of the baseline or its update, and the estimation of emission reductions for the applicable crediting period; 13

3.3 Local stakeholder consultation process and its outcome 17

3.4 Sustainable Development assessment including the SD Matrix and DNHA 17

3.5 Revised SD monitoring plan 17

APPENDIX-A 18

APPENDIX B 30



1. INTRODUCTION The Project Participant Burn Manufacturing has commissioned the Carbon Check (India) Private Ltd. to perform an independent validation of the renewal of the crediting period for the Project Activity “Burn Stoves Project in Kenya” in Kenya (hereafter referred to as “project activity”). This report summarises the findings of the assessment of the renewal of crediting period request for the project, performed on the basis of relevant Gold Standard requirements and Annex-Z to the requirements and the applicable UNFCCC guidance. This report contains the findings and resolutions from the assessment and assessment opinion thus confirming the project design change is sound and reasonable and meets the stated requirements and identified criteria.

1.1 Objective

The purpose of the assessment is to have a thorough and independent evaluation of the proposed renewal of the crediting period of the registered project activity against the applicable Gold Standard specific conditions Annex-Z/B01/ to confirm that the renewal of the crediting period request is complete, reasonable and meets the stated requirements and identified criteria. The assessment is seen as necessary to provide assurance to stakeholders about the quality of the project and its proposed generation of verified emission reductions (VERs).

1.2 Scope

The assessment scope is defined as an independent and objective review of the request for renewal of the crediting period. The PDD/01-4/, GS passport/03-3/ and other supporting documents are reviewed against the relevant Gold Standard criteria (Annex-Z/B01/) and applicable decisions by the GSF. The assessment team has employed a rule-based approach, focusing on the identification of significant risks for project implementation and the generation of emission reduction. The assessment is not meant to provide any consulting towards the project participants. However, stated requests for clarifications and/or corrective actions may have provided input for improvement of the PDD. While carrying out the validation, CCIPL determines if the project activity complies with the Gold Standard requirements, specifically the applicability conditions of the Annex Z- Gold Standard Procedures for the Renewal of a Crediting Period /B01/ and also assesses the claims and assumptions made in the PDD/01-4/ without limitation on the information provided by the project participants.

1.3 GHG Project Description

The objective of the Burn Stoves Project in Kenya is to improve health and incomes throughout Kenya by reducing time and money spent acquiring fuel for household cooking. The project activity includes distribution of improved cook stoves for households in Kenya. The project stoves are expected to replace the traditional non-efficient cook stoves used in the baseline. As a result, the project results in reductions of CO2 emissions that are real, measurable and gives long-term benefits to the mitigation of climate change. This project has been registered under Gold Standard and the Project Participant now wishes to propose a renewal of crediting period to the project activity. The renewal of crediting period for the project activity is being done for the period 2017-2024

Starting date of project

Start date of crediting period

Crediting period (term)

Crediting period Number

12-06-2009 26/04/2017 7 years Period two



2. METHODOLOGY The validation consists of the following three phases: I A desk review of the project design documents

• A review of data and information;

• Cross checks between information provided in PDD/01-4/, GS Passport/03-3/ and information from sources with all the necessary means without limitations to the information provided by the project proponent;

II Site visit and follow – up interviews with project stakeholders

• Interviews with the relevant stakeholders in the host country with personnel having knowledge with the project development via direct on-site visits;

• Cross checking between information provided by interviewed personnel with all the necessary means without limitations to the information provided by the project proponent;

III The resolution of outstanding issues and issuance of the final assessment report (opinion). The following sections outline each step in detail.

2.1 Desk review

The following table outlines the documentation reviewed during the validation:

Ref no. Reference Document

/1/ 1.1 PDD, (version 01; Dated 31/03/2017) track change & clean 1.2 PDD, (version 02; Dated 12/04/2017) track change & clean 1.3 PDD, (version 03; Dated 09/02/2018) track change & clean 1.4 PDD, (version 04; Dated 22/03/2018) track change & clean

/2/ 2.1 Emissions Reduction spread sheet corresponding to /01.1/ 2.2 Emissions Reduction spread sheet corresponding to /01.2/ 2.3 Emissions Reduction spread sheet corresponding to /01.3/ 2.3 Emissions Reduction spread sheet corresponding to /01.4/

/3/ 3.1 Gold Standard Passport for Burn Stoves Project in Kenya (version 01; Dated 05/04/2017) track change & clean 3.2 Gold Standard Passport for Burn Stoves Project in Kenya (version 02; Dated 12/04/2017) track change & clean 3.3 Gold Standard Passport for Burn Stoves Project in Kenya (version 03; Dated 09/02/2018) track change & clean

