Verification Assesment Report for: Madre de Dios Amazon ... · PDF fileCCBA Validation or...

RA-Cert CCBA Validation or Verification Report 17 Mar 09

Validated by:

65 Millet St. Suite 201

Richmond, VT 05477 USA Tel: 802-434-5491 Fax: 802-434-3116 www.RA-Cert.org

Carbon Forestry Validation Audit Managed by:

South America Regional Office Calle Asunción #180 (esq.Libertad), Edificio

Copy Color Dpto 3A Santa Cruz - Bolivia Tel: +591 3 3325042 Fax: +591 3 3327451

Contact Person: Rolyn Medina Email: [email protected]

Report Finalized: October 8, 2014 Audit Dates: May 26-30, 2014 Audit Team: William Arreaga, Lead Auditor

Campbell Moore, Audit team member Miriam Matorela, Social Expert

Type of Verification: Initial CCB Verification Verification code: RA-VER-CCB-020119 Validation issued: December 2, 2009 Report based on Standard(s): CCB Standards 1st Edition, May 2005

Organization Contact: Jose Luis Canchaya (Maderera Río Acre), Xiaodong Ji (Maderera Río Yaverija), Rocco Cheirasco (Greenoxx)

Address: Avenida Siete 229 Rinconada Baja – La Molina. Lima - Perú

Madre de Dios Amazon REDD project

en

Iñapari, Madre de Dios, Peru

Verification Assesment Report for:


Table of Contents 1 INTRODUCTION .......................................................................................................................................................... 3 2 AUDIT CONCLUSIONS .............................................................................................................................................. 3 3 AUDIT PROCESS ...................................................................................................................................................... 12 Appendix A: COMPANY DETAILS .................................................................................................................................. 16 1 CONTACTS ................................................................................................................................................................ 16 2 Rainforest Alliance Website Fact Sheet ................................................................................................................. 16 3 Verification Scope ...................................................................................................................................................... 16 Appendix B: STANDARD CHECKLIST CCB STANDARDS ........................................................................................ 18 1 Evaluation of Project .................................................................................................................................................. 18 2 Evaluation Details ...................................................................................................................................................... 18 3 Standard Checklist ..................................................................................................................................................... 18 Appendix C: STAKEHOLDER LISTS .............................................................................................................................. 48


1 INTRODUCTION The purpose of this report is to document conformance with the requirements of CCBA project design validation standards by Maderera Rio Acre S.A.C. (Maderacre), Maderera Rio Yaverija S.A.C. (Maderyja) and Grennoxx NGO, hereafter referred to as “Company” or “Project proponents”. The report presents the findings of RA-Cert auditors who have evaluated company systems and performance against the applicable standard(s). Section 2 below provides the audit conclusions and any necessary follow-up actions by the company through corrective action requests. This evaluation follows Climate, Community and Biodiversity Project Design Standards, First Edition, May 2005. These were not developed by Rainforest Alliance, but by the Climate, Community and Biodiversity Alliance (CCBA). RA-Cert CCBA evaluation reports are kept confidential in the draft stage. When finalized and successfully approved, the report is posted on Rainforest Alliance’s website and that of the CCBA. The Rainforest Alliance’s certification program, RA-Cert, was founded in 1989 to certify responsible forestry practices and now focuses on providing a variety of certification and auditing services. In 2005, Rainforest Alliance extended our role as a forest assessor/auditor to standards and services that included verification of forest carbon projects. Rainforest Alliance has the following status with the listed climate related standards and systems:

Verified Carbon Standard – we are an approved verifier Climate, Community & Biodiversity Alliance – we are a member and an approved verifier Plan Vivo – we are a verifier CarbonFix/Gold Standard – we are an approved verifier American Carbon Registry – we are an approved verifier

Dispute resolution: If Rainforest Alliance clients encounter organizations or individuals having concerns or comments about Rainforest Alliance / RA-Cert program and our services, these parties are strongly encouraged to contact Rainforest Alliance / RA-Cert Headquarters directly. Formal complaints or concerns should be sent in writing.

2 AUDIT CONCLUSIONS

2.1 Summary of Conformance to CCB Standards

General Section Conformance: G1. Original Conditions at Project Site Yes No Required G3. Project Design & Goals Yes No Required G4. Management Capacity Yes No Required G5. Land Tenure Yes No Required G6. Legal Status Yes No Required G7. Adaptive Management for Sustainability Yes No Optional G8. Knowledge Dissemination Yes No Optional

Climate Section Conformance: CL1. Net Positive Climate Impacts Yes No Required CL2. Offsite Climate Impacts (“Leakage”) Yes No Required CL3. Climate Impact Monitoring Yes No Required CL4. Adapting to Climate Change & Climate Variability Yes No Optional CL5. Carbon Benefits Withheld from Regulatory Markets Yes No Optional

http://www.climate-standards.org/

http://www.planvivo.org/


Community Section Conformance: CM1. Net Positive Community Impacts Yes No Required CM2. Offsite Community Impacts Yes No Required CM3. Community Impact Monitoring Yes No Required CM4. Capacity Building Yes No Optional CM5. Best Practices in Community Involvement Yes No Optional

Biodiversity Section Conformance: B1. Net Positive Biodiversity Impacts Yes No Required B2. Offsite Biodiversity Impacts Yes No Required B3. Biodiversity Impact Monitoring Yes No Required B4. Native Species Use Yes No Optional B5. Water & Soil Resource Enhancement Yes No Optional

CCBA Verification Level Attained: Approved Yes No Gold Yes No

2.2 Auditor Recommendation

Based on Company’s conformance with CCBA requirements, the audit team makes the following recommendation:

Verification approved:

CAR(s) closed

Verification not approved:

Conformance with CAR(s) required

Additional comments:

2.3 Corrective Action Requests

2.3.1 Corrective Action Requests (CARs)

Note: CARs describe required actions or improvements that address non-conformances identified during audits. CARs include defined timelines for completion. CARs issued during validation audit shall be closed prior to issuance of Validation.

CAR 01/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators G1.4 Original Conditions at Project Site

Non-conformance: When the audit team held the consultation meeting with local people and authorities of the Bélgica Native Community, they indicated that during the last six years the population grew and currently 29 families of the Community confirmed their participation in the consultation activities.

However, during project documentation review, it was verified that the demographic data described in several project’s documents up to 2013 (Social Responsibility, Communitarian Relationship Plan, etc), indicate that this Community only has 16 families, thus, limiting the appropriate identification of the project’s beneficiaries, for the development of their activities, such as the Environmentally Friendly Project Program.

Corrective Action Request:

The project proponent shall update the demographic data of the Bélgica Native Community and shall include it into the management, planning and implementation documents, in order to properly identify


the project’s beneficiaries for the implementation of its activities, such as the Environmentally Friendly Project Program.

Timeline for conformance:

Prior to verification

Evidence to close CAR: Auditor review of the planing documentation confirmed that demographic information is included, and according to the database of the Health Center – “Clas Tres Fronteras Iñapari”, it corresponds to a total of 160 people distribuited in 29 families, settled in the three sections the Bélgica Native Community is divided in; which corresponds with the figures described by the local people interviewed.

CAR Status: CLOSED

Follow-up Actions (if any):

None

CAR 02/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators G3.2 Project Design & Goals

Non-conformance: The PDD and the Project Implementation Report (PIR) describes the implementation activities based on the objectives. During this first period, the project has implemented only a fraction of the planned activities, and actual implemented activities were verified by the audit team during the inspections, field visits, consult with stakeholders, and documentation review.

- No records/files were found with specific documentation about the

communication made with local rural producers. During consultation with stakeholders and rural mestizo producers located in the project zone (leakage belt), interviewees indicated that the objectives and activities have not been constantly divulgated; therefore, they do not remember the content of the project and do not know their current situation.

- Identification and selection of proposals for Environmentally friendly

Production projects: for this aspect the audit team reviewed the document denominated: Program – Environmentally friendly projects for Producers located in the REDD Project Surrounding Area (Programa - Proyectos amigables con el Medio Ambiente para Productores del Entorno del Proyecto REDD), which considers: identification and selection of environmentally friendly production initiatives; development of the selected associate members’ capabilities; design of projects selected; support for co-funding the selected projects, support and accompanying of the implementation of selected projects; and finally, the monitoring of the projects. None of these actions have been implemented; according to what is writen in the PIR, though it was planned to be implemented during the first period of the project (May 2014). Currently, the hiring of a consultant has not begun, and therefore, these activites have not been either. Furthermore, the new date proposed for the implementation of the program is not recorded in the PIR.

In addition, the project proponent did not show to the audit team the implementation of other activities included in Table N° 2 of the PIR, corresponding to the year 2009, nor the three talks held during 2010 and the workshop of 2011 to 2013.

Corrective Action Request: The project proponent shall present the evidence of the divulgation of the project to the beneficiaries settled inside the area of the project and with the mestize rural producers located in the project area. In the same way, the proponent shall implement the Program - Environmentally friendly projects for Producers located in the REDD Project Surrounding Area according to what is established in the schedule; and shall present evidence of all the stages of their implementation. The project proponent shall also present evidence of the implementation of the environmental education program (table No. 2


PIR).



Evidence to close CAR: During review of the project documentation the auditors found records/files which demonstrated the workshops of the project presentation (years 2009 and 2011) which included invited stakeholders, local rural producers, and the Bélgica local community. Consultation was made with stakeholders, the Bélgica Native Community and the mestize rural producers located inside the project area (leakage belt). The Bélgica Native Community confirmed their participation in these activities and demonstrated knowledge about the REDD subject.

Besides, the documentation where the production projects are designed was re-developed to include new activities such as the implementation of workshops with the beneficiaries of the project and the implementation of the schedule covering all the stages, from the hiring of the consultant up to the monitoring of the projects.

Evidence of conformance was presented in the contract between the consultant and the proponent, starting in July 2014. The activities scheduled includes the stages to be gradually implemented during one year period (December 2015), considered a positive net impact for the beneficiaries from the activities in the project zone.

Despite of the fact that there is a delay in the implementation of the activities of the productive projects, it is evident that the project activities have been met through the implementation of supplementary activities such as awareness, training, and environmental education. Training has been aimed to a wide range of local actors.

Simultaneously, trough the presentation of the monitoring results of the social and socioeconomic components, the project demostrated that net positive results have been reached during the the verification period (2009-2013). The tool utilized was designed to assign values related to the intensity of the impacts from both components; this time a total of 13 points (6 for the social and 7 for the socioeconomic component) were obtained, and even though the goal of 19 points was not met, the analysis completed demonstrates that gradually, from the date of the beginning of the project, more positive benefits than negative impacts have been registered.

Among the indicators measured for the social components are: access to information, strenghtening of social capital, productive projects social institutional strengthening, research, investment, and basic services’ extension opportunities, social support and assistance, immigration growth, car flow increment, and the greater demand for coordination actions, and supervisión with the institutions; wheras, among the indicators for the socioeconomic component are the following: increase of job offerings, dynamism of the local and regional economy, strengthening of alternative economic activities and greater training opportunities.

Last, the environmental education program has a documented registry of the participants and records of training events held during the period between 2009 to 2013.

CAR Status: CLOSED


CAR 02/12 is considered closed, but OBS 01/14 has been issued.


CAR 03/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators G3.3 Project Design & Goals

Non-conformance: Section C and D of the PDD includes georeferenced maps with the Maderacre and Maderyja Concessions, and the areas adjacent to the interoceanic road and the fire sources reported in 2008. In addition, the technical team submitted, in digital and printed formats, georeferenced maps, with the location of the project’s leakage belt and visualizing the type of forests, amazonic bamboo forests (pacales), soil deforested areas, and the leakage limit. However, the maps reviewed did not include the neighboring concessions, nor the villages with their respective names where the project has implemented activities. Further, it is no clear whether or not the Bélgica Native Community is included in the leakage belt of the project.


The project proponent shall include in its maps: the neighboring concessions, villages with their respective names, and other actors identified within the project zone, in order to present a better image of where the main activities of the project are being implemented. Also, it must define if the Bélgica Native Community is located inside the leakage belt of the project, just as verbally stated by the project proponent.



Evidence to close CAR: It was verfied that the project has included in the PIR a map displaying the neighboring concessions, the interoceanic road, and the Tahuamanu River. Besides, it visually shows the project zone where the project activities are implemented and includes the villages with their respective names, contract numbers of the concessions involved with the project, and the Bélgica Native Community located outside the leakage belt.

CAR Status: CLOSED


None

CAR 04/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators G8.1 Knowledge Dissemination

Non-conformance: The PIR includes a monitoring matrix which documents the activities and the results from the projects. However, it does not document the relevant and applicable lessons, and how they will be documented. The project did not support this requirement with supplementary information in order to guarantee its compliance.


The proponent shall identify and explain how it will document the relevant and applicable lessons learned during the first monitoring period of the project, including practical recommendations in order to facilitate improvements based on the existing knowledge.



