Yellow Ipê Grouped REDD Project

Audit Analysis

The Yellow Ipê Grouped REDD Project is a VCS-registered avoided-deforestation project in Brazil with a verified investment-test additionality assessment, a 19% buffer pool, and no material findings. The project delivered only about 2% of its pro-rata ex-ante expectation for the elapsed monitoring period, indicating a conservative (under-delivering) credit issuance profile. Key concerns include a project-specific baseline, a 0% leakage deduction, and a minor reversal event (shallow cut) that was addressed by removing affected areas from credit generation.

Project Description

Red Flags

• ⚠Verified ERR of 16,772 tCO2e represents only ~2% of the pro-rata ex-ante expectation (~900,000 tCO2e) for the elapsed crediting period, suggesting the baseline deforestation assumption was significantly over-optimistic
• ⚠0% leakage deduction applied despite the project being a REDD+ avoided-conversion project in a region with active deforestation pressure; the quantified justification is noted but the zero deduction warrants scrutiny
• ⚠A reversal event (shallow cut) was reported in the 2023 verification report but was not addressed in the 2021 monitoring report, indicating a gap in early detection

Credit Vintages