/4/ WBT Test report: KENYA INDUSTRIAL RESEARCH AND DEVELOPMENT INSTITUTE, 27/04/2016

/5/ Validation contract between the Burn Manufacturing and Carbon Check (India) Private Ltd (Dated 10/02/2017)

/6/ Serial number generator with the procedure

/7/ Stove price evidence

/8/ ANALYSIS OF THE CHARCOAL VALUE CHAIN IN KENYA, August 2013 (Ministry of Environment, Water and Natural Resources, Kenya)

/9/ Determination of NRB spreadsheet

2.2 Background documents:

Ref no. Reference Document

/B01/ 1. The Gold Standard Energy Requirements v2.2 2. GS Annex-Z “Gold Standard Procedures for the Renewal of a Crediting Period”

/B02/ GS Methodology “Technologies and Practices to Displace Decentralized Thermal Energy Consumption” (Version 3.1; Dated 25/08/2017)



/B03/ Gold Standard Foundation: http://www.cdmgoldstandard.org

/B04/ 1. CDM Validation and Verification Standard v9 2. CDM Project Standard v9 3. CDM Project Cycle Procedure v9

/B05/ Assessment of the validity of the original/current baseline and update of the baseline at the renewal of the crediting period v3.0.1 EB66 Annex 47

/B06/ National Energy Policy, Kenya 24/02/2014

/B07/

Weblinks:

1. http://www.arcgis.com/home/item.html?id=d8c1d70fbb2d49028e0713d425b26805

2. http://www.knbs.or.ke/index.php?option=com_content&view=article&id=176&Itemid=645

3. http://www.kenyaforestservice.org/documents/redd/Charcoal%20Value%20Chain%20Analysis.pdf

4. http://www.environment.go.ke/wp-content/uploads/2016/07/Kenya-NFP-draft-doc-2016-07-12-small-v2-1.pdf

5. http://www.kenyaforestservice.org/documents/redd/Analysis%20of%20Demand%20and%20Supply%20of%20Wood%20Products%20in%20Kenya.pdf

/B08/ CDM Tool: Calculation of the fraction of non-renewable biomass EB 97, Annex 9

2.3 Follow-up interviews with project stakeholders

The assessment team of Carbon Check carried out a site visit from 16/02/2017 to 17/02/2017 and it aims to the following: The project representatives and stakeholders interviewed:

Name Organization Topic

/i/ Joash Obare

ClimateCare • Discussion on changes due to renewal of the crediting period.

• ER sheet

• Validity of the original/current baseline and update of the baseline at the renewal of the crediting period

/ii/ Elizabeth Mwangi ClimateCare Discussion on changes due to renewal

of the crediting period.

/iii/ Allan Joe Burn Manufacturing • Training Procedure

• Quality Management

/iv/ Ephantus Munene Burn Manufacturing • Training Procedure


/v/ Chris McKinney

Burn Manufacturing • Monitoring Structure

• Training Procedure


• Stove Manufacturer Specifications with Efficiency specifications

• Serial Number procedure/ Avoidance of double counting

http://www.cdmgoldstandard.org/

http://www.arcgis.com/home/item.html?id=d8c1d70fbb2d49028e0713d425b26805

http://www.arcgis.com/home/item.html?id=d8c1d70fbb2d49028e0713d425b26805

http://www.knbs.or.ke/index.php?option=com_content&view=article&id=176&Itemid=645

http://www.knbs.or.ke/index.php?option=com_content&view=article&id=176&Itemid=645

http://www.kenyaforestservice.org/documents/redd/Charcoal%20Value%20Chain%20Analysis.pdf

http://www.kenyaforestservice.org/documents/redd/Charcoal%20Value%20Chain%20Analysis.pdf

http://www.environment.go.ke/wp-content/uploads/2016/07/Kenya-NFP-draft-doc-2016-07-12-small-v2-1.pdf

http://www.environment.go.ke/wp-content/uploads/2016/07/Kenya-NFP-draft-doc-2016-07-12-small-v2-1.pdf

http://www.kenyaforestservice.org/documents/redd/Analysis%20of%20Demand%20and%20Supply%20of%20Wood%20Products%20in%20Kenya.pdf

http://www.kenyaforestservice.org/documents/redd/Analysis%20of%20Demand%20and%20Supply%20of%20Wood%20Products%20in%20Kenya.pdf



2.4 Resolution of outstanding issues

The objective of this phase of the validation is to resolve any outstanding issues (issues that require further elaboration, research or expansion), which need be clarified prior to Carbon Check (India) Private Ltd.’s conclusion opinion on the project design. Findings established during the validation can either be seen as a non-fulfillment of GS requirements and criteria or where a risk to the fulfillment of project objectives is identified. The list of findings are attached in Appendix-A of this report. Corrective action requests (CAR) are issued, where:

✓ The project participants have made mistakes that will influence the ability of the project activity to achieve real, measurable, verifiable and additional emission reductions;

✓ The applicable GS requirements have not been met; ✓ There is a risk that emission reductions cannot be monitored or calculated.