Evidence to close CAR: The PIR includes a monitoring matrix which documents the activities and the results from the project. Upon finalizing this first stage of the project, four learned lessons about REDD have been identified which are evident records of the realities in the zone, which are very generally described as: the possibility of performing a REDD project in forests with forest certification generating job and local development; the reinforcement of REDD as a new mechanism in the local populations; prevententing deforestation through the guarding and patrolling of the consession; and the maintenance of deforestation levels to the planned levels withinr the buffer zone of the project.

CAR Status: CLOSED



None

CAR 05/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators CM1.2 Net Positive Community Impacts

Non-conformance:

As for the gender aspect of the project, the actions have been limited to only offering social support to women from the Bélgica Native Community, mainly during holidays. Even though it is true that indigenous female work force has been hired, it has only been to perform domestic activites (cooks), according to interviews with women from the community. In the PIR, it highlights the hiring of a 50% female work force which works at the Maderacre transformation facility, but with higher and technical education, they have middle management positions.

The project claims that greater support to women from the communities will be offered during the implementation of the environmentally friendly projects. However, the project gender component does not clarify if the project beneficiaries are the women from the communities or the female staff working in the enterprise. It does not define if the component only considers the women or if it seeks the inclusión of men. Further, it does not clarify how the activites related to the empowerement of women beneficiaries from the project will be implemented allowing for improvements in: their involvement, expression of ideas, and decision making.


The proponent shall design, develop, and document the guidelines which clearly describe how the gender component of the project will be layed out; which not only limits them (women) to receiving social support or involving them into activities related to domestic roles, but also considers: the definition of the beneficiaries from the project and how the inputs and suggestions from the participants (men and women) are incorporated into the development of future activities.



Evidence to close CAR: It was evident that the planning documentation of: Social Responsibility, Communitarian Relationships and the Community Development Support Program consider the main guidelines of a gender component in order to achieve the appropriate implementation throughout the project. These documents are mainly targeted to the women of the project zone and include their empowerement through the implementation of different gender based workshops in order to better accommodate their concerns, specially in the case of the Bélgica Native Community who are prone to not publicly expressing their concerns. Based on these three planning documents, the training events are implemented where the specialization needs are

pointed out, such as: a) development and specialization of productive

capabilities to improve the development of the crafts made by the women at the Bélgica Native Community, and b) the coordination with the market through a commercial council, targeted to the female population of the Bélgica Native Community, in agreement with the Planete Urgence project (Link:http://www.planete-urgence.org/conge-solidaire/index.php?page=2&resultat=11&p=les-missions-de-conge-solidaire&pays[]=%27PER%27).

The companies also consider the hiring of female staff beneficiaries from the project, according to their specialization level once their empowerement is achieved.

CAR Status: CLOSED


None


CAR 06/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators CM2.3 Offsite Community Impacts

Non-conformance: In order to determine the level of impact from the project, the proponent quantifies the intensity of the positive impacts on the community from the social and socioeconomic components, described in the Table 25 of the PIR. For the social component, a total of 10 positive impacts were identified, with intensity scores of 0, -1, -2 , 2 and 3 points. In the socioeconomic component a total of 4 impacts are identified, with scores of 0, 1, 3, and 3 points. Although the reasons preventing the project from reaching the highest scores are reasonable, in the PIR the quantification methodology for the impacts is not described, nor does it explain the extent of the scores ranging from -1 up to 3, thus limiting the proper understanding of the results obtained in the intensity of the impact.



Evidence to close CAR: The purpose of the methodology is to describe the main social and socioeconomic indicators and to assign them an impact score according to the intensity. To each indicator (five for the social component and three for the socioeconomic), the impact was quantified using + and – according to their intensity. The values considered for the impact quantification are submitted. In order to guarantee the efficiency of the application, three team members of the project participated and each score assigned has a qualitative interpretation described in the PIR.

These details were included into the PIR along with the general interpretation of the results, which overall shows the project has a positive net impact on the project zone.

CAR Status: CLOSED


None

CAR 07/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators CM3.1 Community Impact Monitoring

Non-conformance: Table 19 in the PIR is a summary of the communitarian indicators monitored during 2009-2013, and is related to what is described in the Social Monitoring program Matrixes of the concessions (graphic 64) and the matrix of other indicators of the Social Monitoring program. In both cases the matrixes include: indicators, verification methodology, frequency, responsable area, group of interest, policies followed, and responsabilities for managing the information. This is how the project quantifies the changes in social walfare and economics resulting from the project activities.

However, for transparency sake and to facilitate the interpretation of the results, it is necessary that the target group be indicated, as well as the the frequency and the methodology for data collection and registry.


The project shall detail when, how, and whith who the indicators have been validated, demonstrating the methodology used for quantification. The proponent Shall explain the meaning of the numbers for each period of time, its relevance in the social and economic wellfare, the type of impact, and specify the classification of the indicator.



Evidence to close CAR: It was verified that the validation of the indicators was done in an interactive


workshop in 2006, with the participation of the population, and through consultation with experts. Furthermre in the PIR, the concept and methodology are identified for each indicator, and in general, are estimated starting from the measurement frequency: when the calculation is done per year; the absolute values are added and in the case of relationship data such as percentages, a yearly timeline is considered. According to the results described in the PIR they are classified into effect and process indicators; all which clarify the type of impact and the quantitative results.

CAR Status: CLOSED


None

CAR 08/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators CM4.4 Capacity Building

Non-conformance: The PIR does not describe the procedures and/or activities implemented to increase the communitarian participation described in indicator CM4.4 during this first period of the project allowing for verification of its appropriate implementation.

Also, the project – powered by Maderacre has created an Advisor Committee who meets annualy. This committee enables the transparency needed for the implementation of the activities, brings their opinions and concerns to the dialogue table, and expresses their opinions regarding the social policies, programs and plans of the project. In order to guarantee the participation of the communities, the committee is made up of the following institutions, companies, neighborhoods, and community: Municipality of the the Province of Tahuamanu – Iñapari, neighborhood La Colonia, Iñapari High school, Bélgica Native Community, Stockholders of Maderacre, and social area of Maderacre. Moreover, the company Maderyja has a Technical Committee for Comunitarian Relationships, and inside its programs exists the development of technical capacities for young people, male as well as for female. However, there is not additional information about how the Technical Committee works on building Communitarian Relationships of Maderyja.


The proponent shall clearly describe the procedures and/or activities implemented for increasing the communitarian involvement during the first period of the project to allow for verification of its appropriate implementation. Furthermore, it shall demonstrate the evidence for verifying the creation and functioning of the Technical Committee for the Communitarian Relationships of the Maderyja company.



Evidence to close CAR: The involvement of the community has been achieved through the implementation of the initiatives from the Advisor Committees created by the two concessions participating in the REDD project. Through this initiative the relationship with the community has improved, because the project always prefers the hiring of a local work force and the purchase of supplies form local suppliers. Documented evidence was gathered in which the committees discuss ideas or projects of common benefit to the communities. There exists plans, policies, manuals, meeting minutes, proofs, among others that confirm the participation of a wide range of stakeholders in the advisor committee. Another activity implemented during the first period of the project this is related to increasing the involvement of the community has been the preparation of introduction workshops, consultation and training covering several subjects for the inhabitants in general, parents, students from


school, the Iñapari school, and Technological Institute of Iberia. This is all described in detail in the PIR (Table N°2).

CAR Status: CLOSED


None

CAR 09/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators CM5.2 Best Practices in Community Involvement

Non-conformance: During the monitoring period, the project has not identified and implemented activities for the women from the Bélgica Native Community (for example), with the purpose of generating technical capabilities to fill in forest management job opportunities which require of some level of specialization.


The proponent shall identify and implement activities for the women from the Bélgica Native Community, in order to generate technical capabilities and thus guaranteeing they will receive fair opportunities to cover the work in the forest management areas for which they were trained.



Evidence to close CAR: It was verified that the project takes into consideration the basic guidelines of a gender component in order to achieve its appropriate implementation and are aimed to the women from the project zone and include their empowerment through the implementation of workshops. This is done to collect their concerns since the women in the Bélgica Native Community are not prone to express their concerns out in public. Based on this the implementation of trainings about subjects related to theirspecialization needs are presented, such as: development and specialization of the productive capabilities to improve the design of the crafts produced by the women from the Bélgica Native Community and the coordination with the market through a commercial council, aimed to the female individuals of the Bélgica Native Community, in agreement with the Planete Urgence Project. The companies also consider the hiring of female staff beneficiaries from the project according to their level of specialization once their empowerment has been achieved.

CAR Status: CLOSED


None

2.3.2 Observations

Note: Observations are issued for areas that the auditor sees the potential for improvement in implementing standard requirements or in the quality system; observations may lead to direct non-conformances if not addressed.

OBS 01/14 Reference Standard & Requirement: Climate, Community and Biodiversity Standard (CCB), First Edition, May 2005, Indicators G3.2 Project Design & Goals

Description of findings leading to observation:

The results from the implementation of environmentally friendly productive projects have not been achieved, exactly as defined in the project design. This is specifically regarding the hiring of a consultant registered until July 2014, and consequently activities related to; identification of potential projects and beneficiaries, allocation of resources, and the monitoring of projects have not been implemented either

Observation: The proponent should place special emphasys on the finalization of the initiative indicated in the PD, in accordance with the design, implementation, and monitoring of the environmentally friendly productive projects. This would allow project participants and stakeholders in general to relate the achievements of the


project as an option for the generation of greater positive net impacts at local level.

2.4 Actions Taken by Company Prior to Report Finalization

The proponent addressed all the Non-Conformity Reports (NCRs) by elaborating a series of technical documents and by providing clarifications on key topics to the audit team. The audit team reviewed the exhibits and additional evidence provided, and determined that the proponent had successfully addressed all of the NCRs and that the project was in conformance with these aspects of the CCB standard. All of theNCRs were closed, and the project was found to be in full conformance with the CCB standards.

3 AUDIT PROCESS

3.1 Audit Overview

Note: The table below provides an overview of the audit scope. See standard checklist appendix for specific details on auditor qualifications, staff interviewed, and audit findings per facility audited.

The activities developed to gather information during the current verification against the CCB standard are in the following table:

Location/Facility Date(s) Principal activities /Site Description Auditor(s)

Trip to Lima- Maldonado Port- Iñapari

May 25th, 2014

Transportation of auditors Miriam Matorela, William Arreaga

- Technical office of Maderacre

May 26th, 2014

- Opening meeting

- Introduction of the project, and

- Presentation of physical information of the project.

Miriam Matorela, William

Arreaga

- Municipality of Tahuamanu

Interview with stakeholders

William Arreaga, Miriam

Matorela

- Office of ADECOMP (Ambiente y Desarrollo de las Comunidades del Peru)

Miriam Matorela

- Elementary School “Elena Bertha“

Miriam Matorela

- Association of home owners “Villa Primavera”

Miriam Matorela

- Governor of Tahuamanu - Iñapari

Miriam Matorela

- Health center – Las Tres Fronteras - Iñapari

Miriam Matorela

- Technical office of Maderacre

- Interiew with stakeholders, and

- Documentation review

William Arreaga,

Miriam Matorela

Field visit to the Maderacre concession.

May 27th, 2014

- Interview with responsable of the control booth Maderacre.

- Meeting with workers of the Company Maderacre – Base Camp.

- Visit to the verification points based on the GIS map.

- Verification of boundaries, landmarks, and signs of the Maderacre Concession.


Matorela


- Verification of the project’s implementation sites (degradation agents)

Visit to the Bélgica Native Community (NC)

May 28th, 2014

- Interview with responsable with control booth Maderacre.

- Meeting with the communitarian authorities and people of the Bélgica N.C.

Miriam Matorela, William

Arreaga

Technical office of Maderacre

May 29th, 2014

- Request and reception of the digital information missing.

- Review of physical and digital documentation.

- Interview with environment and social technical team.

- Audit team meeting.

- Closing meeting.


Matorela

Iñapari – Maldonado Port- Lima

May 30th

- Audit team leaves toward the city of Maldonado Port.

- Interview with Stakeholders from the Forest and Wildlife Direction, at the locality of Iberia (in the way to Maldonado port)

- Departure from Maldonado Port to Lima


Matorela

3.2 Description of Audit Process

The verification methodology for the CCB standard first edition was supported on the review of existing project documentation (digitally and printed versions) and in the field visit regarding the implementation of the activities of the “Madre de Dios Amazon REDD Project”. Specifically the verification descision was based on the Implementation Report (PIR) prepared by the project proponent. In addition, in order to assess the current execution of the activities implemeted for the Climate, Commuity and Biodiversity aspects of the project; the RA-Cert audiors held interviews with the managers, technical staff, and mamagement staff of the company. Furthermore, in order to verify the veracity of the activites described in the PIR, information was collected through direct questions at the harvesting plots located in the concession, meetings with field workers settled at the main camp of the current harvesting area, a visit and interview with the responsibles of the control booths, as well as verification of boundaries and landmarks. Conformance was also demonstrated based on interviews and meetings with stakeholders from public institutions - with direct beneficiaries from the project, the Bélgica Native Community; and some representatives of neighboring villages, settled in the leakage belt of the project.

