VCS Non-Permanence Risk Report Template

NON-PERMANENCE RISK REPORT : VCS Version 3

NON-PERMANENCE RISK REPORT FOR TIST PROGRAM IN KENYA VCS-006

Document Prepared By Clean Air Action Corporation

Contact Information: [email protected]

Project Title The International Small Group and Tree Planting Program, Kenya, VCS-006

Version Version 02

Date of Issue 24-August-2012

Project ID VCS project database ID: Not registered

Monitoring Period 01-January-2004 to 26-June-2012

Prepared By Charlie Williams, Vice President

Contact Clean Air Action Corporation (CAAC) 7134 South Yale Avenue, Suite 310 Tulsa OK, USA 74136 Telephone 918-747-8749 [email protected] Tist.org

v3.0 1 NON-PERMANENCE RISK REPORT : VCS Version 3

1 INTERNAL RISK

Project Management Risk Risk Factor and/or Mitigation Description Risk Factor Rating a) Species planted (where applicable) associated with more than 25% of the stocks on 0 which GHG credits have previously been issued are not native or proven to be adapted to the same or similar agro-ecological zone(s) in which the project is located.

The only species that exceed 25% are eucalyptus spp and Grevillea robusta. Eucalyptus was introduced in Africa before 1885 and in East Africa between 1890 and 1920.1 It has since become a highly recommended and successful species. It's continued planting is supported by the Ministry of Forests and Wildlife, Kenya Forest Service and the Kenya Forestry Research Institute (KEFRI).2

Grevillea was introduced in 19103 and is also a well-established tree in Kenya. For example, in Kirinyaga, Kenya, it is "found in very large numbers on small private farms, about 40 per hectare, on 94 percent of the farms.”4

In addition, the species planted are chosen by the farmers, who gather seeds from trees growing successfully locally, and so are adapted to project agro-ecological zones.

Both species are common in Kenya, were introduced and proven successful well before the establishment of TIST and their selection does not pose a risk to the project.

b) Ongoing enforcement to prevent encroachment by outside actors is required to 0 protect more than 50% of stocks on which GHG credits have previously been issued.

Ongoing enforcement to prevent encroachment by outside actors will not be required to protect stocks. The project areas are on lands owned by the Small Group members that plant the trees. Most of these lands are both their farmland and their residence and are protected by the farmers living there. The ongoing per tree cash incentives provided to project participants minimize need for external management (i.e. project participants oversee project implementation in their own self-interest).

c) Management team does not include individuals with significant experience in all skills 0 necessary to successfully undertake all project activities (i.e., any area of required experience is not covered by at least one individual with at least 5 years experience in the area).

1 World Agroforestry Center, AgroForestryTree Database, accessed 15 June, 2011. http://www.worldagroforestrycentre.org/SEA/Products/AFDbases/AF/asp/SpeciesInfo.asp?SpID=782 2 Exhibit 11. 3 Nancy Karen Karanja, Kaleb Adamba Mwendwa Felipe Zapata, "Growth response of Grevillea robusta A. Cunn. seedlings to phosphorus fertilization in acid soils from Kenya, Biotechnol. Agron. Soc. Environ. 1999 3 (1), 57–64. Accessed 15 June, 2011 at http://www.bib.fsagx.ac.be/base/text/v3n1/57.pdf 4 Tyndall, Bradley P, "The anatomy of innovation adoption: the case of successful agroforestry in East Africa," Colorado State University, USA, 1996. Accessed 15 June, 2011 at http://www.researchkenya.org/?ID=3202&search=Anatomy v3.0 2 NON-PERMANENCE RISK REPORT : VCS Version 3

The management team has extensive experience that exceeds 5 years in all areas. CAAC created TIST in 1999 and began tree planting in 2000. The management team has not changed in that time.