A request for clarification (CL) may be issued if information is insufficient or not clear enough to determine whether the applicable GS requirements have been met. A forward action request (FAR) is raised during validation to highlight issues related to project implementation that require review during the first verification of the project activity. FARs shall not relate to the GS requirements for registration.

The findings of validation process are summarized in the table (s) below.

Finding (reference section of table 1)

Classification CAR CL FAR

Description of finding (DOE)

Corrective Action or clarification #1

(PP shall write a detailed and clear corrective action or further information for clarification as per finding)

DOE Assessment #1

The assessment shall encompass all open issues in the finding. In case of non-closure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added.

Conclusion

Tick the appropriate checkbox

To be checked during the first periodic verification

Outstanding finding (not closed)

The finding is closed

2.5 Internal quality control

The final validation report has passed a technical review and quality reviewer before being submitted to the project participant(s) and Gold Standard Registry. A technical reviewer qualified in accordance with CCIPL’s qualification scheme for CDM validation and verification performed the technical review.

2.6 Validation Team

Carbon Check has appointed a competent team as per the UNFCCC Accreditation Standard and Carbon Check internal procedures. The team is outlined below:



Validation Team Type of Involvement

Full name Location Appointed for Sectoral Scopes (Technical Areas)

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Anubhav Dimri India 1.1, 1.2, 3.1, 13.1 X X X X X

Job Muriuki India -- X

Amit Anand India 1.2, 3.1, 8.1, 13.1, 14.1

X

Sanjay Kumar Agarwalla

India 1.1, 1.2, 2.1, 3.1, 4.1, 5.1, 5.2, 9.1, 9.2, 13.1

X

3. VALIDATION FINDINGS

3.1 Validity of the original baseline or its update through an assessment carried out as per the latest version of the “Tool to assess the validity of the original/current baseline and to update the baseline at the renewal of a crediting period” by the CDM EB

In accordance with the requirements of Annex-Z: Gold Standard Procedures for the Renewal of a Crediting Period/B01-3/, the validity of the original baseline has been assessed by the PP in line with the steps provided in the latest version of the “Tool to assess the validity of the original/current baseline and to update the baseline at the renewal of a crediting period”, version 03.0.1, EB 66 Annex 47/B05/. Step 1: Assess the validity of the current baseline for the next crediting period The validity of the current baseline is assessed using the following Sub-steps: Step 1.1: Assess compliance of the current baseline with relevant mandatory national and/or sectoral policies There are no mandatory national/and or sectoral policies for the use of improved cookstoves (ICSs). The national energy policy of Kenya/B05/ doesn’t provide any mandatory requirements for usage of improved cookstoves (ICSs) for household cooking purposes. The policy also provides that the existing 60% of cooking energy needs in Kenya are met by biomass use. Based on the review of the PDD/01-4/, it is confirmed that there are no mandatory national/and or sectoral policies for the use of improved cookstoves (ICSs) in Kenya. This has been cross-checked with the national energy policy of Kenya/B05/. Step 1.2: Assess the impact of circumstances The impact of circumstances existing at the time of requesting renewal of the crediting period on the current baseline emissions has been provided in the PDD/01-4/. As confirmed through the review of the PDD/01-4/ and the national energy policy of Kenya/B05/, it is confirmed that in spite of past efforts to promote wood fuel substitutes, the number of people relying on wood fuel is not decreasing. Currently no new fuel availability has come to the market and use of electricity for cooking is prohibitive due to high electricity tariffs and also due to the fact that most rural households are not connected to the grid. Therefore, the old baseline conditions still are valid and apply. Step 1.3: Assess whether the continuation of use of current baseline equipment(s) or an investment is the most likely scenario for the crediting period for which renewal is requested. The use of baseline stoves based on biomass-based fuels involves about 60 % of the total fuel used for cooking purposes in Kenya/B05/. Based on the review of the PDD/B01/, it is confirmed that due to rising population and economic hardships, the number of households



falling into using charcoal is on the increase. Thus, the use of charcoal is not decreasing. The baseline is thus not affected for the crediting period for which renewal is requested/B01/. Step 1.4: Assessment of the validity of the data and parameters Following data and parameters have changed the value at the time of renewal of crediting period:

1. NCV for charcoal at 0.029 TJ/tn This has changed due to the updated values from the IPCC data for the NCV for charcoal.

2. CO2E emission factor at 112 tCO2/TJ The value has changed due to the updated values from the IPCC default value.

3. fNRB at 0.8948 The fNRB value has been calculated by the PP. The input to the value are sourced from the national publications/B07-4,5/. This is in compliance with the para 12 of the CDM methodological tool: Calculation of the fraction of non-renewable biomass version 01/B08/.

