Bandeira and Capelli Ceramics Fuel Switching Project

Audit Analysis

The Bandeira and Capelli Ceramics fuel-switching project has a VVB-confirmed additionality test and a reputable verifier (RINA Services), but is undermined by a severe FNRB discrepancy (95.03 vs 0.994 across verification reports), seven corrective actions including a double-counting finding, and a project-specific baseline. The 2024 monitoring period delivered only roughly 24% of the pro-rata expectation derived from the 2017 lifetime estimate, raising questions about production consistency and credit reliability.

Project Description

Red Flags

• ⚠FNRB value of 95.03 in the 2024 verification report versus 0.994 in the 2011 report represents an order-of-magnitude discrepancy that, if unresolved, could indicate a 95× overstatement of the emissions factor and thus of all credit claims
• ⚠Seven corrective actions from the 2011 verification include a double-counting finding (CAR01: enameled ceramics counted twice for Capelli), outdated production data (CAR03), and missing calibration certificates (CAR05)
• ⚠Material finding: Capelli Ceramic used Algaroba wood not predicted in the VCS PDD, indicating a deviation from the approved project design
• ⚠Usage monitoring relies on self-reporting by the project proponent, with no independent verification of fuel consumption or production volumes
• ⚠The 2024 monitoring period (2020–2022) verified only 7,485 tCO₂e against a pro-rata expectation of roughly 30,600 tCO₂e derived from the 2017 lifetime estimate of 111,442 tCO₂e over the 2006–2016 crediting period, a delivery ratio of approximately 24%

Credit Vintages