Since the inception of TIST, the CAAC management team has proven its skills by growing the project to over 65,000 farmer members, planting over 11 million trees world wide, providing the funding necessary to conduct operations for over 11 years without the sale of verified credits, expanding TIST to four countries, validating one TIST project in India under CDM, validating and verifying five projects in Kenya and four projects in Uganda under VCS, becoming the first project worldwide to be dual certified for VCA and CCB, and deploying an award winning monitoring system. See Exhibits 05 and 06.

Lack of management experience and skills does not pose a risk to the project.

d) Management team does not maintain a presence in the country or is located more 0 than a day of travel from the project site, considering all parcels or polygons in the project area.

The project management team maintains a presence in the country. There is a full time professional staff in Meru and Nanyuki, and no site is more than a day of travel from staff. They coordinate the activities in the field including training, quantification, auditing and special programs such as conservation farming and improved cooking stoves. They are in regular contact with project managers in the US, quantifiers and farmers. They provide ongoing management support to foster increasing self- reliance on the part of project participants.

In addition, TIST deploys a team of about 50 Quantifiers that visit each site periodically and has regular contact with the members. Also, each project area is managed by the Small Groups that own the trees

e) Mitigation: Management team includes individuals with significant experience in -2 AFOLU project design and implementation, carbon accounting and reporting (e.g., individuals who have successfully managed projects through validation, verification and issuance of GHG credits) under the VCS Program or other approved GHG programs.

Management team includes individuals with significant experience in AFOLU project design and implementation, carbon accounting and reporting (e.g., individuals who have successfully managed projects through validation, verification and issuance of GHG credits) under the VCS Program and other approved GHG programs. See section c), above.

f) Mitigation: Adaptive management plan in place. 0

Not applicable

Total Project Management (PM) [as applicable, (a + b + c + d + e + f)] -2 If a=0, b=0, c=0, d=0, e=-2 and f=0; then PM=-2 Total may be less than zero.

Financial Viability

Risk Risk Factor and/or Mitigation Description Risk Factor Rating a) Project cash flow breakeven point is greater than 10 years from the current risk NA assessment.

Not applicable

b) Project cash flow breakeven point is between 7 and up to 10 years from the current NA risk assessment.

Not applicable

c) Project cash flow breakeven point between 4 and up to 7 years from the current risk NA assessment.

Not applicable

d) Project cash flow breakeven point is less than 4 years from the current risk 0 assessment.

The project has been breakeven based on external funding and commitments. See Exhibit 7.

e) Project has secured less than 15% of funding needed to cover the total cash out NA before the project reaches breakeven.

Not applicable

f) Project has secured 15% to less than 40% of funding needed to cover the total cash NA out required before the project reaches breakeven.

Not applicable

g) Project has secured 40% to less than 80% of funding needed to cover the total cash NA out required before the project reaches breakeven.

Not applicable

h) Project has secured 80% or more of funding needed to cover the total cash out 0 before the project reaches breakeven.

The project had all the funds secured to cover the total cash needs to reach breakeven. See Exhibit 7.

i) Mitigation: Project has available as callable financial resources at least 50% of total -2 cash out before project reaches breakeven.

Since the project is breakeven and has ongoing funding available, this mitigation applies. See Exhibit 7.

Total Financial Viability (FV) [as applicable, ((a, b, c or d) + (e, f, g or h) + i)] 0 If d=0, h=-2 and i=-2; then FV=-2 Total may not be less than zero.

Opportunity Cost

Risk Risk Factor and/or Mitigation Description Risk Factor Rating a) NPV from the most profitable alternative land use activity is expected to be at least NA 100% more than that associated with project activities; or where baseline activities are subsistence-driven, net positive community impacts are not demonstrated.

Not applicable

b) NPV from the most profitable alternative land use activity is expected to be between NA 50% and up to100% more than from project activities.

Not applicable

c) NPV from the most profitable alternative land use activity is expected to be between NA 20% and up to 50% more than from project activities.