4. Quantity of fuel savings by the project device at 0.669 tonnes/year The value is based on the default value in the methodology, TPDDTEC/B02/ (0.5 tonnes/capita/year) and the average number of persons in each household/B07-1,2/ and thus gives a value of 0.723 tonnes/year. The default value has been used for ex-ante estimations only and section 4 of the methodology, TPDDTEC/B02/ (p9-11/68). The value thus calculated is acceptable to the validation team.

5. EFp, nonCO2 remains the same although the project will not consider emissions from this source

PP has clarified that the parameter uses a value 0 and the value is conservative. 6. EFb,nonCO2,remains the same although the project will not consider emissions from

this source PP has clarified that the parameter uses a value 0 and the value is conservative. The values for the parameters are acceptable to the validation team. Step 2: Update the current baseline and the data and parameters Step 2.1: Update the current baseline Step 2.2: Update the data and parameters The values for the parameters have been updated in the PDD as listed in the Step 1.4 of the tool in section B.4 of the PDD/01-4/. A stepwise procedure has been used by the PP for the changes in the PDD/01-4/ and are acceptable to the validation team. The procedure has been provided in accordance with the “Tool to assess the validity of the original/current baseline and to update the baseline at the renewal of a crediting period”, version 03.0.1, EB 66 Annex 47/B05/ and meets the requirements of the Annex-Z: Gold Standard Procedures for the Renewal of a Crediting Period/B01-3/.

3.2 Correctness of the application of an approved baseline methodology for the determination of the continued validity of the baseline or its update, and the estimation of emission reductions for the applicable crediting period;

At the time of registration of the project activity, the project applied approved Gold Standard baseline and monitoring methodology Technologies and Practices to Displace Decentralized Thermal Energy Consumption version 1. This methodology was subsequently replaced by Technologies and Practices to Displace Decentralized Thermal Energy Consumption version 3.1/B02/. PP has correctly applied the applicable and valid methodology at the time of renewal of crediting period. This is in compliance with the requirement of section II of the Annex Z of the Gold standard requirements/B01/.



The applicability of the methodology has been assessed based on the knowledge of the project from the initial validation, subsequent verifications and the interviews with the project participant. The validation team determined the applicability of methodology Technologies and Practices to Displace Decentralized Thermal Energy Consumption (version 3.1) as follows:

Applicability condition of the methodology (Technologies and Practices to Displace Decentralized Thermal Energy Consumption), Version 3.1

Criteria fulfilled

Assessment by the validation team

This methodology is applicable to programmes or activities introducing technologies and/or practices that reduce or displace greenhouse gas (GHG) emissions from the thermal energy consumption of households and non-domestic premises. Examples of these technologies include the introduction of improved biomass or fossil fuel cookstoves, ovens, dryers, space and water heaters (solar and otherwise), heat retention cookers, solar cookers, bio-digesters, safe water supply and treatment technologies that displace the boiling of water, thermal insulation in cold climates, etc. Examples of practices include the improved application of such technologies, a shift from non-renewable to renewable fuel (e.g. shift to plant oil fired stoves), humidity control through improved storage and drying of fuels, etc. Project activities that claim emission reductions from improved practices only (e.g. there is no installation of improved devices) are expected to provide a detailed discussion of the chosen monitoring approach so as to demonstrate that emission reductions do indeed result from the practices introduced by the project activity.

Yes

No

Validation team confirms that the project activity is the introduction of charcoal cooking technology that reduces GHG emissions from household applications.

The project activity is implemented by a project proponent and can include additional project participants. The individual households and institutions do not act as project participants.

Yes

No

Based on the review of the PDD/01-4/, validation team confirms that the project activity is implemented by the project proponent, Burn Manufacturing and the individual households do not act as project participants.

The following conditions apply:

The project boundary needs to be clearly identified, and the technologies counted in the project are not included in any other voluntary market or CDM project activity (i.e. no double counting takes place). In some cases, there maybe another similar activity within

Yes

No

Based on the review of the PDD/01-4/, it is confirmed that the project boundary is the boundary of the host country, Kenya. It is confirmed by the PP that the technologies counted in the project are not included in any other voluntary market or CDM project




Criteria fulfilled


the same target area. Project proponents must therefore have a survey mechanism in place together with appropriate mitigation measures so as to prevent any possibility of double counting.

activity and are identified by unique serial numbers for the cookstoves. The record of all the serial numbers is maintained by the PP, Burn Manufacturing.

The technologies each have continuous useful energy outputs of less than 150kW per unit (defined as the total useful energy delivered from start to end of operation of a unit divided by time of operation). For technologies or practices that do not deliver thermal energy in the project scenario but only displace thermal energy supplied in the baseline scenario, the 150kW threshold applies to the displaced baseline technology.

