Verification Report: Loru Forest Project

VerificationReport:LoruForestProject

Monitoring Period: 16 January 2013 to 15 January 2015

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NameofReviewer:DrNoimUddin,SeniorConsultant,ClimatePolicyandMarketsAdvisory(CPMA)InternationalAB

DateofReview:

Initialdeskreview16-22Nov2015;Fieldsitevisit23-26November2015;VerificationandReporting2-14Dec2015

ProjectName:LoruForestProject

AnavoideddeforestationprojectatLoru,SantoVanuatuundertheNakauProgram:AnIndigenousForestConservationProgramThroughPaymentsforEcosystemServices

ProjectDescription:

TheLoruForestProject(witheligibleforestareaof165.6hamadeupof1landparcels)inLuganville,SantoofVanuatuemploysthelegalinstrumentofaCommunityConservationAreatoprotectthetallcoastal rainforest within the project boundary. The project seeks to manage the area throughimplementationoftheLoruAreaManagementPlan,whichincludestheremovalofcattlefromtheareaandtoreducetheimpactofinvasiveweedswithinProjectArea.Theprojectwillestablishatreenurserywiththeclantogeneraterevenueandpromoteforestconservationandincreasesplantingofproductivetreespecies.

The project is divided into three management zones. Zone A – Avoided Deforestation wheresecondaryforesttoberehabilitatedthroughtheremovalofcattleandagreementnottoclearthearea for gardens or copra during project period. Zone B – Enhanced Forest Regeneration wherethickettobeweededofaggressiveherbaceousvinesandmanagedtoenhancenaturalregeneration.ZoneC–AgroforestryNonforestlandcurrentlyinfestedwithinvasivevines.

However,nocarbonrevenues fromZoneBandZoneCwillbegeneratedbut income isgeneratedfromZoneCandrehabilitatesdegradedareasunderZoneB.

TheLoruForestProjectaimstoprotecttheLorucoastalrainforest(oneofthelaststandsoflowlandrainforestontheEastCoastofEspirituSanto)anddeforestationandforestdegradation.TheprojectalsoaimstoprovidelivelihoodbenefitsfortheSerakarClan(landowners).Theprojectfurtheraimsto provide training in nut processing for women in the whole Khole community as an additionalincomesourcesthatreliesdirectlyonforestprotection.

ListofDocumentsReviewed:

1. Loru Forest Project – Project Description (PD) Part A: General Description (D3.2a v1.0,20151009)

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2. Loru Forest Project – Project Descriptions (PD) Part B: PES Accounting (D3.2b v1.0,20151009)

3. Technical Specifications Module: (C) AD-DtPF: Avoided Deforestation – Deforestation toProtectedForestV.10fortheNakauProgram(D2.2.1V1.0,20150815)

4. Nakau Methodology Framework: General Methodology for the Nakau Program – AnIndigenous Forest Conservation Program Through Payments for Ecosystem Services (D2.1v1.0,20140428)

5. LoruForestProject–PESAgreement(D1.3v1.0,20151009)6. Loru Forest Project – Project Coordinator License Agreement between Live & Learn

EnvironmentalEducationVanuatuandtheNakauProgramPtyLtd(D1.4v1.0,20151009)7. Loru Forest Project – Program Agreement between the Nakau Program Operator and

SerthiacBusiness(D1.2v1.0,20151009)8. Project Development Agreement between Live & Learn Vanuatu and Serakar Family of

Khole,EspirituSanto(16January2013)9. Certificate of Incorporation of Committee of a Charitable Association, Live & Learn

Environmental Education Society Association, Vanuatu Financial Services Commission,RepublicofVanuatu,17April2001

10. CommunityConservationAreaRegistration(CCA)Notice–LoruProtectedArea16Nov2015(viaemailnotification)

11. DraftSaleandPurchaseAgreement12. LoruProtectedAreaManagementPlan,201513. LoruConservationArea–EducationProgramReport14. LoruCarbonBudgetandPricing15. LoruForestInventory16. SerthiacBusinessPlan17. LoruPIN(D3.3v1.0,20140606)18. Ser-Thiac Business Name Registration Certificate, Vanuatu Financial Services Commission

(RegistrationNo.013450,dated07Aug2014)19. Live&LearnEnvironmentalEducationFinanceManual201420. Live&LearnEnvironmentalEducationGoodPracticeManual201021. Live&LearnEnvironmentalEducationRecruitmentPolicy22. Annual Audit Report, Live & Learn Environmental Education Society Committee (Inc)

VanuatuFinanceStatement30June201423. Memorandum of Understanding between Live & Learn Environmental Education (LLEE

Vanuatu)andtheVanuatuDepartmentofForests(2012)24. Memorandum of Understanding between Live & Learn Environmental Education (LLEE

Vanuatu)andSanmaProvincialGovernment25. Live&LearnEnvironmentalEducationVanuatu,FieldTripReports(July,Aug,Sept,Oct2014)26. Mandate forManagement of Loru ProtectedArea, Custom Landowners of Loru Protected

Area,20Sept201527. ClimateChangeandREDD+EducationManual201228. Agreement for Serthiac Board to Sign Loru PES Agreement, Custom Landowners of Loru

ProtectedArea,13Nov201529. PESAgreementandProgramAgreementParticipationReport,13Nov201530. AgreementforSerthiacBoardtoSignLoruPESAgreementandLoruProgramAgreement,12

Nov201531. Acceptanceof LoruForestProjectPDPartAD3.2av1.020151009andLoruForestProject

PartBD3.2bv1.020151009,13Nov201532. PDSummaryReportSigned33. NakauProgramManagementReport2013

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34. ProjectOwnerEntityParticipationReport,LoruForestProject,Nov201435. NakauSalesRegister36. NationalForestAct200137. ShareholderAgreementtoConductaSocialEnterprise,TheNakauProgramPtyLtdandthe