3.3 Documents reviewed

1) Monitoring plan. 2013. MADERACRE SAC. 2) Social Responsibility Plan . 2012. MADERACRE SAC. 3) Program Environment Friendly Projects for producer in the REDD project area.S/F. Madre de Dios

Amazon REDD Project. 4) Social Responsibility Plan Bélgica Native Community. 2013. Área de Responsabilidad Social de

Maderacre. MADERACRE SAC. 5) Conduct Code for Maderacre and Contractors Companies Staff. 2012. MADERACRE SAC. 6) Internal Work Norm. S/F. MADERACRE SAC. 7) Qualitative Report on Social Impact. 2013. MADERACRE SAC. 8) Meeting minute of the Advisory Committee of Communitarian Relationships: 01 August 2012.

9) Impacts Prevention and Mitigation Plan. MADERACRE SAC.

10) Operative Annual Plan of the Social Responsability Area. MADERACRE SAC.


11) Communication Plan. MADERACRE SAC. 12) Support Program for the Communitarian Development. MADERACRE SAC. 13) Social Welfare Program. MADERACRE SAC. 14) Social Business Responsibility Program. MADERACRE SAC. 15) Informe Taller de Participación Ciudadana. 2012. Empresa MADERACRE SAC. 16) Assessment Protocol. S/F. MADERACRE SAC. 17) Protocol for Relationship with Isolated Indigenous People. 2008. MADERACRE SAC. 18) Protocol for the Constructive Transformation of Conflicts. 2013. MADERACRE SAC. 19) Protocol for Addressing Citizen Inquiries and Requests. 2012. MADERACRE SAC. 20) Health, Industrial Safety and Environment Guide for Contractors. 2011. MADERACRE SAC. 21) Industrial Safety Regulations. MADERACRE SAC. 22) Report on the verification of the status and use of the Personal Protection Equipment of the contributors to

the MADERACRE SAC company: Months: January and April 2014. 23) Report: Informative lectura on Occupational Safety and Health. 2013. MADERACRE SAC. 24) Custody Comprehensive Plan. 2013. MADERACRE SAC. 25) Worker’s Social Conduct Code. 2011. MADERYJA S.A.C 26) Communitarian Relationships Plan. 2011. MADERYJA S.A.C 27) Order, Hygiene, and Health Protocol. 2011. MADERYJA S.A.C 28) Conflict Solving Protocol of MADERYJA S.A.C. 2011. MADERYJA S.A.C 29) Safety Regulation. 2013. MADERYJA S.A.C 30) Forest Management Practices Regulation in the Operations of Workers, Clients and/or Contractors Inside

the Forest Concession of Maderyja S.A.C. 2012-2013. MADERYJA S.A.C 31) Social Conduct Code of Maderyja S.A.C.2013. MADERYJA S.A.C 32) Training Plan of Nature Wood (Peru) SAC. Bosque. S/F .MADERYJA S.A.C 33) Training Program of Maderera Rio Yaveryja- Bosque. 2011 -2012- 2013. MADERYJA S.A.C 34) Report of Social activities and Relationship of Maderyja S.A.C. 2011 -2012- 2013. MADERYJA S.A.C 35) Training Report on the subject ¨Solid waste management in the camp at the forest-Iñapari¨.2013.

MADERYJA S.A.C 36) HCVF Communication Report. 2011. MADERYJA S.A.C 37) Control and Surveillance Report. 2011-2012-2013. MADERYJA S.A.C 38) Protection, Control, and Surveillance Plan of the MADERYJA S.A.C Concession. 2011. MADERYJA

S.A.C. 39) Assessment of Wildlife Maderacre 2011. MADERACRE SAC. 40) Identification of HCVF MRA 2011. MADERACRE SAC. 41) Monitoring of wildlife in the maderacre S.A.C. concession, Madre de Dios. MADERACRE SAC. 42) Structure and composition of forest species in four permanent samplig plots at the Maderacre forest

concession, Madre de Dios. MADERACRE SAC. 43) Assessment of the natural regeneration of wood species in two plots with low anual cut under

management of the Maderacre S.A.C. forest concession, Madre de Dios. MADERACRE SAC. 44) Monitoring of forest operations at the forest concession, Maderecre SAC. MADERACRE SAC. 45) Flora composition and forest structure in the Maderacre SAC concession, Madre de Dios. MADERACRE

SAC. 46) Forest management general plan Maderacre SAC concession. MADERACRE SAC. 47) Annual operative plan for the forest concession with timber purposes POA 2013 – 2014. MADERACRE

SAC. 48) Environemtal impact study semi-detailed Maderacre SAC concession. MADERACRE SAC. 49) Letter to Clas Tres Fronteras. MADERACRE SAC. 2014. 50) REDD consultant contract. Maderacre y Maderyja. 2014 51) Lists of attendance to training events. Maderacre y Maderyja. 2014 52) Communitarian relationship plans. Maderacre y Maderyja. 2014 53) Social responsibility plan. Maderacre y Maderyja. 2014 54) Support program for communitarian development. Maderacre y Maderyja. 2014 55) Introduction of Responsible for communitarian relationships. Maderyja. 2014 56) CCB Implementation Report. Maderacre y Maderyja. 2014

3.4 Stakeholder consultation process (if applicable)


The objectives of the strategy for consultation with stakeholders were: 1) To guarantee that the population becomes aware of and is informed about the audit process and its

objectives; 2) To verify the level of knowledge about the Madre de Dios Amazon REDD Project and the

impelementation of the activities described in the PIR with the involvement of the population; and 3) To offer different opportunities so the public informs and expresses to the audit team its opinions

about the subjects discussed during the interviews and other critical issues that may arise.

The list of stakeholders was determined by the audit team: a) based on the documentation previously submitted by the project proponent, b) the explanation of the project during the opening meeting. All stakeholders chosen were notified and interviewed according to the proposed schedule. The subjects covered were linked to what is described by the Implementation Report (PIR). In all the cases, the stakeholders interviewed showed willingness for answering to the subjects covered by the audit team and were enhanced with their personal inputs about the topics. The interaction process with stakeholders does not end after the visit to the field or after the finalization of the verification report. RA-Cert pays attention, at any moment, to the comments about the activities implemented by Maderacre and Maderyja in the framework of the Madre de Dios Amazon REDD Project, such coments are the foundation for conducting the assessments or field audits.


Appendix A: COMPANY DETAILS 1 CONTACTS

1.1 Primary Contact for Coordination with Rainforest Alliance

Primary Contact, Position: Jose Luis Canchaya, Commercial Manager

Address: Carretera Inapari-Santa Marta Km 3.5, Inapari, Tahuamanu, Madre de Dios, Peru

Tel/Fax/Email: 51 982798119, [email protected]

1.2 Billing Contact

Contact, Position: Same as above

Address: Same as above

Tel/Fax/Email: Same as above

2 Rainforest Alliance Website Fact Sheet

Note: Upon Validation, the Rainforest Alliance website posts and maintains Fact Sheets for companies with the information in the table below.

Field Text for Fact Sheet Has this Info Changed?

Contact, Title:

(Sales & Marketing)

Jose Luis Canchaya, Commercial Manager Yes No


Yes No

Tel/Fax/Email/Website: 51 982798119, [email protected] Yes No

Products/Descriptions: N/A Yes No

3 Verification Scope

3.1 Scope Definition:

The scope of the verification audit is to assess the conformance of Madre de Dios Amazon REDD project in Iñapari, Madre de Dios against the VCS Version 3 and CCBA Standard First Edition (2005) Standard. The objective of this audit is to assess the implementation of the validated GHG project and the calculated GHG emission reductions and/or removals stated in the project GHG assertion included within the project monitoring report. The project covers an area of 98,932 hectares. The land is state tenure. The project has a lifetime of 38 years. Rainforest Alliance’s proposal involves a verification audit against the following documents, which together comprise the Verified Carbon Standards and Climate, Community, and Biodiversity Project Design Standards:

Verified Carbon Standard Program Guide Version 3; Verified Carbon Standard Version 3; Verified Carbon Standard Agriculture, Forestry and Other Land Use (AFOLU) Requirements Version 3; Verified Carbon Standard AFOLU Non-Permanence Risk Tool Version 3; Verified Carbon Standard Program Updates (please see VCS website for the latest updates); and as applicable, The VCS approved methodology/modules used by the project.


Climate, Community, and Biodiversity Project Design Standards (First Edition) 2005

3.2 Type of Legal Entity: Anonymous Closed Society (S.A.C.)

3.3 Jurisdiction: Peru


Appendix B: STANDARD CHECKLIST CCB STANDARDS

1 Evaluation of Project

Project Name: Madre de Dios Amazon REDD project

Contact for Verification: Jose Luis Canchaya, Commercial Manager


Tel/Fax/Email: 51 982798119, [email protected]

2 Evaluation Details

Auditor(s), Qualifications: William Arreaga, Lead auditor

Miriam Matorela, Social Expert

Campbell Moore, Audit Team Member

Sites Visited: Maderacre concession in the project area.

Private farm in the leakage belt.

People Interviewed, Titles: See list in appendix C

3 Standard Checklist

Climate, Community and Biodiversity Project Design Standards First Edition, May 2005

G1. Original Conditions at Project Site - Required Concept The original conditions at the project site before the project commences must be described. This description, along with projections (G2), will help determine the likely impacts of the project Indicators The original conditions at the project site before the project commences must be described. This description, along with projections (G2), will help determine the likely impacts of the project: General Information

1) The location of the project and basic physical parameters (e.g. soil, geology, climate).

Findings None.

Conformance Yes No N/A

CAR/OBS It does not apply to this verification audit.

2) The types and condition of vegetation at the project site.

Findings None.




Climate Information 3) Current carbon stocks at the Project site(s), using methodologies from the Intergovernmental on Panel on

Climate Change´s Good Practice Guidance (IPCC GPG) or other internationally-approved methodologies (e.g. from the CDM Executive Board).

Findings The current carbon stocks of the project were estimated for the respective monitoring period, implementing the module methodology of the VCS standard, denominated VM0007 just as was established during the validation of the project. The specific module M.MON was utilized for monitoring the potential deforestation and degradation factors. An analysis utilizing satellite images was done and the results suggest that deforestation was not registered (only one change in land use at two sites located in the leakage belt, from secondary forest to cattle raising). Regarding the degradation component, the proponent developed a methodology denominated PARA which demonstrated that there are no impacts from degradation according to the VCS modular methodology.

In general terms, the determination of current Carbon stocks after considering the degradation and deforestation level at both concessions is the following: Montana forests 505 tCO2e/ha; Terrace forests 548 tCO2e/ha; Bamboo (pacales) 604 tCO2e/ha; and other ecosystems (tree swamp) 543 tCO2e/ha.


CAR/OBS N/A

Community Information

4) A description of communities located in and around the project area, including basic socio-economic information (using appropriate methodologies such as the livelihoods framework).

Findings The description of community submited in the PDD, considers the first edition of the CCB standard; it is based on an analysis done according to the Livelihood Safety approach. Furthermore, there are several project implementation documents, such as the Communitarian Relationships Plan and the Social Responsibility Plan, which include a socioeconomic description of several aspects of the Bélgica Native Community, who is the main beneficiary of the Madre de Dios Amazon REDD project (located in the leakage belt of the project) and covers the necessary aspects: demography, health, education, basic services, economic activities, communication among the companies and the neighbouring community. When the audit team conducted the consultation meeting with the people and the authorities of the Bélgica Native Community (N.C.), they pointed out that during the last years the population grew and until the moment of the consultation, the N.C. was made up of a total of 29 families. Also, they mentioned that all the sectors or areas have water and electric lights; which first began in the Centro Bélgica in 2005, as a result from the management done by the communitarian authorities before the Madre de Dios Amazon REDD project activities were initiated, and then extended to other sectors: Alto Bélgica and Japón, through the donation, of motors, by the companies with who they have treaties.

During documentation review it was verified that the demographic data described in several documents of the project into 2013 (Social Responsibility Plan, Communitarian Relationships Plan, others), refer to the fact that the N.C. only has 16 families. During the review of the Project Implementation Report (PIR), it did not include any demographic data related to the Bélfica N.C. Therefore, it is evident that the demographic data in the parragraph above has not been properly updated, limiting the appropriate identification of the project beneficiaries for the implementation of its activities, such as the Program of Environmentally Friendly Projects.


CAR/OBS CAR 01/14


5) A description of current land use and land tenure at the project site. (See also G5).