Yes

No

Based on the review of the PDD/01-4/, it is confirmed that the technology (improved cookstoves) applicable in the project activity have continuous useful energy outputs of less than 150kW per unit: Household stoves = 1.175kW/04/. The value has been checked and confirmed by the validation team from the WBT report/B04/.

Using the baseline technology as a backup or auxiliary technology in parallel with the improved technology introduced by the project activity is permitted as long as a mechanism is put into place to encourage the removal of the old technology (e.g. discounted price for the improved technology) and the definitive discontinuity of its use. The project documentation must provide a clear description of the approach chosen and the monitoring plan must allow for a good understanding of the extent to which the baseline technology is still in use after the introduction of the improved technology.

Yes

No

Based on the review of the PDD/01-4/, it is confirmed that the project proponent has put in place a mechanism to encourage the removal of the old technology. The measures are listed as:

• Annual Monitoring Surveys will track the continued use of baseline technologies

• Project Fuel Tests will subsume the use of any traditional stove/fuel used.

• The parameter, Pp,y , is based on subsumed Project Fuel Tests and thus use of traditional stove/fuel is accounted for in project emissions calculations.

• Project participants will be incentivized to remove their old stoves, as the one year warranty of the project stove will not be valid if end-users have continued to use their baseline stove.

The project proponent must clearly communicate to all project participants the entity that is claiming ownership rights of and selling the emission reductions resulting from the project activity.

Yes

No

Based on the review of the PDD/01-4/, it is confirmed that the project proponent has a policy in place to make it clear the claim on the emission reductions resulting from the project activity. The mechanism involves:

• Transfer of carbon rights will be explained at local consultations and end-user technology trainings

Project activities making use of a new biomass feedstock in the project

Yes

No

Based on the review of the PDD/01-4/, it is confirmed that the project does




Criteria fulfilled


situation (e.g. shift from non-renewable to green charcoal, plant oil or renewable biomass briquettes) must comply with relevant Gold Standard specific requirements for biomass related project activities, as defined in the latest version of the Gold Standard rules. If the biomass feedstock is sourced from a dedicated plantation, the criteria must apply to both plantations established for the project activity AND existing plantations that were established in the context of other activities but will supply biomass feedstock.

not involve use of a new biomass feedstock.

Adequate evidence is supplied to demonstrate that indoor air pollution (IAP) conditions are not worsened compared to the baseline, and greenhouse gases (as listed in section II.1) emitted by the project fuel/stove combination are estimated with adequate precision. The project fuel/stove combination may include instances in which the project stove is a baseline stove.

Yes

No

Based on the review of the PDD/01-4/, it is confirmed that the project proponent conducts qualitative Surveys to investigate air quality with the project stove and to confirm that indoor air pollution (IAP) conditions are not worsened compared to the baseline.

Records of renewable fuel sales may not be used as sole parameters for emission reduction calculation, but may be used as data informing the equations in section II of this methodology. These records need to be correlated to data on distribution and results of field tests and surveys confirming (a) actual use of the renewable fuel and usage patterns (such as average fraction of non-renewable fuels used in mixed combustion or seasonal variation of fuel types), (b) GHG emissions, (c) evidence/justifications of CO levels not deteriorating (d) any further factors effecting emission reductions significantly.

Yes

No

Based on the review of the PDD/01-4/, it is confirmed that stove sales data in the sales database are used together with results of field tests and surveys to estimate GHG emissions.

The assessment of the project’s compliance with the applicability criteria of the methodology Technologies and Practices to Displace Decentralized Thermal Energy Consumption (version 3.1) as documented in the PDD/01-4/, which are evaluated in detail under assessment above in this report. Thus, the validation team confirm the applicability of the selected methodology to the proposed CDM project activity. The assessment above confirms to the requirement of Annex-Z/B01/.



3.3 Local stakeholder consultation process and its outcome

A local stakeholder consultation has not been conducted for the project activity. A justification has been provided why there is no need to conduct a complementary stakeholder consultation for the renewal of the crediting period. PP has clarified that due to the nature of project design complementary stakeholder’s consultation is not required as the feedbacks and customers’ surveys are factored in project stove design and improvement. CL 04 had been raised in this regard and has been resolved.

3.4 Sustainable Development assessment including the SD Matrix and DNHA

Sustainable development matrix has been updated in the GS Passport/03/ and the score for the indicator ‘Water quality and quantity’ and ‘Livelihood of the poor’ has been updated to Neutral. The SD Matrix has also been updated to change the title of the Indicator ‘Balance of payments and investment’ to ‘Access to investment’ in accordance with the GS requirements/B01/. The water purification technologies are not applicable to the project activity and thus the change is acceptable to the validation team. There are no changes to the Do No Harm assessment for the project activity. CAR 03 had been raised in this regard and has been resolved.

