Fujian Nan'an Shengda Aluminium Recycling Project

Audit Analysis

The Fujian Nan'an Shengda Aluminium Recycling Project holds a VCS registration under VMR0007 with a VVB-verified investment additionality test, but the verification report identified 14 material findings spanning missing baseline equations, IRR/FSR calculation gaps, methodology applicability ambiguity (Case A vs B), and inclusion of non-qualifying steel material. Four cross-document contradictions—including a 55% discrepancy in claimed ERR and a 17.5% grid emission factor mismatch—undermine confidence in the credit quantity. The project's safeguards (FPIC, grievance mechanism) are present but inconsistently documented, and the 0% leakage deduction is supported by contradictory justifications across the verification and monitoring reports.

Project Description

Red Flags

• ⚠14 material findings in the verification report, including missing GHG reduction calculations, missing baseline equations, and missing consent documentation in the PD&MR
• ⚠55% discrepancy in total ERR between the validation report (92,095) and the financial document (59,453)
• ⚠Methodology applicability ambiguity (Case A vs B) and inclusion of steel material in credit calculations, raising over-crediting risk
• ⚠Contradictory leakage justifications: verification report states 'deemed negligible' while the monitoring report states 'quantified'
• ⚠IRR/FSR additionality calculations flagged as unclear, with a 10% discount rate and missing depreciation identified as errors

Credit Vintages

No issuances recorded on the registry.