Bosques del Uruguay II (BDU II) Afforestation through High Quality Timber in Grasslands Project

Audit Analysis

BDU II is a VCS afforestation project in Uruguay with a confirmed investment-test additionality, a 10% buffer pool, and no reversal events, but it is burdened by 28 material findings and 33 corrective actions spanning area inconsistencies, ERR spreadsheet opacity, and stakeholder-engagement gaps. The verified ERR for the 2021–2024 monitoring period (≈97,788 tCO₂e) represents only about 13 % of the pro-rata lifetime expectation, suggesting the ex-ante estimate may have been optimistic or that operational issues reduced sequestration. Multiple cross-document contradictions (additionality test type, FPIC status, leakage justification, ERR figures) further erode confidence in the data record.

Project Description

Red Flags

• ⚠Verified ERR of 97,788 tCO₂e is only ~13 % of the pro-rata lifetime expectation (≈749,000 tCO₂e for the 3-year monitoring window), indicating significant under-delivery relative to the ex-ante estimate of 14.63 M tCO₂e over 60 years.
• ⚠28 material findings and 33 corrective actions were raised, including inconsistent project area, ERR spreadsheet opacity, missing SDG quantification, and incomplete biodiversity monitoring plans.
• ⚠Contradiction on FPIC: the verification report states FPIC was conducted, while a same-date appendix states it was not — a fundamental safeguards discrepancy.
• ⚠PDD (2021) reports a total ERR of 243,988 tCO₂e, which is 2.5× the monitoring-report figure of 97,788 tCO₂e; the basis for the PDD figure is unclear.
• ⚠Leakage justification is contradictory: the verification report says 'quantified' while the monitoring report says 'deemed negligible,' yet the deduction is 0 % in both.

Credit Vintages