Heilongjiang Huanan Hengdaishan East Wind Power Project

Audit Analysis

A CDM wind power project in China with a VVB-confirmed combined additionality test and a financially verified IRR below benchmark, but weakened by an outdated 2006 grid emission factor, a contradiction in baseline method between the PDD and monitoring reports, and a 0% leakage deduction that lacks any stated justification. The project is inherently low-risk (wind displacing grid electricity), yet several transparency and documentation gaps prevent a higher rating.

Project Description

Red Flags

• ⚠Grid emission factor of 1.1461 tCO2/MWh is from 2006, nearly a decade before the monitoring period, risking over-estimation of avoided emissions as China's grid decarbonised.
• ⚠Leakage deduction is 0% with the justification recorded as 'not addressed' in the 2012 monitoring report, despite the 2010 report having described it as 'quantified' — an inconsistency that undermines the leakage analysis.
• ⚠Baseline method is described as 'project-specific' in the 2012 monitoring report but 'jurisdictional' in the PDD, creating ambiguity about which baseline was actually applied.
• ⚠No buffer pool percentage is stated in any available document, leaving permanence risk unquantified even though wind projects carry minimal reversal risk.

Credit Vintages