Shareholders(Live&LearnandEkos),201538. DonnaKalfatak,LoruProtectedAreaRapidBiodiversityAssessmentReport,17-18Nov201439. KholeAgroforestryPlotDesign,Live&LearnCommunityREDD+Project(draft)40. PhilemonAla, LoruConservationAreaTerrestrialBiodiversityAssessmentReport forREDD

ProjectofLive&Learn16-19Nov201441. LoruForestProject–MonitoringReport1,2015(D3.3(1)v1.020151009b)42. LoruLivelihoodImpactMonitoringGuideandMethodologyforSocioeconomicBaseline43. LoruForestProject,ProtectedAreaBoundaryCoordinates44. PlanVivoFoundation,ValidationofMethodologyElementsof theNakauProgram21April

201545. VCSMonitoringReportTemplate46. Director’sCertificate–Monitoring12Dec201547. Memo dated 12 Aug 2015, Proposed Audi Procedure (from Sean Weaver and Robbie

HendersonofNakauProgramtoEvaSchoofandChrisStephensonofPlanVivo)48. LoruProtectedAreaBoundaryMarking201449. Contract Amendment, Amendment to Loru Project PES Agreement D1.3 v0.1, 20151009,

dated25Jan201650. LoruForestProject,QGISFile

Descriptionoffieldvisits(includinglistofsitesvisitedandindividuals/groupsinterviewed):

VerificationofLoruForestProject–MonitoringReport1,2015wasconducted inconjunctionwithvalidationofLoruForestProject.

During23to26November2015,DrNoimUddinconductedfieldsitevisitandinspection.Sitevisitinspection included field visit into eligible forest area and performing interview with ProjectStakeholders including – Project Coordinator (Live & Learn Vanuatu), Program Operator (NakauProgram),andProjectOwner(SerThiac),anumberofstakeholdersandcommunities.

Field visit was conducted as per on-site visit plan dated 17 Nov 2015. Field visit started with aninceptionmeetingwithProgramOperatorandProjectCoordinatoron23Nov2015inPortVilla.On24Nov2015,anopeningmeetingwasheldwithProjectCoordinatoratLive&LearnVanuatu.On-siteauditprocess,confidentialityandrequirementsasperPlanVivoTermsofReferenceforProjectValidation (v.2013)were described. Followed by inceptionmeeting, stakeholder consultationwascarriedoutinPortVillaon24Nov2015.Fieldvisitatprojectsiteandcommunityconsultationwasconducted in Santo,Vanuatuduring 25Nov2015. Rests stakeholderswere interviewedduring 26Nov2015inPortVila(followingtableprovidesdetailsofinterview).AclosingmeetingwasheldwithProgramOperatorandProjectCoordinatoron26Nov2015.Duringtheclose-outmeeting,findingsfromon-sitevisitweresharedwithProgramOperatorandProjectCoordinator(asalsolistedinTable1:Summaryofmajorandminorcorrectiveactions).

Followingtableprovidesdetailsofinterview.

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Date Name Position&Department Topics23-26.11.2015 AnjaliNelson Co-Director,Nakau

ProgramOperator24-26.11.2015 GlarindaAndre REDD+Project

Coordinator,Live&LearnVanuatu

24-26.11.2015 SergeWarakar REDD+ProjectOfficer,Live&LearnVanuatu

EffectiveandTransparentProjectGovernance,AdministrativeCapabilities,TechnicalCapabilities,Socialcapabilities,MonitoringandReportingcapabilities,Benefitsharingandequity,Saleagreementsandpayments,Socio-economicimpactassessmentandmonitoringplan,Community-ledplanning

24.11.2015 EphraimD.Songi

VCS

24.11.2015 WatsonLui DeputyDirector,DepartmentofForestry

24.11.2015 SamsonLulu REDD+Ext.&OutreachOfficer,DepartmentofForestry

24.11.2015 GodfreyBome SeniorForestOfficer,DepartmentofForestry

NationalREDD+ReadinessProgram,EcosystemandLivelihoodbenefits,ForestInventory,Traceabilityanddoublecounting,

24.11.2015 DickTomker RegionalForestOfficerNorth,DepartmentofForestry(Santo)

24.11.2015 JudeTabi RegionalForestOfficerSouth,DepartmentofForestry(Vila)

NationalREDD+ReadinessProgram,Ecosystemandlivelihoodbenefits,ForestInventory

24.11.2015 AnacletPhilip SanmaEnvironmentOfficer,DepartmentEnvironmentalProtectionandConservation,SanmaProvince

Monitoring,ForestManagementPlan,Communityengagement,Biodiversitymonitoring

24.11.2015 DrSeanWeaver EkosNZ,NakauProgram(viaSkypecall)

NakauMethodologyFramework,Carbonbenefits,Accountingmethodology,Baseline,Additionality,Permanence,Leakage,Traceabilityanddouble-counting,Monitoring

24.11.2015 RobbieHenderson

Live&LearnInternational,NakauProgram(viaSkypecall)

NakauMethodologyFramework,PlanVivoRequirements

25.11.2015 SeroIsaiah ForestOfficer,Santo–SanmaProvince

Interpreter

25.11.2015 PeterServet Chief,KholeVillage25.11.2015 JohnVimoli Pastor,KholeVillage

(SharkbaySession)25.11.2015 JerryIavroBoaz LeadingElder,Khole

Village(SharkbaySession)

25.11.2015 KaltapasSam ChiefCouncil,Khole

EcosystemsandLivelihoodbenefits,Biodiversity,ForestConservation

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Village 25.11.2015 ClarenceSer

DanAdministrationOfficer,SerthiacForestProject

25.11.2015 KalsakauSer ChairmanoftheLandManagementCommittee,SerthiacForestProject

25.11.2015 GeorgeKalorip BoardMember,SerthiacForestProject

25.11.2015 SteveSer ChairmanofBoard,SerthiacForestProject

25.11.2015 RositoMoses Member,SerakarClan25.11.2015 TonnyMoses Member,SerakarClan25.11.2015 KatesFred Member,SerakarClan25.11.2015 SamuelDan Member,SerakarClan25.11.2015 OliFred BoardMember,Serthiac