3.5 Revised SD monitoring plan

Sustainable development monitoring plan has been updated in the GS Passport/03/ and the score for the indicator ‘Water quality and quantity’ and ‘Livelihood of the poor’ has been updated to Neutral. The water purification technologies are not applicable to the project activity and thus the change is acceptable to the validation team. CAR 04 had been raised in this regard and has been resolved.



APPENDIX-A

List of findings

Finding CL 01


Description of finding(DOE) Burn Manufacturing is listed as the Project participant on the cover page of the PDD however Burn Manufacturing and ClimateCare Limited are listed as the project participants for the project activity in section A.4 of the PDD.



The PDD has been revised and ClimateCare added listed in cover page.

DOE Assessment #1

The assessment shall encompass all open issues in the

finding. In case of non-closure, additional corrective action

and DOE assessments (#2, #3, etc.) shall be added.

In cover page of PDD ClimateCare has been listed as the project participant, in section A.4 ClimateCare Limited and in Appendix 1 it is ClimateCare Ltd. The inconsistency in the name of the PP needs to be corrected.


(PP shall write a detailed and clear corrective action or further

information for clarification as per finding)

The name has been updated and its now consistent

DOE Assessment #2




The name of the project participant has been updated and is consistent on the cover page, section A.4 and Appendix 1 of the PDD.

Conclusion


To be checked during the next periodic verification



Finding CL 02



Finding CL 02


Description of finding(DOE) Following clarifications need to be provided in section B.2 of the PDD to meet the requirements of the methodology “Technologies and Practices to Displace Decentralized Thermal Energy Consumption”, version 02: 1. For applicability condition 1 of the methodology, the survey mechanism has not been provided. 2. For applicability condition 2 of the methodology, section A.4.3 of the PDD has been referred. However, there is no section A.4.3 of the PDD. Furthermore, section A.3 of the PDD lists only household stove and section B.2 of the PDD lists household stoves and institutional stoves.



The PDD has been revised and applicability conditions revised

DOE Assessment #1


1. For applicability condition 1 of the methodology, it is stated that “during the monitoring

period, the project will carry out sample surveys to identify their stoves and see if there

are other stoves out there which likely to be double counted”. It is not clear what

monitoring parameter shall be used for this.

2. For applicability condition 2 of the methodology, the reference has been changed to

section A.3 of the PDD. However, section A.1 of the PDD lists household stoves and

institutional stoves, section A.3 of the PDD lists only household stoves and section B.2

lists only household stoves.




The survey will involve checking the stoves in households and recording their serials numbers which will then be cross checked with project serial database to confirm that they are indeed burn stoves. The institutional stoves has been removed from the PDD

DOE Assessment #2




1. PP has clarified that the monitoring survey shall involve checking of the stoves in households and recording of the serial numbers. 2. The references have been changed in the PDD and now only household based stoves are applicable. Institutional stoves have been removed.



Finding CL 02

Conclusion





Finding CL 03


Description of finding(DOE) It is not clear from the description in section A.3, A.1 and B.2 of the PDD if the project activity involves household, commercial and institutional stoves. The proof of the energy outputs of less than 150kW per unit has not been provided to the validation team.



The project involves household stoves and it’s anticipated that institutional stoves will be distributed by the project in the near future. Therefore the project involves both household and institutional stoves. The energy output of the stove is measures and reported in the efficiency test report which was submitted to the DOE.

DOE Assessment #1


The information is still inconsistent in section A.3, A.1 and B.2 of the PDD and the type of stoves applicable for the project activity need to be provided consistently. The efficiency test report has not been provided to the DOE.




Only household stoves have been considered in the project Test report for household stove have been provided.

DOE Assessment #2




The information on the types of stoves applicable for the project activity has been revised in sections A.3, A.1 and B.2 of the PDD and now consistently refers to household based stoves only. Test report for the household based stove is provided and it is confirmed that the energy output of the stove is 1.175 kW.

Conclusion







Finding CL 04


Description of finding(DOE) A local stakeholder consultation has not been conducted for the project activity. A justification has been provided why there is no need to conduct a complementary stakeholder consultation for the renewal of the crediting period. However, Annex-Z states that “whenever possible, project participants shall conduct the complementary consultation prior to the submission of the request for a renewal of the crediting period.” It needs to be clarified why complementary consultation is not required for the project activity.



The nature of the project design determines whether a complementary stakeholder’s consultation is need or not. Based on the project design and previous verifications carried out and based on how the project customers relates to the project, a complementary consultation was found not to be necessary. Consultations are mostly done at project design level and their input determines how the design of the project is to be implemented. However, for our case, those views were considered earlier and now any comments from customers come in form of feedbacks and customers surveys which are then factored in project stove design and improvement. Therefore, a project wise complementary consultations was not considered necessary.