Not applicable

d) NPV from the most profitable alternative land use activity is expected to be between 0 20% more than and up to 20% less than from project activities; or where baseline activities are subsistence-driven, net positive community impacts are demonstrated.

In accordance with instruction 2.2.3.2 of the AFOLU Non-Permanence Risk Tool, "where the majority of baseline activities over the length of the project crediting period are subsistence-driven, an NPV analysis is not required, but an assessment of the net impacts of the project on the social and economic well-being of the communities who derive livelihoods from the project area (see Section 2.3.2) shall be undertaken. Based on this assessment, the project shall be assigned an opportunity cost score as set out in" this table.

The majority of the baseline activity in the project areas is subsistence farming.5 Assessment of the net impacts of the project on social and economic well being of the communities was conducted as part of a third party environmental assessment. It found the project benefited the social and economic well being of the communities, which derive livelihoods from the project areas (see Exhibit 12). In addition, a subset of TIST represented by four previous VCS PDs were verified under the Climate, Community and Biodiversity standard, further acknowledging the social and economic benefits of TIST (see Exhibit 13).

e) NPV from project activities is expected to be between 20% and up to 50% more NA profitable than the most profitable alternative land use activity.

5 Background Note: Kenya, US Department of State, People section. Accessed 21 June 2011 at http://www.state.gov/r/pa/ei/bgn/2962.htm v3.0 5 NON-PERMANENCE RISK REPORT : VCS Version 3

Not applicable

f) NPV from project activities is expected to be at least 50% more profitable than the NA most profitable alternative land use activity.

Not applicable

g) Mitigation: Project proponent is a non-profit organization. 0

The Institute for Environmental Innovation, the project proponent's co-sponsor in charge of sustainable development activity and the source of current funding, is a non-profit organization.

h) Mitigation: Project is protected by legally binding commitment (see Section 2.2.4) to -2 continue management practices that protect the credited carbon stocks over the length of the project crediting period.

Project has contracts with each Small Group that extend beyond the length of the project crediting period. See Exhibits 02 and 03.

i) Mitigation: Project is protected by legally binding commitment (see Section 2.2.4) to NA continue management practices that protect the credited carbon stocks over at least 100 years.

Not applicable

Total Opportunity Cost (OC) [as applicable, (a, b, c, d, e or f) + (g or h)] 0 If d=0 and either g=-2 or h=-2; then Total Opportunity Cost = -2 Total may not be less than 0.

Project Longevity

Risk Risk Factor and/or Mitigation Description Risk Factor Rating a) Without legal agreement or requirement to continue the management practice. NA

Not applicable

b) With legal agreement or requirement to continue the management practice. 0

In the GhG contract with CAAC, project participants have formally committed for 60 years not to cut down the trees, except when implementing best practices (to improve growth) for agro-forestry developed by TIST. No commercial harvest or clear cutting will occur. Fuel wood will only be gathered as dead wood or debris resulting from pruning and thinning. Thinning is allowed (i.e. it is not considered "harvest" in the context of the VCS Non-permanence tool) and is an acceptable forest practice used to improve the growth and health of surviving trees. While thinning may cause a dip in carbon stocks at a specific PA, the numerous project areas, different planting schedule and different species means that there will not be a dip in overall carbon stocks. With a 60 year longevity, the risk is (30-(60/2))=0

Total Project Longevity (PL) 0 v3.0 6 NON-PERMANENCE RISK REPORT : VCS Version 3

May not be less than zero

Internal Risk Total Internal Risk (PM + FV + OC + PL) If PM=-2, FV =0, OC=0, and PL=0; then Internal Risk=-2 0 Total may not be less than zero.