Findings Sections A and D of the PDD indicate the land use in the project area currently is sustainable forest management of timber and non-timber products, private forest concessions areas and natural protected areas. This was confirmed by the auditors to be up-to-date and has not changed. Land tenure in the project site is demonstrated by the concession contracts granted by the Peruvian government to the companies Maderacre SAC and Maderyja SAC, who have been operating in the project site since 2002. Since 2009 both companies have included the subject of environmental services. Currently both are valid through the figure of Forest concessions Maderacre & Maderyja, with their “concession contracts” for 40 years, according to what was verified: Contracts N°17-TAH/C J 001-02 and N°17-TAH/C J004-02. Both contracts were confirmed to have been ratified during 2006. The project area is 98,932 ha, (49,376 of Maderacre and 49,556 of Maderyja), as described in the Project Implementation Report (PIR). The audit team obtained evidence from the proponent, and confirmed that in the project area and in the leakage belt no deforestation events have been registered which result into land use change.


CAR/OBS N/A

Biodiversity Information 6) A description of current biodiversity in the project area and threats to that biodiversity, using appropriate

methodologies (e.g., key species habitat analysis, connectivity analysis), substantiated where possible with appropriate reference material

Findings



7) A list of all IUCN Red List threatened species (which encompasses endangered and vulnerable species)

and species on nationally recognized list (where applicable) found within the project boundary. (See also B1).

Findings The PD and PIR refer to what is established in the forest management plan, keeping under strict protection the flora and fauna species considered in the Supreme Decree Nº 043-2006-AG, which also refers to the protected species according to the IUCN list of threatened species. In the field the auditors found that the flora species such as cedar (Cedrela odorata) and mahogany (Swietenia macrophylla) are harvested in accordance with the management plan and the operative plans, but considering the normative that rules according to CITES (appendix III and appendix II in that order).

This decree refers to the UICN red list of endangered species which serves as reference for Peru, understading that national red lists do not exist. In this way, the audit team did not identify inconsistencies regarding conformance with the standard.


CAR/OBS N/A

G2. Baseline Projections Concept


An analysis of projected land-use trends is necessary to predict likely on-site changes without implementation of a project. This “without-project” future land-use scenario enables comparison of the project’s likely impacts with what would otherwise have occurred. Indicators The Project Proponents must develop a defensible and well-documented "without-project" future land-use scenario and baseline projections.

1) Description of the most likely land-use scenario in the absence of the project, identifying whether the scenario assumes that existing laws or regulations would have required that project activities be undertaken anyway.1

Findings Ninguno.



2) A projection of future carbon stock changes in the absence of the project, based on the land-use scenario described above. The timeframe for this analysis can be either the project lifetime (see G3) or the project accounting period, whichever is more appropriate2. If there is evidence that non-CO2 greenhouse gas (GHG) emissions such as CH4 or N2O are more than 15% of the baseline GHG fluxes at the project site (in terms of CO2 equivalents), they must be estimated.

Findings Ninguno.



3) Description of how the “without-project” scenario would affect local communities in the project area.

Findings Ninguno.



4) Description of how the “without-project” land-use scenario would affect biodiversity in the project area.

Findings The PoA presents a good description of how the “without-project” scenario would impact the biodiversity in the region.



5) Description of how the “without-project” land-use scenario would affect water and soil resources. (See

also B5).

Findings The PoA describes how the “without-project” scenario would affect water and soil resources.



G3. Project Design & Goals - Required 1This is important for justifying whether the benefits being claimed by the project are truly “additional”, i.e., the climate, community, and biodiversity impacts that would not be likely to occur without the project. For example, actions implemented by the project must not be required by law, or Project Proponents must make a compelling case demonstrating that the pertinent laws are not being enforced. The Project Proponents must provide credible and well-documented analyses (poverty assessments, farming knowledge assessments, remote sensing analysis, etc) showing that without the project, improved land-use practices would be unlikely to materialize. 2 In some cases, the project lifetime and the project accounting period may be different.


Concept The project must be described in sufficient detail so that a third-party can adequately evaluate it. Projects that operate in a transparent manner enable stakeholders and outside parties to contribute more effectively to the project. Indicators The Project proponents must:

1) Provide a description of the scope of the project and a summary of the major climate, community and biodiversity goals.

Findings The scope of the REDD project as well as its objectives and goals have not changed since the time of validation. The project aims to drastically reduce the deforestation, to control the forest degradation as a result from human activity, and to obtain the social and environmental co-benefits.

Through the achievement of the benefits mentioned, the project seeks to reduce the presure on lands and resources mostly in the areas sourronding the project. In the findings of the following indicator (G3.2), the audit team widely describes the degree of compliance with the objectives included in the PD.


CAR/OBS N/A

2) Describe each major project activity (if more than one) and its relevance to achieving the project’s goals.

Findings In the Project Design Document - PDD and the Project Implementation Report (PIR) the responsibles for implementing the project describe the implementation activities based on the objectives of the Madre de Dios Amazon REDD project. During this first period, the project has been efficiently implementing just one part of the activities established that have been verified by the audit team during the inspections and field visits, consultation with stakeholders, and documentation review.

Objetive 1: To contribute to the sustainable development of the rural producers in the buffer zone of the project:

- Socializing and divulgation of the project’s objectives: it was verified through

documentarion (digital and printed versions) review that the project does not register conformance with this activity because it was evident that the divulgation of the project and their objectives has been mostly done only in national and regional public events, such as Workshops, Symposiums, and Conferences; as well as the publication of documents and press notes in webpages; radio and national TV channels interviews. However, records/files with specific documentation about the socialization done with rural local producers were not found. During the consultation with stakeholders and rural mestize producers settled in the project zone (leakage belt), they indicated that the objectives and the activities have not been constantly communicated to them; therefore, they do not understand the content of the project and do not know its current situation.

Identification and selection of proposals for environmentally friendly productive project: for this aspect, the audit team reviewed a document denominated: Program – Environmentally friendly projects for Producers located in the REDD Project Surrounding Area. This document however, was not dated, but considers: The identification and selection of environmetally friendly initiatives, development of capabilities of the members of the associations whose initiatives are selected, design of the project selected, support for co-funding the selected projects, support and implementation of selected projects, and finally, monitoring of the projects. However, none of these actions have occurred, according to what is described in the PIR, as planned to be implemented during the first period of the project. However, when the


project proponent presented the Program - Environmentally friendly projects for Producers located in the REDD Project Surrounding Area, the implementation schedule was planned to begin on May 2014, as confirmed by the proponent during the field visit. Although in the PDD, the starting date proposed should have been the year 2009. Besides, the implementation schedule for the environmentally friendly projects indicates May 2014 as the starting date. Currently the hiring of the consultant has not begun, and thus, all the following activities. Moreover, the new date proposed for the implementation of the program is not in the PIR. Objetive 2: To reduce the weakness of the project area due to external

deforestation and degradation factors:

- Review and update of the Custody Plan: Conformance with the implementation of this activity was verified through the review of the Comprehensive Custody Plan of both concessions, and their implementation according to their schedule. The Bélgica Native Commuity expressed knowledge about the content of: patrolling, maintenance of boundaries, placement of sings and landmarks; and the participation of the community patrolling along with the company Maderyja. This version is supported with the treaty reviewed, to conduct joint patrollings between the Bélgica Native Community and the company Maderyja in the zone of the Acre River, North boundary of the concession and boundary with the Brazilian villages.

- Instalation of the Control Booth PCA 5 Maderacre: During the field inspection, two control booths were visited: Control booth in POA 01 of Maderacre and the control Booth to be originally installed in PCA 5, which was moved to the entrance of the Bélgica Native Community, placed in agreement with Maderyja. Both have permanent staff 24 hours/day, with the main function of ensuring the custody of the road and to verify the entry, exit and registry of people and/or transport authorized by the companies and the Native Community. Conformance with the implementation of this activity was verified; and therefore, is in agreement with the PIR.

- Delimitation of 100% of the limits of the 2 forest concessions, placement of landmarks in the trig point of the concessions and improvement of the signaling inside the concessions: During the field inspection, two boundaries were visited and the existence of separation walking paths, that were properly built was verified. Also verified were landmarks placed at the trig points of the area and informative signs with location maps were observed at the entrance on the concessions, and the Bélgica Native Community. The auditors also observed mark signs inside the concessions that were found to be in good condition. Last, photographs of the placement of landmarks at the trig point of the concessions were reviewed. This evidence demonstrated compliance with the implementation of these activities.

- Periodic and annual patrolling in vulnerable sections: The existence of reports on patrolling and annual maintenance to the boundaries of Maderacre and Maderyja since 2010 to 2013 were verified in zones such as: Acre River, sector Cashuera Uku, sector Pumaquiro, Sofia Creek, Mala Creek and Prata Creek, Sector Yaverija River – Noaya River, Sector Noaya River- Qdda. Cobija, Sector Maderacre – Bélgica NC and road rounds. None reported actions related to invasions or ilegal activities. In a meeting with members of the Bélgica Native Community, they confirmed their participation in some of these patrollings. Compliance with the implementation of this activity is evident.

- Annual monitoring of possible invasions using satellite images and field verification of the sectors identified as potential invasion points (for deforestation): according to the documentation review of maps and interviews with specialists responsible for the annual monitoring of the verification period: 2009-2012 and 2012-2013, there are no signs of invasions into the project area. With the field verification of the vulnerable sectors for this period there are no signs of invasions into the areas identified as Project, nor deforested areas during the 2009-2013 period. Compliance with the implementation of this activity was demonstrated.


- Development and implementation of dissemination mechanisms of environmental education for children, Young people and communities involved with the Project and presents table N°2 with a list of activities related to the subject since 2009 until 2013. Stakeholders from local institutions indicated that the project held a talk about residue management and other subjects, aimed to students and teachers of the Elena Bertha de Iñapari school in 2010, this information was verified by reviewing an attendance list to the event and an awareness survey made in 2012. However, the project proponent did not submit to the audit team the execution of other activities listed in Table N° 2 of the PIR, correspondieng to 2009 (introduction of the Madre de Dios Amazon REDD Project and the introduction and workshop about the Madre de Dios Amazon REDD Project), the three talks held in

2010 (two presentations about global warming and Carbon credits, and global warming), the workshop held in 2011 (Introduction and workshop about the Madre de Dios Amazon REDD Project), what was done in 2012 (Participative workshop with the community), evidences supporting the implementation of the two

presentations in 2013 (Natural Resources).


CAR/OBS CAR 02/14

3) Provide a map identifying the project location, where the major project activities will occur, and geo-referenced boundaries of the project site(s).

Findings In sections C and D of the PDD are georeferenced maps of the Maderacre and Maderyja concessions and the area close to the interoceanic road and the fire sources reported in 2008; besides, the technical team submitted georeferenced maps in digital and printed format with mainly the location of project leakage belt, where the type of forests can be seen, pacales, soil deforested areas, and leakage limits. However, the maps reviewed do not include the neighboring concessions nor the villages with their respective name, where the main activities of the project are being implemented. And, the project proponent states that the Bélgica Native Community is located in the leakage belt of the project; however, in the map it is located in the buffer zone.


CAR/OBS CAR 03/14

4) Provide a timeframe for the project’s duration and the rationale used for determining the project lifetime. If the accounting period for carbon credits differs from the project lifetime, explain.

Findings The REDD project started on May 31, 2006 with a 20 years lifetime. This has not been modified. The commitment from both companies is evident, for example through the implementation of good management practices it has been possible to keep FSC certification of the concessions.


CAR/OBS N/A

5) Identify likely risks to climate, community and biodiversity benefits during the project lifetime. Outline measures that the project plans to undertake to mitigate these risks.

Findings Section C-10 of the PDD clearly describes the Possible risks for the project, the mitigation measures for the benefits from the climate, community and biodiversity during the project lifetime:

Illegal harvesting: Maderacre and Maderyja complied by setting the control booths at the vulnerable entrance points, with permanent forest guards at each point. This mitigation measure is being implemented and it was verified in the field.

Forest fires caused by the harvesting and fire activities: the project is funding alternative initiatives for the generation of income for the local families whitout destroying the nearby forest. The implementation of this mitigation activity is in progress, as verified through the hiring of local workers for the forest


management, whereas the environmentally friendly projects program has not been implemented up to this date. This was verified through interviews and review of the relevant documentation.

Invasions by human settlements: Until the 2013 period, the project did not have to implement the process for planed settlement of new inmigrants into the forest concesions. This was verified through field inspections, documentation review and interview. Currently, this type of event have not occurred.

Soil erosion: according to the low impact work plan: the stump is left, and with specialized machines, such as forest caterpilar tractors, the stumps are dragged and lifted by winche, leaf litter and organic matter are not removed from the road, in order to minimize the risk of water streams (FSC requires managers to minimize the environmental impacts). This was verified through field inspection and documentation review.

