Aços Villares Natural gas fuel switch project

Audit Analysis

A CDM natural gas fuel switch project in Brazil with VVB-confirmed additionality (combined test by SGS UK), but undermined by a material finding on monitoring transparency, a contradictory leakage justification across documents, and a notable discrepancy in reported emission reductions between two monitoring reports. The project lacks a buffer pool, quantified permanence safeguards, and several key MRV data points, leaving moderate uncertainty around the robustness of its credit claims.

Project Description

Red Flags

• ⚠Material finding (CAR #01) in the 2012 monitoring report: the initial revised monitoring plan did not reflect changes in a transparent manner, with a corrective action still required to revise the internal monitoring procedure.
• ⚠Leakage justification is contradictory: the PDD (2007) states leakage was 'deemed negligible' while the 2012 monitoring report records it as 'not addressed,' leaving the 0% deduction without a consistent, documented rationale.
• ⚠Two monitoring reports report materially different total ERR figures (30,074 tCO₂e in the 2012 report vs. 55,274 tCO₂e in the 2009 report), and no verified ERR figure is available to reconcile the difference.

Credit Vintages