ForestProject25.11.2015 RimanSer FieldOperator,Serthiac

ForestProject25.11.2015 RachelSer MemberofFinance

Committee,SerthiacForestProject

25.11.2015 RosinaMoses MemberofFinanceCommittee,SerthiacForestProject

EcosystemsandLivelihoodbenefits,Socio-economicimpactassessment/monitoringplan,Community-ledplanning,Plantingnativeandnaturalisedspecies,Ecologicalimpacts,Planvivos

CertificationStatement:

VerificationoftheemissionreductionsreportedfortheLoruForestProjectin‘LoruForestProject–MonitoringReport1,2015’fortheperiodduring16January2013to15January2015.Intheopinionof the verifier the GHG emissions reductions for the project in the monitoring report are fairlystated. The GHG emission reductions were calculated correctly on the basis of the approvedmonitoringmethodologyandthemonitoringplancontainedinthePD.TheVerifierisabletocertifythattheemissionreductionsfromtheLoruForestProjectduringtheperiod16January2013to15January2015amountto4884tCO2equivalent.Table1.SummaryofmajorandminorCorrectiveActions[NowallCLOSED]

Theme MajorCARs MinorCARs Observations

ProjectImplementation

MonitoringPlan ProvideReviewofTechnicalSpecificationsModule(C)2.1(AD-DtPF)byTACasperPlanVivoProjectCycle.

Response:ReviewoftheTechnicalSpecificationsModule

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willbecompletedbyTAC(TechnicalAdvisoryCommitteeofPlanVivo).ProgramOperator–theNakauProgramsentaMemo(dated12Aug2015)/47/toPlanVivoandhavehaddiscussionwithPlanVivotoundertakeacombinedvalidationandverificationauditprocessforthefirstverification.AccordingtoPlanVivothiswouldbefine.UnderthePlanVivosystemtheydonotnormallyseparateoutthemethodologyandhavethatauditedseparatelyaheadofvalidationofthePD.InsteadthetechnicalspecificationisnormallyincorporatedintothePDsomewhatlikeamethodologychapter,andbotharevalidatedatthesametime.NormallyalsowithPlanVivoprojectstheyareafforestationprojectssoastartdatethatispriortovalidationisnotgenerallycompatible.ButaREDDprojectiscompatiblewiththistiming.Assessment:TheexplanationprovidedbyPlanVivoisappropriate.AtthetimeofvalidationofLoruForestProject,thefirstvalidationofTechnicalSpecificationTS(c)2.1(AD-DtPF):AvoidedDeforestation–

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DeforestationtoProtectedForestV1.0fortheNakauProgramhasbeencompleted/53/.TheValidationofTheTSconcludedthatTechnicalSpecificationsasdescribedintheTechnicalSpecificationsdocumentationVersion1.0,dated15August2015meetsallrelevantrequirementsofPlanVivoStandard(2013),ISO14064-2,andIPCCguidelinesandaretechnicallysoundforcarbonaccounting.AllCARsandClarificationRequestshavebeenadequatelyaddressed/53/.TheCARisCLOSED.

Recommendation:

DetailsofmonitoringapproachesofEligibleForestArea(EFA)andTotalActivityLeakage(TAL)shouldbefollowedaccordingtoproceduresandinstructionsasperTechnicalSpecificationModule(C)2.1(AD-DtPF)duringperiodicmonitoring.

Response:

TSModule(p16)states:“Theremaybenoleakagethroughactivityshiftingtootherlandsownedormanagedbyprojectparticipantsoutsidetheboundsof

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thecarbonproject.”TSModulep53states:Wheretheprojectproponentcontrolsmultipleparcelsoflandwithinthecountrytheprojectproponentmustdemonstratethatthemanagementplansand/orland-usedesignationsofotherlandstheycontrolhavenotmateriallychangedasaresultoftheplannedproject(designatingnewlandsastimberconcessionsorincreasingharvestratesinlandsalreadymanagedfortimber)becausesuchchangescouldleadtoreductionsincarbonstocksorincreasesinGHGemissions.SomyunderstandingofActivityShiftingLeakageunderthismethodologyisthatitappliestoactivitiesshiftingwithinlandsowned/controlledbytheProjectOwner.BecauseallindigenousforestownedbytheProjectOwneriscontainedwithintheProjectArea,whichinturnisprotectedasaCommunityConservationArea,thennoActivityShiftingcanoccur.Atpresent,thereisforestnotincludedincreditingbutincludedintheCommunityConservationArea.This

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areawasnotincludedincarboncreditingunderthisprojectbecauseweomittedtoundertakeacarbonstockinventorywithinthisarea.Assuchweintendtoprovideanupdatedbaselineatsecondverificationthatwillincludethisarea(ZoneBasdepictedinFigure2.4einthePDPartA–pg.25).Assessment:ProjectCoordinatorhasprovidedappropriateresponsesthatreferstomonitoringapproachesofEligibleForestArea(EFA)andTotalActivityLeakage(TAL)accordingtoproceduresandinstructionsasperTechnicalSpecificationModule(C)2.1(AD-DtPF).Thisexplanationisnowincludedinfirstmonitoringreport.ThisisCLOSED.

Parametersmonitored

Recommendation:Baselineactivityforthisprojectisdeforestation.Thebiodiversitybaselinesurveythereforeneedstobeundertakeninarelevantreferencearea.ProjectCoordinatorandProjectOwnershallconductbaselinebiodiversitysurveyinanappropriatereferenceareaandprojectbiodiversitysurveybeforesecond

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verification.Response:InterviewwithProjectCoordinatorandProjectOwnerrevealsthatbiodiversitysurveywillbeconductedinanappropriatereferencearea.Assessment:Thisisintheopinionoftheverifierthatplannedbiodiversitysurvey(inareferenceareabeforenextverificationandaprojectbiodiversitysurvey)isappropriate.ThisisCLOSED.