Loss of forest genetic material: According to the Management Plan none of the companies are harvesting trees under the minimum diamenter registered (defined in the management plan and according to scientific researches) in order to preserve some seed trees. This mitigation activity was verified through field inspection and documentation review.

Water contamination with fuel extension: Staff operating the containers have been trained before handling the fuel tanks. This mitigation activity was verified through interview in the field with workers and documentation review of the training events.

Machine operator accidents and wildlife attacks (snakes, etc.): Through documentation review of reports, manuals, trainings and interviews it was verified that each work team (chainsaw, field workers, census, others) when going out to the forest always wears the Personal Protection Equipment (PPE), required by the industrial safety manuals; furthermore, the workers said that each team takes to their work area a first aid kit with the basics (antivenom – PESOA for exemple).


CAR/OBS N/A

6) Document and defend how local stakeholders have been or will be defined.

Findings A complete list of stakeholders was identified at the begining of the project and is in section A.1 of the appendix in the PDD. Further, the Social Responsibility Plan of 2012 has a map of actors where it defines in a general way, the actors related to the project: Plots of the rural zone of Iñapari, the Bélgica Native Community and the urban zone of Iñapari.

During the first period of the project, the activites have been focused on the Bélgica Native Community, according to the documentation reviewed, and the consultation process conducted by the audit team (social support, trainings about the forest area for labor oportunities, contribution to the improvement of the health and education, mainly).

The audit team verified that for the monitoring period, the local stakeholdes were basically the same as the ones defined during validation of the project’s design.


CAR/OBS N/A

7) Demonstrate transparency by: making all project documentation publicly accessible at, or near, the project site; only withholding information when the need for confidentiality is clearly justified; informing local stakeholders how they can access the project documentation; and by making key project documents available in local or regional languages, where applicable.

Findings The project has documentation about the PDD and the PIR, and on forest certification subjects in electronic and printed format at the offices of Maderacre and Maderyja. The documents of the project are also socialized through several workshops, conferences, radio, TV, and written press communications, at national and regional level. The project


design document is available on the Greenoxx website, the summary of the project and the PIR are in Spanish published on the web and at the office of the project. Other documents of the project such as talks are available through different links. At the local level, the stakeholders consulted indicated that the project has held meetings with information about its activities to local institutions, the Advisor Committee, the community, and to the employees of both companies which in some cases belong to the Bélgica N.C. and are who also replicate what they have learned about the project. In order to support the previous, documentation was reviewed and it was found meeting minutes from2009 where the local actors from the social ambit participated, here the project was introduced and the impressions about it were collected. From the begining of the project, both companies have demonstrated total transparency, only limited by the interests of the investors who, for obvious reasons, limit the disclosure of certain financial information.


CAR/OBS N/A

G4. Management Capacity - Required Concept The success of a Project depends upon the competent of the implementing management team. Indicators The Project Proponents must:

1) Document the management team’s experience implementing land management projects. If relevant experience is lacking, the proponents must demonstrate how other organizations will be partnered with to support the project.

Findings In the PIR and in some supporting documentation, the project proponent explained with great detail the work structure for the implementation of the REDD project and the achievement of the objectives. The audit team considers that the permanent staff and consultants have enough expereince to efficiently implement the project activities, in accordance with the interpretation of the CCBA standard (as well as FSC and VCS). During the field visit the audtiors assessed key discussion points whit the technical team of the project, and weaknesses about it were not identified.


CAR/OBS N/A

2) Demonstrate that management capacity is appropriate to the scale of the project.

Findings Permanent or temporary staff of the project has enough technical capability (administrative, financial, and forestal) for the management of the project and the implementation of the activities defined in the schedule. The project gets advice through the hiring of experts in several areas, for example, the analysis of satellite images to identify the potential deforestation areas, and the corresponding Carbon densities.


CAR/OBS N/A

3) Document key technical skills that will be required to successfully implement the project and identify

members of the management team or project partners who possess the appropriate skills.

Findings Ninguno.




4) Document the financial health of the implementing organization(s).

Findings Ninguno.



G5. Land Tenure - Required

Concept There should be no significant land tenure disputes in the project area, or the project should fundamentally help to resolve these tenure issues.

Indicators Based on information about current land tenure provided in G3, the Project Proponents must:

1) Guarantee that the project will not encroach uninvited on private property, community property, or government property.

Findings Being considered a potential risk and to avoid conflicts resulting from invasion to land limits, both Maderacre and Maderyja had signed limit acts with their adjacent neighbors, most of them being forest concessions; and were reviewed by the auditors. The limits’ coordinates are registered for the forest concessions according to the concession contracts granted by the goverment and in the case of the Bélgica Native Community according to its property title. Moreover, all the trig points are demarcated with landmarks and the limits with paths and informative signs, as observed in the field, and confirmed in photographs and documented reports. With these activities the project is implementing strategies to guarantee the private property of Maderacre and Maderyja.


CAR/OBS N/A

2) Guarantee that the project does not require the relocation of people or any relocation is 100% voluntary and fundamentally helps resolve land tenure problems in the area.

Findings It was verfied during the field inspection, documentation review and interviews that currently, no people are settled inside the limits of the project. Therefore, there are not land tenure issues or trials for the voluntary relocation of people settles inside the limits of the project area.

The audit team verified that none of the activities programmed for the monitoring period would cause the relocation of people or communities.


CAR/OBS N/A

3) Describe potential “in-migration” of people from surrounding areas, if relevant, and explain how the project will respond.

Findings According to the PDD, the project has been designed considering as a potential risk the immigration of people from the surrounding areas. The project has considered in its PDD- annex C.1 the implementation of activities and/or programs to attract a local work force, of both qualified and non-qualified individuals.

- Suport to business initiatives to absorve inmigrant families as Labor force, currently, the project has not needed to implement this activity since there no immigration has been registered.

- Signaling programs and protection to the concession boundaries, this activity has been implemented through the walk paths, placement of landmarks and signs, which


were verified through documentation review, field inspection and interviews.

- The coordination and support to the actions with adjacent concession to protect the concessed forest in general. To implement this activity, boundary acts were signed, treaties for joined patrolling were signed with the Bélgica Native Community and the placement of control booths at vulnerable points, and its safekeeping by the indigenous people of the community. Implementation of these activities was verified through the review of documented evidence, inspections, interviews; as described in the indicators required by the standard in the previous sections.


CAR/OBS N/A

G6. Legal Status - Required Concept The project must be based on a solid legal framework (e.g., appropriate contracts are likely to be in place) and the project must seek to satisfy applicable planning and regulatory requirements. During the project design phase, the Project Proponents should communicate early on with relevant local, regional and national authorities and allow adequate time to earn necessary approvals. The project design should be flexible to accommodate potential modifications that may arise to secure regulatory approval. Indicators The Project Proponents must:

1) Guarantee that no laws will be broken by the project.

Findings All planning and implementation documents regarding the forest management and implemented by the Madre de Dios Amazon REDD project agree with the valid Peruvian forest legislation, as well as the treaties and international protocols ratified by Peru. According to what was confirmed, during the interview with the forest authority of the Province of Tahuanamu, it is important to point out that currently the forest concession of Maderacre is undergoing a transition and implementing the respective paper work to unify the Environmental Impact Assessment, Annual Operative Plan, and the Forest Management General Plan since currently it owns the following forest concessions: Paujil, Amatec and Gramas (before Emex). Auditor interviews confirmed that both companies always respect the national, environmental, and labor laws.


CAR/OBS N/A

2) Document that the project has, or expects to secure, approval from the appropriate authorities.

Findings None.


CAR/OBS It does not apply to this verificaiton audit.

G7. Adaptative Management for Sustainability - 1 Point, Optional Concept


Adaptive management is a formal, systematic, and rigorous approach to learning from the outcomes of management actions, accommodating change and improving management. It involves synthesizing existing knowledge, exploring alternative actions and making forecasts about their outcomes. 3 Adaptive management is based upon the premise that ecosystems and social systems are complex and inherently unpredictable. Adaptive management views land management actions as learning opportunities and as potential experiments for systematically testing assumptions and identifying adjustments that could benefit the project. It enables a project to evolve to meet changing or unanticipated needs, and can help ensure that the project realizes its goals over the long term. Indicators The Project Proponents must:

1) Demonstrate how management actions and monitoring programs are designed to generate reliable

feedback that is used to improve project outcomes.

Findings The adaptative management plan was explained in detail to the audit team. The supporting documentation was reviewed during the field stage.

Both companies have technical documentation, to guide the forest activities and to receive periodic feedback in order to improve the implementation of the practices, as well. FSC certification has also been useful for the improvement of the management, harvesting, and monitoring of negative impacts. The audit team also identified that part of the feedback of the project is related to the inputs provided by the local communities.


CAR/OBS N/A

2) Have a management plan for documenting decisions, actions and outcomes and sharing this

information with others within the project team, so experience is passed on rather than being lost when individuals leave the project.

Findings The REDD project is based on friendly relationships between both concessions, and with the local communities and the social support organizations. Some programs aimed to disseminate the information to potential interested parties have begun, but it is still possible to refine the strategy.

Internally, it is evident that the parties involved are making improvements over time since they document the lessons learned. This type of input is carried out to national platforms, for example to the REDD table in Peru, where similar cases are analyzed.


CAR/OBS N/A

3) Demonstrate how the project design is sufficiently flexible to accommodate potential changes and that

the project has a defined process in place to adjust project activities as needed.

Findings The REDD project is based on what is established (and already validated) in the PD and in the PIR, according to the CCBA standard. At technical level, the activities are guided from the implementation of operative annual plans and the general management plan of the concessions. Thess technical documents are constantly registering changing conditions in order to improve the management, and the resource harvesting.

At the individual level, the REDD project is designed for recording the events, positive and negative, and then using that information as adaptative management. The audit team did not find inconsistencies to this matter.


CAR/OBS N/A

3 The definition of Adaptive Management and several of the indicators were based on Nyberg (1999). An Introductory Guide to Adaptive

Management.


4) Demonstrate an early commitment to the long-term sustainability of project benefits once initial project funding expires. Potential activities may include: designing a new project that builds on initial project outcomes; securing payments for ecosystem services; promoting micro-enterprise; and establishing alliances with organizations or companies to continue sustainable land management.

Findings Both forest concessios have maintained the FSC certification as internal work policy. According to what was indicated in the verification stage, although currently no benefit has been obtained from it, the planning and budget are aimed to keep the certification in place. Moreover, Maderacre is in the transition phase for including more natural forest area into the FSC certificate. This was confirmed by the responsible persons of the forest office in Iñapari.

Internally, the REDD project is considered as a supplementary project to the resource management and conservation efforts. And so, it is foreseen to execute productive projects identified along the way through a participative diagnosis with the communities (mostly the Bélgica native community). Concrete evidence in this regard was found.


CAR/OBS N/A

G8. Knowledge Dissemination - 1 Point, Optional Concept Field-based knowledge can be of value to other projects. If actively disseminated, this information can accelerate the adoption of innovative practices that bring benefits both globally and locally. Indicators The Project Proponents must:

1) Describe how they will document the relevant or applicable lessons learned.

Findings In the PIR there is a monitoring matrix for documenting the activities and results from the project. However, it does not document the relevant and applicable lessons learned and how will be documented. The project did not supported this indicator with additional information to guarantee its compliance.


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2) Describe how they will disseminate this information in order to encourage replication of successful

practices. Examples include: undertaking and disseminating research that has wide-reaching applications; holding training workshops for community members from other locales; promoting “farmer to farmer” knowledge-transfer activities; linking to regional databases; and working with interested academic, corporate, governmental or non-governmental organizations to replicate successful project activities.

Findings It was verified through interviews, review based on the PIR, and additional documentation that the project is disseminating its information through several communication channels: participation of students in training and research talks; meetings with the community; training of the company workers through workshops, internal talks, others; participation with presentations in workshops and events, such as the Dakar 2013; promotion of videos, press notes in newspapers and TV interviews, and through the publication of documents in several web links (interclima. minam.gob.pe; rpp.com.pe; openei.org; www.youtube.com; s3.amazonaws.com; www.greenoxx.com).


CAR/OBS N/A

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CL1. Net Positive Climate Impacts - Required Concept The project must generate net positive impacts on atmospheric concentrations of greenhouse gases (GHGs) within the project boundaries and over the project lifetime. Indicators The Project Proponents must:

1) Use the methodologies of the Intergovernmental Panel on Climate Change’s Good Practice Guidance (IPCC GPG) to estimate the net change in carbon stocks due to the project activities. The net change is equal to carbon stock changes with the project minus carbon stock changes without the project (the latter having been estimated in G2). Alternatively, any methodology approved by the CDM Executive Board may be used. This estimate must be based on clearly defined and defendable assumptions about how project activities will alter carbon stocks and non-CO2 GHG emissions over the duration of the project or the project accounting period.

