Hubei Jiulong PET Recycling Project

Audit Analysis

The Hubei Jiulong PET Recycling Project has a confirmed investment-based additionality test and low permanence risk typical of waste-handling activities, but the verification report identified ten material findings including fundamental baseline calculation errors (using PET production quantity instead of waste PET collected quantity in both ex-ante and ex-post calculations) and ten required corrective actions. The project delivered only about 39% of the pro-rata expectation for the elapsed monitoring period, which is conservative but raises questions about the accuracy of the original ex-ante estimate. Contradictions between the validation and verification reports on safeguards, grievance mechanisms, and benefit sharing further undermine confidence in the project's social compliance documentation.

Project Description

Red Flags

• ⚠Ex-ante and ex-post baseline emissions calculations both incorrectly used PET production quantity instead of waste PET collected quantity, a fundamental error affecting the entire credit quantity
• ⚠Ten material findings and ten corrective actions required in the verification report, including missing conclusions in multiple sections of the VVB report and an incomplete IRR
• ⚠Contradictions between validation and verification reports on safeguards, grievance mechanism, and benefit sharing (validation says present, verification says absent)
• ⚠Leakage deduction of 0% justified only as 'deemed negligible' without detailed quantification or scenario analysis
• ⚠FPIC not conducted and grievance mechanism status contradictory across documents

Credit Vintages