Riskmanagementandqualityassurance

Theme 1. ProjectImplementationStatus

EnsuringthattheprojectisimplementedinaccordancewithProjectDescriptionasperPlanVivoStandard(2013)andmeetsrequirementsof1,2,3,and4ofPlanVivoStandard(2013)

A. Requirement

1.1 ProjectisimplementedinaccordancewithProjectDescription

B. Findings

(describe)The Loru Forest Project (with eligible forest area of 165.6 hamade up of 1landparcels)inLuganville,SantoofVanuatuemploysthelegalinstrumentofaCommunityConservationAreatoprotectthetallcoastalrainforestwithintheprojectboundary.CommunityConservationAreanoticewasverifiedviaemailcommunication /10/. The project seeks to manage the area throughimplementation of the Loru Protected Area Management Plan /12/, whichincludestheremovalofcattlefromthearea,toreducetheimpactofinvasiveweedswithinProjectArea.Theprojecthasestablishedatreenurserywiththeclan to generate revenue and promote forest conservation and increasesplantingofproductivetreespecies,whichisverifiedduringon-siteinspectionon24Nov2015.

The project is divided into three management zones. Zone A AvoidedDeforestationwheresecondaryforesttoberehabilitatedthroughtheremovalof cattle and agreement not to clear the area for gardens or copra during

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project period. Zone B Enhanced Forest Regeneration where thicket to beweeded of aggressive herbaceous vines and managed to enhance naturalregeneration. Zone C Agroforestry Non forest land currently infested withinvasivevines.ThreemanagementzonesoftheprojectareinaccordancewithPD/1/andfurtheron-siteinspectionduring24Nov2015.

Loru was surveyed and recognised as owned by the Serakar Clan throughVanuatuDepartmentofLandsin1994.TheChiefofthefamilyatthetimeofthe court’s decision, Chief Caleb Ser, has since passed and as local customdetermines, his five children nowmanage the land. Customary law in thispart of Vanuatu works through a patrilineal system. As such the maledescendantsofChiefCalebSerarethelandownersofLoruArea.

A further boundary marking was undertaken in 2014 with Governmentrepresentatives present to witness agreement between the Serakar andneighbouring landowners to confirm customary land ownership of LoruProjectArea/48/.OwnershipoftheLoruProjectAreabytheSerakarClan isnotdisputed.StatementsweretakenandwitnessedtoagreetotheboundaryoftheLoruProjectAreabeingwithinSerakarclanland/43/.

TheconstitutionofVanuatuplaceslandinthehandsofthecustomaryownersofVanuatu.CustomarylandisthedominantformoflandtenureinVanuatuwith90%beingun-leasedand9%beingleased.LoruProtectedAreahasbeenlegally registered as a nationally recognised community conservation areaunderthesubsection37(3)oftheEPCAct/10/.

The Loru Forest Project generate ecosystem service benefits as the projectfalls under the ‘carbon’ Activity Class and is an Avoided Deforestation,DeforestationtoProtectedForest (AD-DtPF)project.TheLoruForestProjectalso delivers co-benefits including maintaining biodiversity and others/1//2//3//4/.

Live & Learn Environmental Education Society Committee is a Legal Entity/49//9/andwillactasProjectCoordinatorofLoruForestProject/6/.Live&Learn Vanuatu as coordinator of the Loru Forest Project ensured thatindividualswithresourceuserrightsandpeoplelivingorreliantontheprojectsites includingcustomary landownerwereappropriately informedabout theprojectandwereengagedinplanning,maintainingandmonitoringoftheLoruForestProject/8/.

ProgramOperator:theNakauProgram/4/.

Project Coordinator: Live & Learn Environmental Education SocietyCommittee(LegalEntity)/49//9/

ProjectOwner:Ser-Thiac(LandownerBusinessEntity)/18//16//7/

Project’s Sectoral Scope:AFOLU–AvoidedDeforestation –Deforestation to

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ProtectedForest(AD-DtPF)

Projectstartdate:16January2013/8/

Project’screditingperiod:30yearsfrom16January2013to15January2044

Periodverifiedinthisverification:16Janury2013to15January2015

Adopted methodoology: the Loru Forest Project has adopted two NakauProgrammethologyelements

• NakauMethodologyFramework:GeneralMethodologyfortheNakauProgram – An Indigenous Forest Conservation Program ThroughPaymentsforEcosystemServices(D2.1v1.0,20140428)/4/

• Technical SpecificationsModule: (C)AD-DtPF:AvoidedDeforestation– Deforestation to Protected Forest V.10 for the Nakau Program(D2.2.1V1.0,20150815)/3/

C. Conformance

Yes

No

N/A

D. CorrectiveActions(describe)

Theme 2. Monitoringplanandmonitoringmethodology

EnsuringthattheprojectmeetsrequirementsofmonitoringmethodologyinaccordancewithProjectDescriptionasperPlanVivoStandard(2013)andmeetsrequirementof5,6and7ofPlanVivoStandard(2013)

A. Requirement 2.1 Complianceofmonitoringplanwithmonitoringmethodology

MonitoringplancontainedintheProjectDescriptionandinTechnicalSpecificationisinaccordancewithapprovedmethodologyasadoptedbytheproject

B. Findings(describe)

ThisprojectappliestwoNakauProgrammemethodologyelementsasdemonstratedinthePD/1/:1.NakauMethodologyFrameworkD2.1v1.120150513/4/2. Technical SpecificationsModule (C) 2.1 (AD-DtPF): D2.2.1 v1.0, 20150815/3/

The Nakau Methodology Framework has been validated to the Plan VivoStandardon21April2015/44/

The Technical SpecificationsModule completed first independent validation

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tothePlanVivoStandardduringcurrentverification(5Dec2015).