DOE Assessment #1


PP has clarified that due to the nature of project design complementary stakeholder’s consultation is not required as the feedbacks and customers surveys are factored in project stove design and improvement.

Conclusion





Finding CL 05


Description of finding(DOE) In section C.4 of the GS Passport, GHG gases carbon dioxide, methane and nitrous oxide have been checked. It needs to be clarified if all three gases are applicable to the project activity.



Finding CL 05



The project passport has been updated and only carbon dioxide gas has been considered in the project

DOE Assessment #1


The GS passport has been updated and only refers carbon dioxide as the applicable GHG gas.

Conclusion





Finding CL 06


Description of finding(DOE) It is not clear how the values for baseline emissions have been calculated in the ‘ER_Summary_Projection’ workbook of the ER sheet. It is not clear why the values for the ERs have been rounded up in ER_Tabulations workbook of the ER sheet.



The rounding of ER values have been removed and complete values are now shown and PDD ERs values updated. The baseline emissions vales are extrapolated based on the ER values. The extrapolation is based on fuel savings based on the assumed baseline efficiency. The factor for extrapolating is 1.86 which is the assumed baseline emissions divided by the ER values.

DOE Assessment #1


The rounding of the ER values in ‘ER_Summary_Projection’ workbook of the ER sheet has been corrected. The reason for the assumed baseline efficiency and the factor of 1.86 is not clear. The logic for the value needs to be justified.




The project uses the latest methodology which requires the project to calculate the emissions based on fuel savings. The formula applied does not calculate baseline emissions and therefore, the emission reductions by the project is equal to baseline emissions. The PDD and excel sheet has been updated.



Finding CL 06

DOE Assessment #2




PP has clarified that the equation (1) from the methodology has been used for the calculation of the emission reductions and does not include separate calculations of baseline, project and leakage emissions. The PDD and ER sheet have been updated.

Conclusion





Finding CAR 01


Description of finding(DOE) Step 1.2 of the section B.4 of the PDD: In accordance with the requirements of the Tool to assess the validity of the original/current baseline and to update the baseline at the renewal of a crediting period/B05/, Evaluation of the conditions used to determine the baseline emissions in the previous crediting period are still valid is not provided. It is required to assess the availability of new fuels or raw materials and the impact of electricity or fuel prices in the identification of the current practice for the baseline emissions. Step 1.3 of the section B.4 of the PDD: In accordance with the requirements of the Tool to assess the validity of the original/current baseline and to update the baseline at the renewal of a crediting period/B05/, Evaluate the penetration rate of different technologies that are available in the market and evaluate how they could affect the baseline. Step 1.4 of the section B.4 of the PDD: It is not clear which data and parameters have been assessed by the PP for the renewal of crediting period. Step 2 of the Tool to assess the validity of the original/current baseline and to update the baseline at the renewal of a crediting period has not been provided even though there are changes as mentioned in Step 1.4 of the section B.4 of the PDD. The references to the information provided in section B.4 of the PDD have not been provided.



Section B.4 of the PDD has been updated and the baseline review steps have been updated.



Finding CAR 01

DOE Assessment #1


Step 1.2 of the section B.4 of the PDD: An objective assessment of the new fuels or raw materials and the impact of electricity or fuel prices in the identification of the current practice for the baseline emissions is not provided with the references. Step 1.3 of the section B.4 of the PDD: An objective assessment of the penetration rate of different technologies that are available in the market and evaluate how they could affect the baseline is not provided with the references. Step 1.4 of the section B.4 of the PDD: Exact description of the parameters and data changed has not been provided. Step 2 of the section B.4 of the PDD: There are changes in Step 1.4 of the section B.4 of the PDD, thus Step 2 is not applicable. The references to the information provided in section B.4 of the PDD have not been provided.




Step 1.2; the assessment is based on professional judgement of the project developer and the clear understanding on the Kenyan household fuel situation and cooking references. Electricity in Kenya is used mostly in lighting homes and powering electronic equipment and only the affluent households use it for cooking. Almost all middle class homes use charcoal while the lower incomes use either charcoal or wood. The prices of charcoal has always risen and they are expected to continue with the trend. Step 1.3: there is increased population growth rate and new households are being added as more people start their families. At 44 millions1 people with an average size of 4.4, there are about 12 million households. It’s estimated that about 68% of Kenyans rely on fuelwood and charcoal for cooking translating to about 6.8 million households who use wood and charcoal. With this huge number of households, there is still a lot of demand for charcoal and wood, and increased penetration of stoves will have minimal impact in short term. Step 1.4: values have been attached to the data parameters in the PDD The project has used the National Energy policy to review the prevailing situation with regard to energy usage and fuel trends2.