2 EXTERNAL RISKS

Land Ownership and Resource Access/Use Rights Risk Risk Factor and/or Mitigation Description Risk Factor Rating a) Ownership and resource access/use rights are held by same entity(s). 0

Control of project lands by project participants is clear and undisputed, either through a registered deed or by customary tenure. Kenyan law is in transition from customary tenure to registered deed, but the process will take decades. Customary tenure is an accepted form of ownership, where ownership was first established through occupancy recognized by neighbors and tribes. Since population growth and government ownership has meant there is little, if any, land available for new settlement, "title" to lands controlled by customary tenure are passed by sale and inheritance. Ownership of lands is attested by each individual project participant in their Small Group contract.

Title risk is also lowered by the fact that there are numerous individual project areas. If, for some reason, title were to fail in one project area, it would have negligible impact on the overall carbon stocks.

b) Ownership and resource access/use rights are held by different entity(s) (e.g., land is NA government owned and the project proponent holds a lease or concession).

Not applicable

c) In more than 5% of the project area, there exist disputes over land tenure or 0 ownership.

There are no known disputes.

d) There exist disputes over access/use rights (or overlapping rights). 0

There are no known disputes.

e) Mitigation: Project area is protected by legally binding commitment (e.g., a -2 conservation easement or protected area) to continue management practices that protect carbon stocks over the length of the project crediting period.

Each area is subject to a Small Group GhG contract that protects that carbon stocks over the length of the crediting period. See Exhibits 02 and 03. v3.0 7 NON-PERMANENCE RISK REPORT : VCS Version 3

f) Mitigation: Where disputes over land tenure, ownership or access/use rights exist, NA documented evidence is provided that projects have implemented activities to resolve the disputes or clarify overlapping claims.

Not applicable

Total Land Tenure (LT) [as applicable, ((a or b) + c + d + e+ f)] 0 If a=0, c=0, d=0, e=-2; then LT=-2. Total may not be less than zero.

Community Engagement Risk Risk Factor and/or Mitigation Description Risk Factor Rating a) Less than 50 percent of households living within the project area, who are reliant on 0 the project area, have been consulted.

Because of the nature of the project (i.e. the Small Groups are planting on their own land), 100% of the households within the project area, who are reliant on the project area, have been consulted.

b) Less than 20 percent of households living within 20 km of the project boundary 0 outside the project area, and who are reliant on the project area, have been consulted.

Because of the nature of the project, the only households that are reliant on a specific project area are the same ones that join TIST and plant the trees. Therefore, 100% of the households in this category have been consulted.

c) Mitigation: The project generates net positive impacts on the social and economic -5 well being of the local communities who derive livelihoods from the project area.

This is a true statement as supported by a third party environmental assessment and by verification of a similar subset of the TIST Kenya program under the CCB standard. See Exhibits 12 and 13.

Total Community Engagement (CE) [where applicable, (a+b+c)] -5 If a=0, b=0 and c=-5; then CE=-5. Total may be less than zero.

Political Risk

Risk Risk Factor and/or Mitigation Description Risk Factor Rating a) Governance score of less than -0.79. NA

Not applicable

b) Governance score of -0.79 to less than -0.32. 4

Average score of all six indicators for the five most recent years (2005-2009) is -0.70. See Exhibit 14.

c) Governance score of -0.32 to less than 0.19. NA

Not applicable

d) Governance score of 0.19 to less than 0.82. NA

Not applicable

e) Governance score of 0.82 or higher. NA

Not applicable

f) Mitigation: Country is implementing REDD+ Readiness or other activities, as set out -2 in this Section 2.3.3.

Kenya is receiving funds from Forest Carbon Partnership for REDD Readiness.6

Total Political (PC) [as applicable ((a, b, c, d or e) + f)] 2 If b=4 and f=0; then PC=4. Total may not be less than zero.

External Risk Total External Risk (LT + CE + PC) If LT=0, CE=-5, and PC=2; then External Risk =-3 0 Total may not be less than zero.