Review of the Technical Specifications Module will be completed by TAC(TechnicalAdvisoryCommitteeofPlanVivo).ProgramOperator–theNakauProgramsentaMemo (dated12Aug2015) /47/ toPlanVivoandhavehaddiscussion with Matteo and Chris at Plan Vivo to undertake a combinedvalidationandverificationauditprocessforthefirstverification.AccordingtoPlanVivothiswouldbefine.UnderthePlanVivosystemtheydonotnormallyseparate out the methodology and have that audited separately ahead ofvalidation of the PD. Instead the technical specification is normallyincorporatedintothePDsomewhatlikeamethodologychapter,andbotharevalidated at the same time. Normally also with Plan Vivo projects they areafforestationprojectssoastartdatethatispriortovalidationisnotgenerallycompatible.ButaREDDprojectiscompatiblewiththistiming.

PD Part A outlines how the project will be monitored. PD Part B specifiesdetailedmonitoringplanandmonitoringapproaches(monitoringduringfirstprojectmonitoringandsubsequentperiodicmonitoring).Themonitoringplanandmonitoringapproachesappeartobeappropriateandasrequiredbytheadoptedmethodologyelements.

ThisisthefirstProjectMonitoringforLoruForestProject.AsimplifiedProjectMonitoring has been adopted in accordance with section 8.1.5 of theTechnicalSpecificationsModule(C)2.1(AD-DtPF).

Accordingtotherequirementof8.1ofTechnicalSpecificationsModule(C)2.1(AD-DtPF) /3/ the simplified Project Monitoring Report has adoptedappropriatecomponentsofthelatestVCSmonitoringReportTemplate/45/.

This monitoring report covers period from 16 January 2013 to 15 January2015/41/.

C. Conformance

Yes

No

N/A


ProvideReviewofTechnicalSpecificationsModule(C)2.1(AD-DtPF)byTACasperPlanVivoProjectCycle.

Response:Review of the Technical Specifications Module will be completed by TAC(TechnicalAdvisoryCommitteeofPlanVivo).ProgramOperator–theNakauProgramsentaMemo (dated12Aug2015) /47/ toPlanVivoandhavehaddiscussionwithPlanVivotoundertakeacombinedvalidationandverificationaudit process for the first verification. According to PlanVivo thiswould befine. Under the Plan Vivo system they do not normally separate out themethodologyandhavethatauditedseparatelyaheadofvalidationofthePD.Instead the technical specification is normally incorporated into the PDsomewhat like amethodology chapter, and both are validated at the sametime.NormallyalsowithPlanVivoprojectstheyareafforestationprojectssoastartdatethatispriortovalidationisnotgenerallycompatible.ButaREDD

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projectiscompatiblewiththistiming.Assessment:TheexplanationprovidedbyPlanVivoisappropriate.AtthetimeofvalidationofLoruForestProject,thefirstvalidationofTechnicalSpecificationTS(c)2.1(AD-DtPF):AvoidedDeforestation–DeforestationtoProtectedForestV1.0forthe Nakau Program has been completed /53/. The Validation of The TSconcluded that Technical Specifications as described in the TechnicalSpecifications documentation Version 1.0, dated 15 August 2015meets allrelevant requirements of Plan Vivo Standard (2013), ISO 14064-2, and IPCCguidelines and are technically sound for carbon accounting. All CARs andClarificationRequestshavebeenadequatelyaddressed/53/.TheCARisCLOSED.

A. Requirement 2.2 Complianceofmonitoringwiththemonitoringplan

MonitoringhasbeencarriedoutinaccordancewiththemonitoringplanintheProjectDescription


LoruForestProjectMonitoringPlanhasbeendevelopedanddemonstratedinPDPartB /2/.Roles and responsibilities in regard toprojectmonitoringhasbeen demonstrated in PD Part (B) Table 8.1.6 /2/ which is consistent withmonitoringguidelineasperTechnicalSpecificationModule(C)2.1(AD-DtPF)/3/. Responsibility and required resources availability were cross-checkedwithProjectCoordinator,ProjectOwnerandProgramOperatorduringon-siteinspectionandappearedappropriateasrequiredbyadoptedmethodologies.

ThisisthefirstProjectMonitoringforLoruForestProject.AsimplifiedProjectMonitoring has been adopted in accordance with section 8.1.5 of theTechnicalSpecificationsModule(C)2.1(AD-DtPF).

AccordingtotheNakauMethodologyFramework(validatedtothePlanVivoStandard(2013)),allprojectsintheNakauProgramarerequiredtoprepareaProjectMonitoringPlanaspartoftheProjectDescriptioninaccordancewithrequirements of 5.4 of Nakau Methodology Framework and elementsrequired in the relevant Technical Specifications Module/s applied. Theadoptedmonitoring plan for Loru Forest Project is detailed in Part B of PD(section8.1.5)andTechnicalSpecificationModule (C)2.1 (AD-DtPF) (section8.1.5).

According toTable8.1.1of theadoptedTechnical SpecificationsModule (C)2.1(AD-DtPF),followingparameterswillbemonitored:

Notation Parameter Uni Equation Origin MonitoredEFA Eligible

ForestAreaha - PD Monitored

TAL TotalActivityLeakage

tCO2e/yr 5.2.1 DerivedfromActivityShiftingLeakageAnalysis

Monitored

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Analysis

Director’sCertificatedated12Dec2015/46/confirmsthattheprojectstartedon16January2013andimplementedaccordingtotherequirementsofNakauMethodology Framework and Technical Specification Module (C) 2.1 (AD-DtPF)asper requirementof8.1.5ofTechnicalSpecificationsModule (C)2.1(AD-DtPF).

A simplified Standard Operating Procedure (SOP) has been developed inregard to ProjectMonitoring during first reporting period (from 16 January2013to15January2015)asper8.1.6ofTechnicalSpecificationsModule(C)2.1(AD-DtPF)duringfirstmonitoringperiod.

As per simplified Standard Operating Procedure (SOP), parameters arereported as per adoptedmonitoring procedures. Assessments ofmonitoredparametersaregiveninthefollowingtable.

