Liaoning Sengda Waste Plastic Recycling Project

Audit Analysis

The Liaoning Sengda Waste Plastic Recycling Project has a verified investment-test additionality and a reputable VVB, but is undermined by a 0% leakage deduction with contradictory justifications across documents, a project-specific baseline with no stated reassessment, and a verified ERR that is only about 35% of the pro-rata expectation for the elapsed monitoring period. Six material findings and six corrective actions in the verification report indicate unresolved technical and methodological gaps that temper confidence in the credit quality.

Project Description

Red Flags

• ⚠Verified ERR of 22,827 tCO₂e is only ~35% of the pro-rata expectation (≈66,006 tCO₂e) for the 1.5-year monitoring period, suggesting the ex-ante estimate may have been substantially over-optimistic.
• ⚠Leakage deduction is 0% yet the justification is contradictory: the monitoring report describes it as 'quantified' while the validation report (2025-03-12) states it was 'not addressed.'
• ⚠The PDD itself contains two different lifetime ERR figures (440,040 in the 2025-02-10 version vs 536,566 in the 2024-03-06 version), indicating an unresolved revision.
• ⚠Six material findings in the verification report, including non-compliant NCV source for natural gas and unclear PET bottle disposal practice for leakage calculation.

Credit Vintages