3 NATURAL RISKS

Natural Risk: Fire Significance The project is comprised of thousands of dispersed and discrete project areas spread out over thousands of square kilometers. The average project area represents 0.01% of the total carbon stocks. While there is always a possibility that one of the projects areas could be lost to fire, the impact would be de minimis. The fire risk significance is rated as "insignificant (less than 5% loss of carbon stocks)."

Likelihood The likelihood of a fire is also minimal. First is the fact that the project areas are dispersed and scattered over thousands of square kilometers. As small self- managed project areas located around homes and on farms, an individual area is

6 REDD Readiness Progress Fact Sheet, Kenya, March 2, 2011. Accessed 21 June, 2011 at http://www.forestcarbonpartnership.org/fcp/sites/forestcarbonpartnership.org/files/Documents/PDF/Mar20 11/Kenya%20Progress%20Sheet_Feb%202011.pdf v3.0 9 NON-PERMANENCE RISK REPORT : VCS Version 3

less likely to be affected by fire than isolated and remote forests. The presence of the landowner means that the fires will be noticed early and have a higher likelihood of being put out before they burn too much of a project area. Many of the project areas are also active farm plots and lack the fuel density to be a fire hazard.

Because of the number of plots and their dispersed nature, the level of likelihood is difficult to quantify. Since the baseline data goes back to 1990 and none indicate any issues relating to fire in the project areas, we are conservatively using a likelihood category of "every 10 to less than 25 years."

Score (LS) 1 Mitigation The risk of fire is greatly mitigated by the project design:  There are thousands of discrete, small and isolated project areas.  The project areas are widely dispersed over thousands of square kilometers.  The project areas are dispersed in different ecosystems.  Many of the project areas are bordered by roads which serve as fire breaks.  Many of the farmers live in the project areas and will be able to react early in any fire situation.  Most of the project areas are also used for farming so the overall stem density is often relatively low.  Members are allowed to collect deadwood, prune and thin, reducing fuel loads and lifting the canopy away from the ground.  TIST GhG contracts require all trees will continue to be monitored and replanted for 20 years in the case of any mortality.

Natural Risk: Pest and Disease Outbreaks Significance The presence of an especially aggressive pest or disease could cause tree mortality that could affect some carbon loss. There are three species where a total loss would exceed 5% - eucalyptus, cypress and grevillea.

Eucalyptus: FAO lists several pests that can affect the eucalyptus spp and can be present in Kenya.7 The World Agroforestry Center identifies certain pests which have affected eucalyptus in various countries around the world but lists none for Kenya.8 In 2003, KEFRI reported an exotic pest, Blue Gum Chalcid, had badly damaged young trees and nursery seedlings in parts of Vihiga, Busia and Kisumu districts. Apparently the pest was eradicated, because there have been no further reports of its activity.

Cupressus lusitanica: FAO lists several pests that can affect Cupressus spp and can be present in Kenya.9 It states: In Kenya, the giant cypress aphid is considered to be one of the most damaging introduced insects, where it has caused extensive damage to planted cypress forests. A secondary problem caused by aphid feeding is the

7 FAO, Overview of Forest Pests, Forest Resources Development Service, Working Paper FBS/20E, 2007. Accessed 17 June 2011 at http://www.fao.org/docrep/012/al009e/al009e00.pdf. 8 World Agroforestry Center, AgroForestryTree Database, accessed 15 June, 2011 at http://www.worldagroforestrycentre.org/sea/Products/AFDbases/af/asp/SpeciesInfo.asp?SpID=631 9 FAO v3.0 10 NON-PERMANENCE RISK REPORT : VCS Version 3

copious quantities of honeydew, which encourages the growth of sooty mould. A successful biological control programme, by the introduction of Pauesia juniperorum, in Kenya and Malawi, has significantly reduced the impact and spread of this pest. FAO also reports a mold that devastated a different species of Cupressus in Kenya. It further reports a fungus that was especially damaging to a Pinus species that resulted in a "heavier dependence" on Cupressus lusitanica. Eastern Arc reports an aphid that has affected about 5% of the plantation stocks with levels ranging from slight to severe.10

Grevillea robusta: The FAO report does not identify any pests or disease for grevillea. The World Agroforestry Center identifies several pests that can affect the species but does not identify any specific to Kenya.