Carbon Parameter Adoptedmonitoring

procedureforFirstMonitoringReport

Assessment/Observation

EligibleForestArea

InspectionsundertakenduringPDdevelopmentandtheforestinventorysurvey(2015);mostrecentlyavailableaerialimageryprovidedforPD

ThisapproachisconsistentwithprocedureasdetailedinValidatedTechnicalSpecification/3/andPDPartB/2/EligibleForestArea(EFA)equalsto165.6hahasbeenverifiedfromtheprojectQGISfiles/50/

ActivityShiftingLeakage

InspectionsundertakenduringPDdevelopmentandtheforestinventorysurvey.ActivityShiftingLeakagenotpossibleduetoallforestlandownedbylandownersiscontainedwithintheProjectAreaandwouldamounttoareversalifreduced

ThisapproachisverifiedfromvalidatedTechnicalSpecification/3/,ForestInventory/15/.ActivityShiftingLeakageunderthismethodologyrefersactivitiesshiftingwithinlandsowned/controlledbytheProjectOwner.BecauseallindigenousforestownedbytheProjectOwneriscontainedwithintheProjectArea,whichinturnisprotectedasaCommunityConservationArea,thennoActivityShiftingcanoccur.Atpresent,thereissomeforestthatisnotincludedincreditingbutincludedintheCommunityConservationArea/10/.ThisareawasnotincludedincarboncreditingunderthisprojectatfirstverificationbecausetheProjectCoordinatoromittedtoundertakeacarbonstockinventorywithinthisareaduringprojectdevelopment.AssuchtheProjectCoordinatorintendstoprovideanupdatedbaselineatsecondverificationthatwillincludethisarea.Thisisverifiedbyinterviewing

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ProjectCoordinatoromittedtoundertakeacarbonstockinventorywithinthisareaduringprojectdevelopment.AssuchtheProjectCoordinatorintendstoprovideanupdatedbaselineatsecondverificationthatwillincludethisarea.ThisisverifiedbyinterviewingProjectCoordinatorandProgramOperator.

Community Parameters Adoptedmonitoring



Food,consumption,agriculture

CommunityImpactMonitoringbaselinesurveyundertakenin2015

ThisapproachisconsistentwithLoruLivelihoodImpactMonitoringGuideandMethodologyforSocioeconomicBaseline/42/.Surveydocumentswereverifiedduringon-siteinspectionon25Nov2015atProjectCoordinatorLocation(Live&LearnVanuatu).BaselinesurveyresultsaspresentedinPDPartA/1/wasverifiedduringon-siteinspectionattheprojectsitebyinterviewingcommunityrepresentatives.

Wateraccessibility



Householdincome



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siteinspectionattheprojectsitebyinterviewingcommunityrepresentatives.

Participation CommunityImpactMonitoringbaselinesurveyundertakenin2015


BiodiversityParameter Adoptedmonitoring



Presenceofsignificantspecies

FirstBiodiversityProjectSurveyundertakenconcurrentlywithForestInventorySurveyin2015.ForestBiodiversityBaselineSurveytobeundertakenafterfirstverification.

ThisapproachisconsistentwithprocedureasdetailedinValidatedTechnicalSpecification/3/andPDPartB/2/.ForestInventorywascompletedin2015/15/.Biodiversityassessmentswerecarriedoutaccordingly/38//40/.

C. Conformance

Yes

No

N/A


Recommendation:

Details of monitoring approaches of Eligible Forest Area (EFA) and TotalActivity Leakage (TAL) should be followed according to procedures andinstructions as per Technical Specification Module (C) 2.1 (AD-DtPF) duringperiodicmonitoring.

Response:

TSModule(p16)states:“Theremaybe no leakage throughactivity shifting to other lands ownedormanagedbyprojectparticipantsoutsidetheboundsofthecarbonproject.”TSModulep53states:Where the project proponent controls multiple parcels of land within the

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countrytheprojectproponentmustdemonstratethatthemanagementplansand/or land-usedesignationsofother lands theycontrolhavenotmateriallychangedasa resultof theplannedproject (designatingnew landsas timberconcessionsor increasingharvestrates in landsalreadymanagedfortimber)becausesuchchangescouldleadtoreductionsincarbonstocksorincreasesinGHGemissions.Somy understanding of Activity Shifting Leakage under thismethodology isthat it applies to activities shifting within lands owned/controlled by theProjectOwner.BecauseallindigenousforestownedbytheProjectOwneriscontainedwithinthe Project Area, which in turn is protected as a Community ConservationArea, then no Activity Shifting can occur. At present, there is forest notincluded increditingbut included in theCommunityConservationArea.Thisarea was not included in carbon crediting under this project because weomitted toundertakea carbon stock inventorywithin this area.As suchweintendtoprovideanupdatedbaselineatsecondverificationthatwillincludethisarea(ZoneBasdepictedinFigure2.4einthePDPartA–pg.25).Assessment:Project Coordinator has provided appropriate responses that refers tomonitoringapproachesofEligibleForestArea(EFA)andTotalActivityLeakage(TAL)accordingtoproceduresand instructionsasperTechnicalSpecificationModule(C)2.1(AD-DtPF).Thisexplanationisnowincludedinfirstmonitoringreport.ThisisCLOSED.

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Theme 3. Quantifyingandmonitoringecosystemservices

Ensuringthattheprojectmeetsrequirements5ofthePlanVivoStandard(2013)

A. Requirement

3.1 QuantificationofGHGemissionreductionsandremovals

Quantificationofbaselineemissions,projectemissionsandleakageB. Findings

(describe)Emission reduction fromLoruForestProject (AD-DtPF)hasbeenconsidered forthemonitoring periodduring 16 January 2013 to 15 January 2015. These havebeencalculatedinaccordancewiththeadoptedNakauMethodologyFrameworkandTechnicalSpecificationModule.Data and information presented in Loru Carbon Budget and Pricing /14/ wereassessedandcross-checkedby reviewingrelevant references, interviewingwithpersonnel and source documents. No significant reporting risks have beenidentifiedfortheinformationanddatareported.Thishasenabledtheverifiertoassesstheaccuracyandcompletenessofreportedmonitoringresultsandverifythecorrectapplicationoftheadoptedmethodology.AnnualBaselineEmissionsAvoided:1726tCO2e.ThefirstMonitoringPeriodis16January2013–15 January2015 (i.e.2 years) (Appendix1, Sheet ‘LoruCarbon’CellE9).BaselineEmissionsforthefirstmonitoringperiodare3452tCO2e(i.e.1726x2).AnnualBaselineRemovals:34tCO2e.BaselineRemovals forthefirstmonitoringperiodare68tCO2e(Appendix1,Sheet‘LoruCarbon’CellE10).AnnualNetBaselineEmissions:1726tCO2e(Appendix1,Sheet‘LoruCarbon’CellE11).

