Chongqing Iron & Steel Co. Ltd. Waste Gas to Electricity Project

Audit Analysis

A CDM waste-gas-to-electricity project with a solid combined additionality test confirmed by the VVB, but undermined by six material findings (including a corrective action on monitoring-plan compliance), a contradictory baseline method (jurisdictional vs. project-specific), a 0% leakage deduction with inconsistent justification, and conflicting ERR figures across monitoring reports. The project sits under the older CDM standard, so the absence of a buffer pool and CORSIA/CCP designations is expected, but the data-reliability issues lower confidence in the verified credits.

Project Description

Red Flags

• ⚠Six material findings in the validation report, including CAR #4 requiring the project proponent to revise the monitoring plan for full compliance with the monitoring methodology
• ⚠Baseline method contradicts between documents: the validation report (2008) describes a project-specific baseline while the monitoring report (2011) refers to a jurisdictional baseline
• ⚠Two monitoring reports give materially different claimed ERR figures (212,686 in the 2010 report vs. 57,308 in the 2011 report), creating uncertainty about the true ex-ante expectation
• ⚠Leakage deduction is 0% yet the justification is inconsistent: the validation report deems leakage negligible while the monitoring report labels it 'quantified'
• ⚠Two corrective actions remain open, including a requirement to revise and improve project design documents based on expert opinions

Credit Vintages