While the above species represent more than 5% of the trees, none of the cited references suggest a widespread blight that would completely wipe out all of any one of them. Because of the thousands of separate and widespread project areas, loss above 5% of the total carbon is inconceivable and significance is ranked as "insignificant (less than 5% loss of carbon stocks)."

Likelihood Since the research from above indicates that pest and disease have been documented within the last ten years, the likelihood of any carbon loss is in the "less than every 10 years" category.

Score (LS) 2 Mitigation The risk of pest and disease outbreaks is greatly mitigated by the project design:  There are thousands of discrete, small and isolated project areas.  The project areas are widely dispersed over thousands of square kilometers.  The project areas are dispersed in different ecosystems,  Many of the project areas are bordered by roads inhibiting the spread of pest and disease.  Many of the farmers live on the land where they have planted trees and can react early if a pest or disease problem occurs.  Most project areas are also used for farming, so the overall stem density is often relatively low, further inhibiting spread of pest and disease.  Farmers receive training in natural pest control.  TIST has a training network and, should a pest or disease outbreak occur, the information about outbreak and control options can be readily disseminated.  The farmers have access to local foresters from the District.  TIST farmers plant over 100 different species and many groves have multiple species including those not mentioned under "significance."  TIST GhG contracts require all trees will continue to be monitored and replanted for 20 years in the case of any mortality.

Natural Risk: Extreme Weather Significance Cyclones, hurricanes and tornadoes are not relevant to TIST Kenya. Drought is

10 J. G. Mwangi, Integrated Pest Management Model for Kenya, Eastern Arc Mountains Information Source, accessed 17 June 2011 at http://www.easternarc.org/html/ipmModlK.html. v3.0 11 NON-PERMANENCE RISK REPORT : VCS Version 3

the extreme weather that will have the most impact.

Droughts tend to exert the greatest impacts during the early stages of tree establishment. Since TIST does not count trees younger than six months and considers one year old trees as having zero biomass, loss of these vulnerable trees will have no impact on carbon stocks. Based on five previous TIST VCS projects (VCS-001 -005), the 2-year-old trees represent less than 5% of the carbon stocks. Therefore, the risk of loss of these younger trees has minimal impact on TIST carbon stocks.

Drought can also affect larger trees. However, in spite of the droughts discussed under likelihood, TIST tree counts continue to rise and there is no indication that there has been any carbon loss. However, some loss probably takes place so to be conservative a significance rank of "insignificant (less than 5% loss of carbon stocks)." Likelihood Kenya has regular droughts so the likelihood is "less than every 10 years" Score (LS) 2 Mitigation The risk of Extreme Weather is greatly mitigated by the project design:  There are thousands of discrete, small and isolated project areas.  The project areas are widely dispersed over thousands of square kilometers.  The project areas are dispersed in different ecosystems,  Many of the farmers live on the land where they have planted trees and can irrigate if necessary.  Most project areas are also used for farming, so the overall stem density is often relatively low, reducing competition for ground water.  TIST has a training network and, should a drought occur, the information about mitigation options can be readily disseminated.  The farmers have access to local foresters from the District.  TIST farmers plant over 100 different species and many groves have multiple species.  TIST GhG contracts require all trees will continue to be monitored and replanted for 20 years in the case of any mortality.

Natural Risk: Geological Risk Significance The project is exposed to little if any geological risks.

There are 24 active and extinct volcanoes in Kenya. The two with the most recent activity are the Barrier (erupted 1921) and Emuruangogolak (erupted 1910).11 Both are located in the Rift Valley, well away from current TIST operations.