AnnualBuffer(NetBaselineEmissionAvoided):345tCO2e

AnnualNetProjectRemovals:1326tCO2e(Appendix1,Sheet ‘LoruCarbon’CellE15)

AnnualBuffer(NetProjectRemovals):265tCO2e

Therehasbeennoactivityshifting leakage in thismonitoringperiod.Therehasbeen no market leakage in this monitoring period (due to the insignificantvolumeofbaselinetimberharvestinginrelationtothenationaldomestictimbermarket).Leakageforthismonitoringperiodis0tCO2e(Appendix1,Sheet‘LoruCarbon’CellE12).NetCarbonCredits:2442tCO2eduring16January2013to15January2014

NetCarbonCredits:2442tCO2eduring16January2014to15January2015

21

C. Conformance

Yes

No

N/A


A. Requirement

3.2 Quantificationofhabitathectareunits

Quantificationofbaselinehabitathectares,projecthabitathectares,hectareleakage


ThisprojectmarketsHabitatHectareunitsthataremutuallyexclusivetocarbonoffsets. This is for purposes of marketing the rainforest protection project tobuyersnotinterestedincarbonoffsettingbutinterestedinsupportingrainforestprotectionthroughthepurchaseofpaymentforecosystemserviceunits.WhenabuyerpurchasesaHabitatHectareunitfromthisproject,theequivalentvolumeofcarbonoffsetsareretiredintheregistry.InthismannercarbonoffsetsareusedasaregisteredproxyofHabitatHectareunits.OneHabitatHectareunit equalsonehectareof rainforestprotected inside theeligibleforestareaforoneyear.Baseline hectares of rainforest protected inside the eligible forest area: 0ha(Appendix1,Sheet‘LoruHH’CellE4).Leakageforthismonitoringperiodis0haBuffer:20%Coastalscrap:36.6haTheGrossHabitatHectare:(EligibleForestArea165.6ha–CoastalScrapincludedinbaseline18.3ha)147.3haProject Habitat Hectares of rainforest protected inside the eligible forest area:EFA–20%(Appendix1,Sheet‘LoruHH’CellE8)118hayr-1Therehasbeennoactivityshifting leakage in thismonitoringperiod.Therehasbeen no market leakage in this monitoring period (due to the insignificantvolumeofbaselinetimberharvestinginrelationtothenationaldomestictimbermarket).Net Carbon Credits per Habitat Hectares: (Net Carbon Credit Equivalent)/(Net HabitatHectares):20.72tCO2e

C. Conformance

Yes

No

N/A

X

X

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A. Requirement

3.3 QuantificationofCommunityImpacts

Quantificationofbaselinecommunityimpacts,projectcommunityimpactsandnetcommunityimpactsenhancement


DuringthefirstverificationtheLoruForestProjecthasundertakenbaselinecommunityimpactmonitoring/42/.ThisisbecausetheLoruForestProjecthasonlycompletedsocio-economic baseline survey of the community and that there is no contrasting data toenable estimating project’s impacts on community. This is verified by interviewingcommunities.A community impactmeasurement frameworkwasdevelopedbyProjectCoordinator in consultation with Project Owner. A total 39 interviews was conductedsung methodology as elaborated in Loru Livelihood ImpactMonitoring Guide andMethodologyforSocioeconomicBaseline/42/.BaselinedataaspresentedinPDPart A was cross-checked with interview response form (stored in ProjectCoordinator’s Office) and interviewing with communities and found to beconsistent.

Thefirstoccasionwhereprojectcommunity impactscanbemeasuredandreportedformonitoring will be at the second verification event. Net community impactenhancementswillbecomeavailableforthefirsttimeatthesecondverificationevent.

C. Conformance

Yes

No

N/A


ProjectCoordinatorandProjectOwnercontinuemorningtoingofsocio-economicimpactsasperadoptedmethodlogyelements.

A. Requirement

3.4 QuantificationofBiodiversityImpacts

QuantificationofbaselinebiodiversityimpactsandprojectbiodiversityimpactsB. Findings

(describe)Measuring the impact of Loru Forest Project on biodiversity requires acomparison between a biodiversity baseline survey and a biodiversity projectsurvey.At first verification the Loru Forest Project has only undertaken the first ProjectBiodiversityImpactMonitoringsurvey.The Loru Forest Project has completed the first (project scenario) biodiversity impactmonitoringsurveyrecordingsignificantspeciespresentinsidetheprojectboundary.During current verification, there is no information in regard to biodiversityimpactintheMonitoringReport.Thisisbecausenobiodiversitybaselinesurveywas conducted. However, during interview Project Coordinator and ProgramOperator have confirmed that they aspire to undertake a baseline survey in areferenceareassupportingbaselinescenariobeforethesecondmonitoringandverification.

X

23

Thisisintheopinionofverifierthattheproposedapproachappearsappropriatetaking note on planned baseline survey (in a reference area before nextverificationandaprojectbiodiversitysurvey).

C. Conformance

Yes

No

N/A


Recommendation:Baselineactivityforthisprojectisdeforestation.Thebiodiversitybaselinesurveytherefore needs to be undertaken in a relevant reference area. ProjectCoordinator andProjectOwner shall conductbaselinebiodiversity survey in anappropriate reference area and project biodiversity survey before secondverification.Response:Interviewwith Project Coordinator and ProjectOwner reveals that biodiversitysurveywillbeconductedinanappropriatereferencearea.Assessment:This is in the opinion of the verifier that planned biodiversity survey (in areference area before next verification and a project biodiversity survey) isappropriate.ThisisCLOSED.