1 http://www.opendata.go.ke/datasets/county-population-2009?page=4 2 http://www.energy.go.ke/index.php/resources/file/837-national-energy-policy-final-draft.html

http://www.opendata.go.ke/datasets/county-population-2009?page=4

http://www.energy.go.ke/index.php/resources/file/837-national-energy-policy-final-draft.html



Finding CAR 01

DOE Assessment #2




Step 1.2: PP has provided reference to the National Energy Policy of Kenya to support the existing fuel usage scenario in Kenya. Step 1.3: PP has used the references for the penetration rate of the different technologies in the Kenyan market. Step 1.4: The values have been provided in the PDD and Step 2 of the tool added to the PDD section B.4.

Conclusion





Finding CAR 02


Description of finding(DOE) In accordance with the requirements of Section I of the Annex-Z, PDD has not been provided in the track change mode.



Revised project PDD in track mode have been provided to the DOE.

DOE Assessment #1


The PDD has been provided in the track change mode to meet the requirements of Section I of the Annex-Z

Conclusion





Finding CAR 03




Finding CAR 03

Description of finding(DOE) In accordance with the requirements of Section II of the Annex-Z, an assessment of sustainable development assessment has not been provided in the GS passport and a discussion on the revision of the 12 Sustainable Development (SD) indicators has not been provided.



The project passport has not been revised since the project design remains the same. The Sustainable development matrix was analysed and reviewed but no updates or revisions have been made.

DOE Assessment #1


The parameter Water quality and quantity has been changed and thus the justification for the same needs to be provided.




In the design change request to the GS, the water quality and quantity were changed. The request for design change for the project has been submitted to the GS and are awaiting approval. Since the project is a stove project and does not involve water, the indicator was assessed and its scoring changed to neutral since it does not apply to the project.

DOE Assessment #2




PP has clarified that the indicator for water quality and quantity has been changed since the project activity no more involve the use of water purification technologies. The request for design change to the previous crediting period has already been submitted.

Conclusion





Finding CAR 04


Description of finding(DOE) In accordance with the requirements of Section II of the Annex-Z, discussion on whether there is a need to prepare a revised sustainable development monitoring plan to accommodate any changes and/or comments from the local stakeholders.



Finding CAR 04



The project analysis and review of the sustainable development monitoring have been done and no changes have been made.

DOE Assessment #1


The indicator for Water quality and quantity has been changed and the same needs to be assessed.




In the design change request to the GS, the water quality and quantity were changed. The request for design change for the project has been submitted to the GS and are awaiting approval. Since the project is a stove project and does not involve water, the indicator was assessed and removed from the passport since it does not apply to the project.

DOE Assessment #2




PP has clarified that the monitoring parameters for water quality and quantity has been changed since the project activity no more involve the use of water purification technologies. The request for design change to the previous crediting period has already been submitted.

Conclusion





Finding CAR 05


Description of finding(DOE) The reason for the change of the value for the parameters in section B.6.2 of the PDD, EFb,nonCO2, EFp, nonCO2 is not provided. The parameter Sp,SC,y, is not provided in the PDD section B.7.1.



This values are set to zero because the project deliberately decided not to consider them for conservativeness purposes and also due to simplification of monitoring. There is no parameter Sp,SC,y, in the methodology which requires monitoring.



Finding CAR 05

DOE Assessment #1


All the changes to the data and parameters need to be provided in Step 1.4 of the section B.4 of the PDD.




The two parameters has been mentioned in section B.4. Although their values will not change, the project has conservatively opted not to consider emissions from this sources. The section has been updated and link to National Energy policy has been provided, a report which provides an analysis of energy situation in the country.

DOE Assessment #2




The Step 1.4 of the PDD has been updated with the parameters changed during the crediting period.

Conclusion





Finding CAR 06


Description of finding(DOE) In section B.4 of the PDD, the value of Bold, appliance, survey uses a factor for conversion of charcoal to wood. However, in section B.6.2 and B.6.3 of the PDD a direct value of NCVcharcoal is used by the project activity. The value of the parameter Bold in the ER sheet does not match with the value in section B.4 of the PDD.



The charcoal conversion factor in section B.4 of the PDD has been removed and instead a direct value is applied. The value parameters for Bold has been updated in the PDD



Finding CAR 06

DOE Assessment #1


The charcoal conversion factor has been removed, however the source of the value for Bold parameter is not provided clearly in section B.4 of the PDD. The source of the value has been provided for in section B.4. The value is derived from the report don’t for the ministry of energy by a third part regarding charcoal consumption trends in Kenya by households. The link to the report is provided for in footnote.




The Bold value has been updated and clear calculation and references provided.

DOE Assessment #2




The value for Bold has been updated and the calculations with the references provided in the ER sheet.

Conclusion







APPENDIX B

Certificates of Competence

validation report for the renewal of the crediting period

Documents