Afforestation in cooperation with local landowners for Forestal San Pedro S.A

Audit Analysis

This VCS afforestation project in Paraguay has a confirmed investment-test additionality and a 15% buffer pool, but is undermined by the absence of FPIC, a grievance mechanism, and documented safeguards in the most recent verification report. Material findings reveal 65.5 ha of project area lost to storm damage and site conditions, and the buffer pool was reduced from 20% to 15% between reporting cycles. The project-specific baseline and a 0% leakage deduction with only a 'deemed negligible' justification leave meaningful over-crediting risk unaddressed.

Project Description

Red Flags

• ⚠FPIC, grievance mechanism, safeguards, and benefit-sharing are all reported as absent in the November 2024 verification report, contradicting the October 2024 report that listed them as present — the more recent document is privileged, leaving a serious social-compliance gap
• ⚠Buffer pool percentage dropped from 20% (March 2022 verification) to 15% (October 2024 verification), reducing the permanence safety margin by a quarter
• ⚠65.5 ha of project area lost (44.5 ha to storm in FMU 1, 21 ha to site conditions in FMUs 8-9) with the justification that these areas 'were not previously verified, so no carbon loss took place' — a claim that warrants closer scrutiny
• ⚠Leakage deduction is 0% with only a 'deemed negligible' justification; no quantified analysis or methodology-specific leakage pathway assessment is documented
• ⚠Ten contradictions across documents, including on FPIC, grievance mechanism, safeguards, benefit-sharing, additionality test type, buffer pool, and leakage treatment, indicating inconsistent reporting

Credit Vintages