Findings The analysis made use of Landsat 8 data and covered both the project area and the leakage belt. The analysis meets the minimum requirement for data processing, georeferencing, and cloud/shadow removal. M-Mon requires the following post processing for monitoring intervals (2012-2013): • Calculate the area of each category within the project area and, where required, the leakage belt. • Update the Forest Cover Benchmark Maps for the project area and leakage belt. • Update the remaining area of forest in RRL All of these requirements were met in the analysis. The overall classification accuracy was greater than 90%, meeting the requirements of the methodology. No deforestation was observed during the monitoring period in the project area. The audit team reviewed the remote sensing analysis conducted by the proponent to detect deforestation. The proponent is harvesting in both concessions in the project scenario. The proponent quantifies the change in carbon stocks from harvesting appropriately, incorporating the biomass removed and logging damage factor. Other sources of emissions from harvesting (roads, skid trails, logging decks) have been calculated correctly with actual measurements of these areas in the field multiplied by the forest carbon stock value of the relevant stratum. The audit team sampled the data inputs and confirmed that they were either based on appropriate default values (for example Logging Damage Factor derived from VM0007 M-Mon) or directly measured by the proponent in the field. The audit team was able to clearly follow the logic of the calculations in the spreadsheet from the inputs (volume extracted, area of logging decks, etc.) to the summation of project emissions from harvesting. No nonconformances were identified.


CAR/OBS N/A

2) Factor in the non-CO2 gases CH4 and N2O to the net change calculations (above) if they are likely to

account for more than 15% (in terms of CO2 equivalents) of the project’s overall GHG impact.

Findings As no deforestation was detected in the project area or leakage belt this monitoring period, no emissions from biomass burning have occurred.

No large scale or significant natural disturbance identified during this monitoring period so this value was appropriately omitted.


CAR/OBS N/A


3) Demonstrate that the net climate impact of the project (including changes in carbon stocks, and non-CO2 gases where appropriate) will give a positive result in terms of overall GHG benefits delivered.

Findings In terms of benefits from the project to the climate, according to the definition of the CCBA, the project has encountered that due to the implementation of activities that tend to decrease the deforestation and the degradation, during the monitoring period, there is a decrease in the emissions in the leakage belt (project zone) and virtually zero deforestation in the project area. A total of 872,185 Carbon credits (VCUs) are accounted for as benefits from the project after the respective discounts from the standard (verifried through a VCS verification audit simultaneously conducted by Rainforest Alliance).


CAR/OBS N/A

CL2. Offsite Climate Impacts (“Leakage”) - Required

Concept The Project Proponents must quantify and mitigate likely negative offsite climate impacts; namely, decreased carbon stocks or increased emissions of non-CO2 GHGs outside the project boundary, resulting from project activities (referred to as “leakage” in climate change policy).

Indicators The Project Proponents must:

1) Estimate potential offsite decreases in carbon stocks (increases in emissions or decreases in sequestration) due to project activities.

Findings No GHG emissions from leakage prevention activities were reported as the proponent is not implementing any leakage prevention or mitigation activities. The audit team saw no evidence to contradict this during the field audit.

No deforestation was observed in the leakage belt during this verification period therefore no emissions are attributed to leakage within the leakage belt.


CAR/OBS N/A

2) Document how negative offsite impacts resulting from project activities will be mitigated, and estimate the extent to which such impacts will be reduced.

Findings Since no deforestation was observed in the leakage belt during the verification period, it is not expected that the implementation the project activities cause negative impacts offsite.


CAR/OBS N/A

3) Subtract any likely project-related unmitigated negative offsite climate impacts from the climate benefits being claimed by the project. The total net effect, equal to the net increase in onsite carbon stocks (calculated in the third indicator in CL1) minus negative offsite climate impacts, must be positive.

Findings The calculation of the net changes in the Carbon content were made based on the results obtained from the permanent sampling plots and other means, according to what is required by the standard and selected tools. It was demonstrated that during the monitoring period, the REDD project has generated many positive impacts in terms of atmospheric emission reductions.


CAR/OBS N/A


CL3. Climate Impact Monitoring - Required Concept Before a project begins, the Project Proponents must have an initial monitoring plan in place to quantify and document changes in project-related carbon pools, and non-CO2 GHG emissions if appropriate, (within and outside the project boundaries). The monitoring plan should state which measurements will be taken and which sampling strategy will be used. Since developing a full carbon-monitoring plan can be costly, it is accepted that some of the plan details may not be fully defined at the design stage, when projects are being evaluated by the CCB Standards. This will be especially true for small-scale projects. Indicators The Project Proponents must:

1) Have an initial plan for how they will select carbon pools and non-CO2 GHGs to be monitored, and the frequency of monitoring. Potential pools include aboveground biomass, litter, dead wood, belowground biomass and soil carbon. Pools to monitor must include any pools expected to decrease as a result of project activities. Relevant non-CO2 gases must be monitored if they account for more than 15% of the project’s net climate impact expressed in terms of CO2 equivalents.

Findings The monitoring plan is included in the PD and both were properly validated. At the time of this present verification, the proponent demonstrated that the activities have been implemented in a general way.

The estimation of Carbon stocks was determined utilizing indirect methods and was determined to be in accordance with the applicable standards requirements, methodologies, and the tools.

The auditors confirmed the monitoring plan is being implemented in accordancw with its defined frequency.


CAR/OBS N/A

CL4. Adapting to Climate Change and Climate Variability - 1 Point, Optional

Concept Projects designed to anticipate and adapt to probable impacts of climate change and climate variability are more likely to sustain the benefits generated by the project over the long term. Indicators The Project Proponents must:

1) Identify likely regional climate change and climate variability impacts, using available studies.

Findings The project proponent did not provide evidence about this optional requirement.


CAR/OBS N/A

2) Demonstrate that the project has anticipated such potential impacts and that appropriate measures will

be taken to minimize these negative impacts.

Findings The project proponent did not provide evidence about this optional requirement.


CAR/OBS N/A


CL5. Carbon Benefits Withheld from Regulatory Markets - 1 Point, Optional

Concept When some carbon benefits generated by a project are not sold to satisfy regulatory requirements, additional mitigation action will be required elsewhere to meet these requirements. Therefore, withholding a portion of the project’s carbon benefits from being used in capped markets will result in greater overall climate change mitigation. Moreover, projects that do not sell all their carbon benefits in regulated regimes have the opportunity to experiment with climate change mitigation activities other than the ones eligible under these regimes (such as avoided deforestation, which is not currently creditable under the Clean Development Mechanism). Such experimentation may generate new knowledge that is of value to carbon rule makers and other project developers. Indicators The Project Proponents must:

1. Not sell at least 10% of the total carbon benefits generated by the project4 into regulated GHG markets (e.g., CDM, New South Wales GHG Abatement Scheme, Oregon Standard). Projects can sell these carbon benefits in a voluntary market or retire them.

Findings Since the REDD project also underwent a VCS verification conducted simultaneously with the CCB verification, the proponent utilized the VCS non permanence risk analysis tool to establish that about 10 thousand tons of CO2 equivalent were placed into a buffer account, equivalent to 10% of the credits available for sale.


CAR/OBS N/A

CM1. Net Positive Community Impacts - Required Concept The project must generate net positive impacts on the social and economic wellbeing of communities within the project boundaries and within the project lifetime. In addition, local communities and other stakeholders should be engaged early on so that the project design can be revised based on their input. Finally, projects should ensure that stakeholders can express concerns and grievances to Project Proponents and that these concerns are responded to in a timely manner. Indicators The Project Proponents must:

1) Use appropriate methodologies (e.g. the livelihoods framework) to estimate the net benefits to communities resulting from planned project activities. A credible estimate of net benefits must include changes in community wellbeing given project activities. This estimate must be based on clearly defined and defendable assumptions about how project activities will alter social and economic wellbeing over the duration of the project. The “with project” scenario must then be compared with the baseline scenario of social and economic wellbeing in the absence of the project (completed in G2). The difference (i.e., the net community benefit) must be positive.

Findings It was verified that according to what is required by the indicator, in the project design utilized the “livelihood” methodology for describing the community and the surrounding areas (section F.1). In the same manner, the net benefits from the project were estimated using qualitative indicators which are valid for social research and adjusted

4 Total carbon benefits generated by the project can include those coming from activities that are currently not eligible for crediting under existing regulatory regimes (e.g., avoided deforestation).


to the relevant socioeconomic context of the zone. The assessment is in the annex C.1. of the PDD- Impacts on the community offsite, under the scenario with and without the Madre de Dios Amazon REDD project. The result from the assessment (C.1.b) concludes that the socioeconomic impacts from the project have been classified as positive. Therefore, the benefits for the community are positive and its implementation was confirmed to be described in the activities in the PIR. Auditor findings of its verification are writen along the indicators that correspond to the section of the Community in this verification report.


CAR/OBS N/A

2) Document local stakeholder participation in the project’s planning. If the project occurs in an area with significant local stakeholders, the project must engage a diversity of stakeholders, including appropriate sub-groups, underrepresented groups and women living in the project vicinity. Stakeholders in the project’s area of influence must have an opportunity before the project design is finalized, to raise concerns about potential negative impacts, express desired outcomes and provide input on the project design. Project developers must document stakeholder dialogues and indicate if and how the project proposal was revised based on such input.5

Findings The PIR indicates that during this first period, the inclusion and involvement of the population in the implementation of the activities has been with its main beneficiary, the Bélgica Native Community and is divided in five dimensions:

1) Economic dimension, this aspect was verified through a meeting with the community, and document review. The auditors confirmed that the project trough Maderyja during this first period has been implementing what is described: signing of an association treaty, hiring a workforce, purchase of wood under the FSC certification, exclusivity agreement for the maintenance and better use of the road, and Maderyja who annualy hires workforce for forest management activities following the FSC standards, and are trained accordingly. The population and the community authorities indicated that the clauses of the contracts are meet and according to what is needed, the contracts are annually renewed, and theyb seek to include activities that benefit the development of the communtiy.

2) Social dimension, this was also verified with the members of the Bélgica Native Communty, and they confirmed the existence of two treaties related to the health improvement of the Bélgica community, between Maderyja and the Helath Center of Iñapari (CLAS, for its acronym in Spanish): to support the health program in this Native Community. A treaty between Maderacre and the Bélgica Native Community was also confirmed: for the payment of health staff working at the Health center of the Native Community, purchase of medicines to be given for free to those people who need them, the doctor responsible of the CLAS confirmed this. Furthermore, the native community mentioned the payment of a teacher for the community and the annual donation of school supplies, the donation of 2 computers for the forest management planning office of the Native Community. Finally, the economic support for the construction of an artesian well, which will allow the supply of drinking water to the three sectors of the Native Community. During the visit, the audit team observed the construction of the refered well, and verified all the previous findings in the treaty documents.

3) Cultural dimension, the members of the Bélgica native community confirmed that there is a macro contract with Maderacre which covers: the improvement

5 In cases where it is unclear whether a project will be implemented or not, it is acceptable to start with a preliminary community consultation, provided there are plans for a full engagement once the project is funded. (Such a cautious approach is warranted when there is evidence that raising community expectations prematurely could lead to frustration).


of the health, education and the forest management in the areas of the Native Community according to the FSC standard, since the Native Community has a FSC group certificate, they must respect the costumes, culture and consuetudinary rights of its territory, training events, as well as bcontrol and surveillance. These claims were verified through the review of the respective documentation, and agrees with what is previously described.

4) Organization dimension: this aspect is closely linked to obejctives of the REDD project; therefore, the community has been directly involved in several of the activities implemented by the project and which have been described along the report, and were verified through field inspections, meetings with the community, and documentation review. It focues in the following activities: socialization of the REDD project with the community, review and update of the Custody plan, placement of the control booth at the entrance of the Native Community and guarded by members of the Native Community, coordination for the placement of landmarks at adjacent concessions, improvement of the signalization, joined patrolling, and training on organizational and management documents of both companies. Gender Components: This aspect of the project has been limited to offering social support to women of the Bélgica Native Community, mostly during holidays. Even though it is true that female indigenous womon have been hired, it is only for domestic activities (cooks), according to interviews with the women from the community. The PIR indicates the hiring of a 50% female labor force working in the transformation plant of Maderacre, but with college and technical education, who occupied medium management positions, according to their education background. The project claims that the greater support to women will be given during the implementation of environmentally friendly projects. However, the gender component does not clarify if the beneficiaries are the women from the community or the female staff working for the Company, upon highlighting the percentage of professional women in the company. It does not define whether the component considers only women or seeks the inclusion of men. There is a lack of clarity in how the women empowerement activities for the woman befeniciary of the project will be implemented, and how it will help to improve: their participation, expression of ideas, and decision making. In order to gather all their concerns and ideas, and to consider them when preparing the activities described by the productive projects, and to adjuste to their female needs and interest, without excluding the men.


