Hubei Hongshan IFM (Conversion Of Logged To Protected Forest) Project

Audit Analysis

The Hubei Hongshan IFM project is currently On Hold in the VCS registry, and the extracted record contains 12 inter-document contradictions spanning additionality, leakage, ERR figures, and safeguards. While the project has a 22% buffer pool, no reversal events, and a VVB-confirmed investment test, the internal inconsistency in claimed versus verified ERR (1,738,565 vs 1,356,080 in the same monitoring report) and the additionality verification contradiction between the 2021 verification report and the 2025 issuance document raise serious data-reliability concerns that undermine confidence in the credit claims.

Project Description

Red Flags

• ⚠Registry status is On Hold — the project has been suspended by the VCS registry, indicating unresolved compliance or verification issues
• ⚠Internal contradiction in the 2023 monitoring report: claimed ERR of 1,738,565 vs verified ERR of 1,356,080 in the same document, suggesting a ~13% over-claiming discrepancy
• ⚠Additionality verification contradicted: the 2021 verification report confirms VVB verification, but the 2025 issuance document records it as not verified — a fundamental integrity concern
• ⚠Leakage treatment inconsistent across documents: 0% deduction with 'deemed negligible' justification (2019 verification) vs 20% deduction with 'quantified' justification (2023 monitoring report)
• ⚠Project-specific baseline with no documented reassessment date, limiting confidence in baseline robustness over the 30-year crediting period

Credit Vintages