Inner Mongolia Keyihe IFM (Conversion Of Logged To Protected Forest) Project

Audit Analysis

The Inner Mongolia Keyihe IFM project has a technically sound design with VVB-confirmed additionality, a 22% buffer pool, and no reported reversal events, but its registry status of 'On Hold' signals a serious unresolved compliance issue. The project-specific baseline, 0% leakage deduction with a thin 'deemed negligible' justification, and a corrective action on uncertainty calculation methodology compound the risk. Documentation is reasonably comprehensive across 25 sources, but the On Hold status and corrective actions undermine confidence in the integrity of the credit claims.

Project Description

Red Flags

• ⚠Registry status is 'On Hold' per the VCS notification letter, indicating a serious unresolved compliance or verification issue that suspends the project's credit validity
• ⚠Leakage deduction is 0% with only a 'deemed negligible' justification, which is weak for a forestry project converting logged to protected forest where displaced logging is a plausible leakage pathway
• ⚠A Corrective Action Request (CAR) was issued stating that total uncertainty for the improved forest management activities was not calculated in a correct and transparent way, alongside 5 Clarification Requests
• ⚠Baseline is project-specific rather than jurisdictional, increasing the risk of baseline over- or under-estimation

Credit Vintages