X

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Theme 4. Climateservices,risksmanagementandqualityassurance

Ensuringthattheprojectmeetsrequirements6and7ofthePlanVivoStandard(2013)

A. Requirement 4.1 Calculationofemissionreductions(climateservices)andassessmentofdata

Spreadsheetformulas,conversion,aggregations,consistentuseoffactorsinlinewiththemonitoringplan,transcriptionerrorsbetweendatasets,sourcesofdata


Emission reduction from Loru Forest Project (AD-DtPF) has been consideredforthemonitoringperiodduring16January2013to15January2015.Thesehave been calculated in accordance with the adopted Nakau MethodologyFrameworkandTechnicalSpecificationModule.ThisisthefirstProjectMonitoringforLoruForestProject.AsimplifiedProjectMonitoring has been adopted in accordance with section 8.1.5 of theTechnicalSpecificationsModule(C)2.1(AD-DtPF).

DataandinformationpresentedinLoruCarbonBudgetandPricing/14/wereassessed and cross-checked by reviewing relevant references, interviewingwith personnel and source documents. No significant reporting risks havebeen identified for the informationanddata reported.Thishasenabled theverification team to assess the accuracy and completeness of reportedmonitoring results and verify the correct application of the adoptedmethodology.

AllrelevantformulasandfactorsusedtocalculatethenetanthropogenicGHGemissions and removals in the Baseline Scenario, and to calculate the netanthropogenic GHG emissions and removals in the Project Scenario are inaccordancewithTechnicalSpecification(AD-DfPF)andasdemonstratedinPDPartB.

All the factors used and sources of data are appropriately cited in both PDPartBandLoruCarbonBudgetandPricing/14/.

During current verification, all data transcription was performed byresponsiblemonitoringpersonnelandwascarried-outappropriately.

C. Conformance

Yes

No

N/A


A. Requirement 4.2 Assessmentofbuffer

X

25

Hastheprojecthasallocatedaproportionofclimateservicesinariskbuffer?B. Findings

(describe)TheProjectBufferRating(PBR)isusedtocalculatetheBufferforthebaselinetimeline.

TheProjectBufferRating(PBR)isequalto0.2inthisTechnicalSpecificationsModule. This is in accordance with Technical Specification and adoptedmethodologyelements.

20% buffer is higher thanminimum buffer (10%) as recommended by PlanVivo(2013).

C. Conformance

Yes

No

N/A


A. Requirement 4.3 Quality of evidence to determine emission reductions and climateservices

Thediscussion,findingsandconclusionrelatedtothattheevidenceisoffsufficientquantityandappropriatequality,thereliabilityofevidenceandnatureofevidence


DatapresentedinthemonitoringreportandLoruForestCarbonInventory&Budget are assessed by reviewing in detail project documetation, interviewwithPorjectOwner,ProjectCoordinatorandProgramOperator,observationsofestablishedmonitoringandreportingpracticesduringfieldvisitinspection.This has enabled the verification team to assess the accurancy andcompleteness of the reported monitoring results and verify the correctapplication of adopted methodology elements and Technical Specifications.All necessary documentation is collected, referenced and agreegated and iseasyaccessibleinelectronicformataswellashardcopies.

Monitoring and reporting of data is in accordance with the adoptedmethodologyelementsandTechnicalSpecificationandasdemonstratedinPDPart B. Verifier has been able to confrm that that compelte set of data isavailable for thepurposeof calaculationof emission reductionunits for thecurrentmonitoringperiod.

C. Conformance

Yes

No

N/A


A. Requirement 4.4 Managementsystemandqualityassurance

Thediscussion,findingsandconclusionsinregardtothesuitabilityofthe

X

X

26

managementsystemformonitoringandreporting.B. Findings

(describe)LoruForestProjecthasdevelopedaStandardOperatingProcedure(SOP)forMonitoring Carbon benefits as demonstrated in PD Part B and in theMonitoring Report. The demonstrated SOP is in accordance with adoptedmethodologyelementsandTechnicalSpecification.Against each activity to be monitored (under carbon, community andbiodiversity)relevantfrequency,responsibility,humanresourcesandfinancialresourceshavebeendemonstratedunderSOPasdetailedinthePDPartB.Verifier confirms that the responsibilitiesandauthorities formonitoringandreportingareinaccordancewiththeresponsibilitiesandauthoritiesasstatedinthePDPartB.

ThisisthefirstProjectMonitoringforLoruForestProject.AsimplifiedProjectMonitoring has been adopted in accordance with section 8.1.5 of theTechnical Specifications Module (C) 2.1 (AD-DtPF) as such a simplifiedmonitoringandreportingmethodologyhasbeenadopted.

Loru Forest Project’s monitoring management includes data managementsystems, StandardOperating Procedure (includingmonitoring and reportingtools, templates, appropriate training tomonitoringpersonnel in the forest)and Quality Assurance (accessible of data by nominated personnel andstorage of data in multiple sites). Nakau Program has developed anInformationManagementSystemswhereLoruForestProjectdataarestoredelectronically.Hard copiesofdataare storedatProjectCoordinator’sOfficeand Project Owner’s field office. Implementation of data managementsystems was verified during field visit inspection and interviewing ProgramOperator,ProjectCoordinatorandProjectOwner.

DatapresentedinthemonitoringreportandLoruForestCarbonInventory&Budget as assessed by reviewing in detail project documentation, interviewwithProjectOwner,ProjectCoordinatorandProgramOperator,observationsofestablishedmonitoringandreportingpracticesduringfieldvisitinspection.Thishasenabledtheverifiertoassesstheappropriateimplementationofthedata management systems and completeness of the reported monitoringresults and verify the correct applicationof adoptedmethodology elementsand Technical Specifications. All necessary documentation is collected,referencedandaggregatedandiseasyaccessibleinelectronicformataswellashardcopies.

C. Conformance

Yes

No

N/A


X