Heilongjiang Yilan Yunling Wind Power Project

Audit Analysis

A CDM wind power project in China with a VVB-confirmed combined additionality test and an appropriate grid-based baseline, but undermined by four material findings requiring corrective action in the PDD's financial analysis, a leakage assessment that was ultimately not addressed, and a significant discrepancy between the ex-ante ERR estimate (119,838 tCO₂e) and the figure reported in the monitoring period (75,112 tCO₂e). The project is inherently low-risk for reversal given its avoidance nature, but documentation gaps and unresolved contradictions limit confidence in the credit quantity.

Project Description

Red Flags

• ⚠Four material findings (CARs) in the validation report indicate errors in the PDD's financial analysis, including an incorrect emission factor tool version, a misdescription of electricity imports between grid regions, an omitted interest component in the IRR calculation, and an operating cost inconsistency with the approved FSR
• ⚠Leakage justification is recorded as 'not addressed' in the later monitoring report (June 2013), contradicting an earlier monitoring report (August 2012) that described it as 'quantified' — the 0% leakage deduction lacks a documented rationale
• ⚠The total ERR claimed differs substantially between the validation report (119,838 tCO₂e) and the monitoring report (75,112 tCO₂e), a discrepancy of roughly 37% that is not explained in the available documents
• ⚠No verified ERR figure (total_err_verified) was found in any available document, making it impossible to confirm actual delivery against the ex-ante estimate

Credit Vintages