Fugong Labuluo Hydropower Project

Audit Analysis

A CDM hydropower project in China using the well-established ACM0002 methodology, with a reputable VVB (TÜV NORD CERT) and pro-rata ER delivery of approximately 100% of the ex-ante expectation. However, seven material findings in the monitoring report reveal significant documentation and calculation compliance issues, and the additionality test type is not explicitly confirmed in the extracted record. Three contradictions between the validation and monitoring reports (baseline method, leakage justification, and ERR figures) reduce confidence in data consistency.

Project Description

Red Flags

• ⚠Seven material findings in the monitoring report (2022) flag incorrect emission-source demonstrations, wrong EGfacility,y definitions, PEy calculation errors, and EFgrid rounding errors in the ER calculation — all requiring corrective action
• ⚠Baseline method is stated as 'project-specific' in the monitoring report but 'jurisdictional' in the validation report, creating ambiguity about the actual baseline approach
• ⚠Additionality test type and VVB confirmation are not stated in the extracted record, leaving a gap in verifying a core CDM requirement
• ⚠Leakage justification is contradictory: 'quantified' in the monitoring report versus 'deemed negligible' in the validation report, despite a 0% deduction in both

Credit Vintages