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3) Formalize a clear process for handling unresolved conflicts and grievances that arise during project

planning and implementation. The project design must include a process for hearing, responding to and resolving community grievances within a reasonable time period. This grievance process must be publicized to local stakeholders. Project management must attempt to resolve all reasonable grievances raised, and provide a written response to grievances within 30 days. Grievances and project responses must be documented.

Findings According to what the poeple of the Bélgica Native Community indicated, currently there have not been conflicts and/or complaints regarding Maderacre and Maderyja, which implies the application of the methods to resolve any concerns. However, in conformance with the standard, it was verified that both companies have protocols for conflict solving, the proceddures for the solution of conflicts are clearly visualized, in any case they do not contradict one another, on the contrary they correspond to each other. Booth documents were reviewed and validated through talks with the Bélgica Native Community, with workers from both companies, and checking the attendance lists found of talks about the topic, and that correspond to the first implementation period. The PIR clearly defines the flows each company has for the solving of conflicts.

In order to guarantee a climate of friendly relationships between the Bélgica Native Community and the project, an Advisor Committee has also been created for


Communitarian Relationships, which seeks the dialogue among all the parties involved and meets to collect their concerns and inputs in order to enhance their social relationships. Internally, that is Company Workers, a Labor Safety Committee has been created; and they periodically meet to make recommendations about improvement in the work. In both cases, their existence and functioning were verified through interviews with the members that constitute and direct it.


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CM2. Offsite Community Impacts - Required Concept The Project Proponents must quantify and mitigate likely negative social and economic offsite impacts; namely, the decreased social and economic wellbeing of communities or people living outside the project boundary, resulting from project activities. Indicators The Project Proponents must:

1) Identify potential negative offsite community impacts that the project is likely to cause.

Findings The negative impacts offsite of the project area are clearly described in the PDD. Overall, the potential negative social impacts would be: a) higher demand for social assistance due to the increase of immigration of the population upon learning of the existence of the project; b) use of labor force from other regions encourages outsiders moving and settling along the interoceanic highway and roads; c) arrival of foreing people due to the beginning of the project activites, with cultural practices and expressions different from the local ones; and, d) greater demand of supervision, control and coordination actions from the public institutions which may increase the work load and the overflow of the existing technical capacity. At the end of the first implementation period of the project, no new and/or potential negative impacts offsite from the project area have been identified.


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2) Describe how the project plans to mitigate these negative offsite social and economic impacts.

Findings The mitigation actions of the negative offsite impacts implemented during this first period of the project are described in the PIR and are:

1. Programs for attracking local work force, qualified as well as non-qualified. It was verified that both companies have a training plan on subjects related to forest management under the FSC standard. The same training activities have been implemented for the training of their workers and also included the Bélgica Native Community; such activities were verified through interviews with workers, indigenous people, as well as documentation review inclduing lists of attendance, and reports on the talks received.

2. Support to business initiatives for the incorporation of immigrant families as labor force, work and socially. In the first period of the project, no activities related to this aspect have not been implemented. The project proposed a program named “Environmentally Friendly Projects”, whose implementation was to begin in May 2014, but at the time of the audit it had not been implemented. Other evidence presented by statistics reviewed by the auditors, the increment in the hiring of migrant labor force was observed, which is mitigating the negative impacts related to this activity.

3. Signal placement programs and concessions boundary. It was verified through document review, field inspection, photographs, interviews and meetings with the community that the project has mitigated this impact by signing boundary


acts with its neighbors. Moreover, it has signed treaties with the Bélgica Native Community for jointly patrolling the borders, and the setting of a control booth in the road that crosses the access zone to the Native Community and 24 hour surveillance by the inhabitants, continuous maintenance of the access channels to the concessions, and the placement of land marks at the trig points of the concessions.

4. Sign placement in the roads and education programs for the population about the traffic on the highway. Attendance lists were reviewed of the workers and truck contractors that attended the talk about the subject. Further, during the interview with the first group, they demonstrated knowledge on the subject. Despite the fact that the PIR indicates that traffic signs were placed, during the field inspection none were seen regarding the road safety along all access road to the concession visited.

5. Initiation in the principles of interculturality and respect to the populations for workers, contractors and general population regarding the protocols of the community. The existence of conduct codes was verified, which includes the need to respect the culture and costumes of the Belgica Native Community, as well as the access prohibition to go ino the center of the native community village. This aspect is included into the training plan of both companies; and, documented evidence was found of its socialization with workers, contractors and the Bélgica Native Community itself, during the consultation with workers and people of the community demonstrated awareness about the content of the conduct code.

6. Development of modern and clear management tools that help with the input of information and with the relationships with public institutions. As described in indicator G.8.2, it was verified through interviews and review of the PIR and supplementary documentation that the project is disseminating its information through several communication channels: partitipation of students in training and researcher talks; meetings with the community; training to workers of the companies via workshops, internal talks, etc.; participation with talks in workshops and events, such as the Villaje Dakar 2013; video promotion, press notes and TV interviews, and through the posting of documents in several web links (interclima. minam.gob.pe; rpp.com.pe; openei.org; www.youtube.com; s3.amazonaws.com; www.greenoxx.com). Registering compliance with the indicator was verified by the auditors.

7. Support programs to local institutions, particularly respect to the training of the staff about the project and the approaches supporting it, as well as forest management. It was verified through document review that the project has disseminated its acitivities in the REDD table of Madre de Dios, of which it has been a member since 2012 according to the invitation emails and the registration form of that working group. According to what was expressed by the company’s workers and consultation made in the locality of Iñapari, those interviewed indicated that the companies hold meetings at the begining of the harvest period to inform about all the activities to be implemented during the year and about the REDD project.


CAR/OBS N/A

3) Evaluate likely unmitigated negative offsite social and economic impacts against the social and

economic benefits of the project within the project boundaries. Justify and demonstrate that the net social and economic effect of the project is positive.

Findings The project indicated in the PDD that during its implementation it would reach a total score of 19 points in positive impacts, obtaining 9 points for the social component and 10 for the socioeconomic impact. However, when the quantification was made it obtained a result of 13 (6 for the social component and 7 for the socioeconomic) instead of 19. The project indicates that the score obtained without the REDD project would be -17; therefore, even if

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it did not obtain the value desired, it obtained a positive impact value and close to the estimated value, resulting from most of the activities indicated in the PDD and implemented during this first period. It also justifies that if this score is below the estimated one, it is due to fact that the development project have not been implemented yet, due to the lack of sale of Carbon credits of the project. They indicated that this first period has focused in the

development and implementation of the project according to the VCS standards, since with verification under the VCS there would be funds from the sale of VCUs, and recently made its first commercialization in 2012. However, they were implementing in the field social and environmental actions according to CCB. Respect to the project implementation, they make a quantification related with the intensity of the positive impacts on the community, in the social and socioeconomic components, described in the table 25 of the PIR. For the social component (access to information, strenghtening of the social capital, productive projects, institutional strenghtening, research opportunities, inversion and extension in basic services, overestimation of the social support and assistance, increment of the immigration, increment of the car flow, and the greater demand of coordination and supervision actions with the institutions). A total of 10 positive impacts were identified, with intensity scores that range between 0, -1, -2 , 2 and 3 points. In the socioeconomic component (increment in the generation of job opportunities, dynamism of the local and regional economy, strenghtening of alternative economic activities, and greater training opportunities) there are a total of 04 impacts identified, with scores that range from 0, 1, 3, and 3 points. The impacts that have score 0 are those that have not been quantified because are not being implemented due to the reasons indicated in the previous parragraph. The reasons that prevented the project from achieving the maximum score from both components are reasonable; however, the project has not included in the PIR the methodology utilized for determining the quantification of the social and socioeconomic positive impacts, and explaining the scope of the valuations flowing from -1 until 3, limiting an appropriate comprehension of the results obtained in the impact intensity.


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CM3. Community Impact Monitoring - Required Concept The Project Proponents must have an initial monitoring plan to quantify and document changes in social and economic wellbeing resulting from the project activities (within and outside the project boundaries). The monitoring plan should indicate which measurements will likely be taken and which sampling strategy will be used to determine how the project affects social and economic wellbeing. Since developing a full community-monitoring plan can be costly, it is accepted that some of the plan details may not be fully defined at the design stage, when projects are being evaluated by the CCB Standards. This will especially be true for small-scale projects. Indicators The Project Proponents must:

1) Have an initial plan for how they will select community variables to be monitored, and the frequency of

monitoring. Potential variables include income, health, roads, schools, food security, education and inequality. Community variables at risk of being negatively impacted by project activities should be monitored.

Findings Table N°19 of the PIR shows a summary of the indicators monitoried by the communities, which are related to the description in the matrixes of the Social


Monitoring program of the concessions (graph 64) and the matrix of other indicators of the Social Monitoring Program, of the activities depending on the funds obtained from the execution of the REDD project (graph 65) included in the the PDD. In both cases, the matrixes include: indicator, verification mean, frequency and the responsable area, group of interest, policies followed and the responsible parties for the administration of the information. The summary chart of the PIR with the impact indicators proposed by the project and as monitored during the 2009 - 2013 period, quantify the changes in the social welfare and economics resulting from the project activities. A total of 28 indicators are being monitored in this period, and are divided into two groups: a) internal: refer to the workers and the Bélgica Native Community and b) external: refer to the producers, suppliers, and public and private institutions. These indicators express results in percentages and whole numbers covering subjects such as: economic incomes, health, trainings, conflicts, treaties, researches, beneficiaries of the community support program, meetings held, labor opportunities among others; in agreement with the project activities. According to the level of aproach and interaction with the subjects and actors involved, both companies are responsable for following up on these indicators. However, the table of community indicators presents weaknesses because it does not present an appropriate analysis, that is: it is missing details of when, how, and who has validated the indicators; in order to demonstrate the methodology used for their quantificaiton. Nor does it explain the meaning of the resulting quantities per each period of time, their relevance in the social and economic welfare, and the type of impact. In the PDD the indicators are classified in: effect indicators (annual measurement) and Process indicators (fortnightly or monthly measurement), in the PIR this is not specified and it is difficult to interpretate in order to be verified.


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CM4. Capacity Building - 1 Point, Optional Concept Projects that include a significant capacity-building (training, skill building, etc) component are more likely to sustain the positive outcomes generated by the project and have them replicated elsewhere. The Project Proponents must include a plan to provide orientation and training for the project’s employees and relevant community members with an eye to building locally relevant skills and knowledge over time. Indicators The Project Proponents must show that capacity building is:

1) Structured to accommodate the needs of communities, not only of the project;

Findings The PIR does not describe the implementation process of the indicator CM4.1. However, during the interviews conducted with technical team of the Madre de Dios Amazon REDD project, they indicated that the project has structured its activities with the purpose of creating and strengthening the capabilities of each group of interest involved considering their local needs. In order to verify this claim the auditors reviewed the activities planned in the project PDD, and found agreement with what is described in the activities of the Social Responsibility Plan of the Bélgica Native Community. During the meetings held with the members of the Native Community, the community expressed their essential needs to both companies which are included in the treaties


ratified by Maderyja and Maderacre; and were reviewed in detailed by the audit team, and the activities of the REDD project have also been included into clauses.


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2) Targeted to a wide range of groups, not just elites;

Findings In this first period, the REDD project was focused on the generation of capabilities through training courses to its staff and members of the Bélgica Native Community (who also work for both companies), covering different subjects: Chain of Custody procedure, Forest Inventory, Reduced impact logging, FSC certification, Industrial safety and First aid, Identification and Protection of High Conservation Value (HCV), Monitoring of Wildlife Fauna, among others. According to what was described during the interviews with workers and meeting with members of the Bélgica Native Community, it was confirmed that the companies continuously implement these trainings, and this was verified by the audit team through the review of reports and lists of attendance to the trainings held by both companies. The Bélgica Native Community has received wide support from the project, so it receives the capabilities needed for managing its forest, and for adequate implementation of FSC certification which has been annually maintained. They have also addressed their training to other groups such as the school of Iñapari, focused on environmental subjects; this was verified through the attendance list to an environmental awareness lecture conducted in 2012.


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3) Targeted to women to increase their participation; and

Findings Ninguno.



4) Aimed to increase community participation in project implementation.

Findings The PIR does not describe the procedures and/or activities implemented to increase the community participation described in indicator CM4.4 during this first period of the project.

However, during the meetings held with the technical team of the Madre de Dios Amazon REDD project it was expressed that from the begining, the community participation in the implementation of the project is in several forms; for example: the companies have the policy that the workers, either permanent or temporary, must preferably belong to the communities and neighboring localities. Further, they give preference to local suppliers for the acquisition of products and articles required by both companies. Also, the institutions are kept informed about the status of the activities through their participation in meetings. The project – powered by Maderacre- has created an Advisory Committe who meets annualy. This committe provides the transparency needed for the implementation of the activities, and take their opinions and concerns to the discussion table, and present their opinions about social policies, programs, and project plans. To guarantee the community participation, the committee is integrated by the following institutions, companies, neighborhoods, and the communty: Municipality of the Province of Tahuamanu – Iñapari, neighborhood La Colonia, Middle School of Iñapari, Bélgica Native Community, Maderacre shareholders, and the social area of Maderacre.