The major volcano in the Meru and Nanyuki area is Mt Kenya, which last erupted 2.6 to 3.1 million years ago.12 Mt Elgon is the second largest volcano in Kenya and erupted about two million years ago.13 Although TIST is not present in that area, it, like all of the listed volcanoes, is within the geographic area defined for the grouped projects.

11 Accessed 06 June, 2011 at http://en.wikipedia.org/wiki/List_of_volcanoes_in_Kenya. 12 Accessed 01 December, 2010 at http://www.eoearth.org/article/Mount_Kenya_National_Park_and_National_Forest,_Kenya 13 Accessed 06 June, 2011 at http://www.volcanolive.com/elgon.html v3.0 12 NON-PERMANENCE RISK REPORT : VCS Version 3

There are infrequent earthquakes in Kenya associated with the Rift Valley. There have been no earthquakes in the Mt Kenya area in recent history. PreventionWeb lists Kenya as 113 out of 153 countries for earthquake risk.14

Because of the dispersed nature of TIST, none of these potential geological risks would have a significant impact on the carbon stocks of the project, even if they occurred. Because trees are flexible, the effects of an earthquake on carbon stocks would be minimal.

Because none of these risks have been identified to impact any discrete project area, significance is considered "no loss."

Likelihood The likelihood for geological risks is "once every 100 years or more, or risk is not applicable to the project area." As pointed out above, TIST has no discrete project areas in the vicinity of the only volcano to erupt in the past 100 years. While there have been tremors felt in Kenya in the last 100 years, there have been no earthquakes of a magnitude that would affect the carbon stocks of the project areas.

Score (LS) 0 Mitigation The fact that project is comprised of thousands of dispersed and discrete project areas qualifies as a prevention measure.

Score for each natural risk applicable to the project (Determined by (LS × M) Fire (F): LS=1, mitigation=0.50. 0.5 Pest and Disease Outbreaks (PD): LS=2, mitigation=0.50. 1.0 Extreme Weather (W): LS=2, mitigation=0.50. 1.0 Geological Risk (G). LS=0, mitigation=0.50. 0.0 Other natural risk (ON). NA NA Total Natural Risk (as applicable, F + PD + W + G + ON) 2.5 If F= , PD= , W= , G=0 and ON= ; then Total Natural Risk= .

4 OVERALL NON-PERMANENCE RISK RATING AND BUFFER DETERMINATION

4.1 Overall Risk Rating

Risk Category Rating a) Internal Risk 0 b) External Risk 0 c) Natural Risk 2.5 Overall Risk Rating (a + b + c) 2.5

14 Accessed 06 June, 2011 at http://www.preventionweb.net/english/countries/statistics/risk.php?iso=ken v3.0 13 NON-PERMANENCE RISK REPORT : VCS Version 3

4.2 Calculation of Total VCUs

The AFOLU Non-Permanence Risk Tool requires a minimum risk rating of 10, so the final risk rating for this project is 10%. The calculation of total VCUs is therefore:

Verified Reductions x (100%-10%) = VCUs or 188,649 x 90% = 169,783 Other References

Exhibit 02: TIST KE PD-VCS-Risk Ex02 GhG Contract 050418.doc Exhibit 03: TIST KE PD-VCS-Risk Ex03 GhG Contract 080428.doc Exhibit 05: TIST KE PD-VCS-Risk Ex05 Mgt Resumes 110215.doc Exhibit 06: TIST KE PD-VCS-Risk Ex06 Mgt Experience 110215.doc Exhibit 07: TIST KE PD-VCS-Risk Ex07 Financial Plan.xls Exhibit 12: TIST KE PD-VCS-Risk Ex12 EIA Report NAREDAR 100506.doc Exhibit 13: TIST KE PD-VCS-Risk Ex13 CCB Val-Ver Report by ESI.pdf Exhibit 14: TIST KE PD-VCS-Risk Ex14 Governance Indic.xls

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