Maderyja has a Technical Committee for the Community Relationships, within its community programs, for the generation of technical capabilities to young people, both men as well as women. All the previously mentioned findings were verified through the documentation review (policies, plans, manuals, meetings minutes, convocatories, statistics, payment receipts, etc.), and through consultation with stakeholders, who indicated their participation in the Advisor Committee and the participation of representatives from both companies to the meetings called by the institutions and the preference in the acquisition of products and articles from suppliers in the zone. During these meetings held with members of the Bélgica Native Community and workers of the project, they mentioned the preference in the hiring of local labor force. Despite these findings, it was not possible to gather additional information about the committe for the Community Relationship of Maderyja, nor was this found in the consultation with stakeholders, or in the documented evidence submitted by Maderyja.


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CM5. Best Practices in Community Involvement - 1 Point, Optional Concept Projects that use best practices for community involvement are more likely to benefit communities. Best practices include: respect for local customs, local stakeholder employment, worker rights and worker safety. Indicators Project proponents must:

1) Demonstrate that the project was developed with a strong knowledge of local customs and that, where relevant, project activities are compatible with local customs.

Findings During the meeting with workers of the project located in the camp of the area under forest management, those interviewed indicated they understand and respect the culture of the Bélgica native community, that they received training about the conduct code with local people, they explained their respect to the rights and traditions of the local communities.

Project managers have demonstrated a great understanding of the local customs, as well as the commitment of the companies with the Native Community. Good relationship and knowledge from both companies was verified through meetings, in which emphasis was given to the fact that the REDD project and the activities of the community component were designed and implemented according to the local customs and practices, details of this aspect are in this section (CM4.1).

During the community meeting, the people of the Bélgica Native Community said that they have good relationship with both companies based on the respect for their customs and traditions, being this an important factor for the establishent of alliances between them and Maderyja and Maderacre.


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2) Show that local stakeholders will fill all employment positions (including management) if the job requirements are met. Project proponents must explain how stakeholders will be selected for positions and where relevant, must indicate how traditionally underrepresented stakeholders and women, will be given a fair chance to fill positions for which they can be trained.

Findings The professionals who are staff of the Madre de Dios Amazon REDD project and linked


to the Certified forest management, have been called in according to their academic training and experience required for each job position. Professionals have been hired for the following positions: general manager, commercial manager, forest manager, social responsible, forest operations manager. The professionals come from the City of Lima to fill in the management positions; and the technical positions are filled by staff coming from Iñapari and Ucayali; some forest operation workers come from San Martín and Ucayali, the rest of the workers come from Maldonado Port, Iñapari and the Bélgica Native Community.

However, during the first period, the project has not identified and implemented activities for the women of the Bélgica Native Community, with the purpose of generating technical capabilities for covering the forest management positions which require some level of specialization.


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3) Show that the project will inform workers about their rights, and that the project complies with international rules on worker rights.

Findings Since Maderacre and Maderyja have a FSC forest management certification, they pay special care to the subject related to workers’ labor rights, at a national and international level: this is why both companies comply with social and labor laws, regulations, and the personal welfare of their staff, and good working conditions. It was verified through documentation review that they keep up with the payment of wages, social security fees, Labor Ministry sealed contracts, registration and payment of the National Retirement Fund, gratuities, settlement compensation. Moreover, both companies have agreements with the Health Center of Iñapari (CLAS) to expedite the attention of their workers in case of an emergency, because the closest social security hospital is in the locality of Iberia, one hour away from the downtown of Iñapari, as was verified with the doctor in charge, CLAS- Iñapari

Workers indicated that they receive information through periodic talks about their labor rights and conditions, law that protect them at national and international level, and about the amount deduced according to the law and show in their payment receipt since many of them did not understand, specially when they begin to work. Besides, they indicated that before starting to work they sign the contract, and once it is send to the Ministry of Labor they receive a copy of the sealed labor contracts; each month they get they payment receipt, accordingly the gratuities and when the specific time frame agreed with the employes is up, they receive a compenstion settlement for their services.


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4) Comprehensively assess situations and occupations that pose a substantial risk to worker safety. A plan must be in place to inform workers of risks and to explain how to minimize such risks. Where worker safety cannot be guaranteed, Project Proponents must show how the risks will be minimized using best work practices.

Findings According to the Peruvian normative frame about industrial safety and the FSC standard, both companies involved with the REDD project have safety regulations at work, as well as Health, Industrial Safety and Environment Guides for Contractors. According to the PIR, the workers and contractors receive trainings at their respective camps regarding safety in forest operations and on the use of protection equipment; workers confirmed receiving permanent talks about these issued and it was further verified with the attendance lists to such trainings and reports on the matter.

Writen procedures and manuals about the topics explain the potential risks of the forest operations and also explain that are minimized by applying reduced impact logging techniques. Risk mitigation is not only applied for the environment, but also with


respect to the health and welbeing of the workers. The protocols in case of accident are also part of the workers’ knowlegde, according to the workers, and are available at the camps and in the office of both companies.

Workers indicated that they must wear personal protection equipment during the forest operations according to the area where they work and while at the forest. In case of non-compliance, they are sanctioned according to their regulations. In order to control the use of PPE, forms established by the companies are used and there are hand-in forms for the equipment and replacement forms for when the equipement is deficient or worn by the continuous use. All this documentation was made available to the auditors and was reviewed to verify its proper implementation.


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B1. Net Positive Biodiversity Impacts - Required Concept The project must generate net positive impacts on biodiversity within the project boundaries and within the project lifetime, measured against the baseline conditions. Projects should have no negative effects on species included in the IUCN Red List of threatened species (which encompasses endangered and vulnerable species) or species on a nationally recognized list (where applicable). Invasive species must not be planted by the project. Genetically Modified Organisms (GMOs), as a relatively new form of technology, raise a host of ethical, scientific and socio-economic issues. Some GMO attributes may result in invasive genes or species. In the future, certain GMOs may be proven safe. However, given the currently unresolved issues surrounding GMOs, projects cannot use genetically modified organisms to generate carbon credits. Indicators The Project Proponents must:

1) Use appropriate methodologies (e.g., key species habitat analysis, connectivity analysis) to estimate changes in biodiversity as a result of the project. This estimate must be based on clearly defined and defendable assumptions. The “with project” scenario should then be compared with the baseline “without project” biodiversity scenario completed in G2. The difference (i.e., the net biodiversity benefit) must be positive.

Findings Section 2.11 of PIR, details the specific actions implemented to promote positive net benefits in biodiversity. The activities are: patrolling in areas potentially sensitive to invasions or other type of illegal actions, conservation and protection of sites with special meaning (high conservation attributes according to FSC), silvicultural practices appropriate for the harvesting and conservation of specific flora and fauna species (pacales or bamboo).

The PIR also identifies the actions implemented for preserving the flora, fauna, and conservation areas. Among the activities developed are: population growth assessment, status of the natural regeneration, monitoring of sites or species considered rare or endangered; control and surveillance. Also, internal procedures and policies have been implemented, such as prohibition of hunting, fishing, and sign placement where applicable.

In general, after the implementation of these actions, no significant reduction of the biodiversity in the project area has been reported. During the field visit, the audit team could verify that several of the mentioned activities are being implemented, sometimes with the two concessions working together and some others, one of them with the communities or nearby actors.



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2) Describe possible adverse effects of non-native species on the area’s environment, including impacts

on native species and disease introduction or facilitation. If these impacts have a substantial bearing on biodiversity or other environmental outcomes, the Project Proponents must justify the necessity of using non-native species over native species.

Findings The REDD project does not consider the use of non-native species; instead, the project seeks to reduce the deforestation and degration of natural forests.


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3) Identify all IUCN Red List threatened species and species deemed threatened on nationally recognized

lists that may be found within the project boundary. Project proponents must document how project activities will not be detrimental in any way to these species.

Findings It is common practice that the concessions identify, in the technical documents and in the field, rare or threatened species based on red lists, like UICN, independent from its category. For example, because mahogany and cedar are two flora species included in Appendix II and Appendix III respectively, they are handled with due precautions. The same applies to the fauna species inside the limits of the project. Areas of special conservation value have been identified and specific monitoring techniques are utilized to monitor such areas.


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4) Identify all species to be used by the project and show that no known invasive species will be used.

Findings The REDD project does not consider the use of invasive or non invasice species. What it looks for is to implement activites that reduce the deforestation and degradation natural forest managed.


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5) Guarantee that no genetically modified organisms will be used to generate carbon credits.

Findings Genetically modified organisms are not considered by the REDD project.


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B2. Offsite Biodiversity Impacts - Required Concept The Project Proponents must quantify and mitigate likely negative offsite biodiversity impacts; namely, decreased biodiversity outside the project boundary resulting from project activities. Indicators The Project Proponents must:

1) Identify potential negative offsite biodiversity impacts that the project is likely to cause.

Findings Following what is described in the PD with respect to possible negative effects which may occurr with the implementation of the REDD project, during the monitoring period mitigation measures were established (or safeguards), and are explained in table 20 of the PIR. A quick comparison between PD and PIR confirms agreement between both documents. For example, PD describes as risk the fact that the flora population included in CITES could become extinct due to the forest harvesting in the


concessions, or to illegal activities offsite the project.

For this matter, in 2010 and also during the period of 2011-2013 the REDD project presented the results from its monitoring of the percentage of mahogany and cedar seedling and remaining tress. The conclussion presented is that it has increased the presence of individuals and the amount of natural regeneration. Due to obvious reasons, the audit team could not verify these results in the field, however, through interviews they could verify that the forest management is comprehensively done.

Another example, pest reduction and the reduction in the lost and degradation of habitats was evident during both monitoring periods. Comparative data with the results were submitted.


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2) Describe how the project plans to mitigate these negative offsite biodiversity impacts.

Findings The potential negative impacts in the project zone (leakage belt) were identified and validated in the PD. During the monitoring period, an education campaign through conferences, dissemination of audiovisual material, and awareness talks were implemented.

The audit team confirmed the participation of local actors in the events.


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3) Evaluate likely unmitigated negative offsite biodiversity impacts against the biodiversity benefits of the

project within the project boundaries. Justify and demonstrate that the net effect of the project on biodiversity is positive.

Findings A series of mitigation activities was implemented for the possible negative impacts resulting from the REDD project, previously identified in the PD. According to the information in the PIR, such negative effects did not occur during the monitoring period.


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B3. Biodiversity Impact Monitoring - Required Concept The Project Proponents must have an initial monitoring plan to quantify and document the changes in biodiversity resulting from the project activities (within and outside the project boundaries). The monitoring plan should state which measurements will likely be taken and which sampling strategy used. Since developing a full biodiversity-monitoring plan can be costly, it is accepted that some of the plan details may not be fully defined at the design stage, when projects are being evaluated by the CCB Standards. This will especially be true for small-scale projects. Indicators The Project Proponents must:

1) Have an initial plan for how they will select biodiversity variables to be monitored, and the frequency of monitoring. Potential variables include species abundance and diversity, landscape connectivity, forest fragmentation, habitat area and diversity, etc. Biodiversity variables at risk of being negatively impacted by project activities should be monitored.

Findings The PIR identifies the following indicators, which will be frequently measured. For the CCBA verification period, the 2010 and 2011-2013 period are reported:

a. Percentage of mahogany seedlings and trees remaining post-harvesting


b. Percentage of cedar seedlings and trees remaining post-harvesting

c. Percentage of hard species seedlings and trees remaining post-harvesting

d. Percentage of degraded areas caused by forest activities in annual operative plan

e. Number of hunting events registered

f. Percentage of sites of importance for the wildlife fauna affected per year

g. Population density of endangered species

h. Mortality

i. Number of nesting sites affected by the harvesting

The audit team reviewed the information (activities and results) submitted and cross-referenced with the technical criteria of the staff interviewed.


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B4. Native Species Use - 1 Point, Optional Concept In most cases, species that are native to a region will have a higher biodiversity benefit than non-native species. In other cases, non-native species can be more effective than native species for rehabilitating degraded areas or providing fast growing biomass, timber, fruits and other beneficial products. For instance a project may need to use non-native species on severely degraded land to achieve ecological restoration before native species can be reintroduced. Indicators The Project Proponents must:

Show that the project will only use species that are native to the region. Or

Justify that any non-native species used by the project are superior to native species for generating concrete biodiversity benefits (e.g., for rehabilitating degraded areas unlikely to support natives, or for producing fuel wood that reduces logging pressure on intact ecosystems)

Findings The REDD project is based on the management of natural populations, and not in the use of exotic invasive or non-invasive species.


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B5. Water and Soil Resource Enhancement - 1 Point, Optional Concept Climate change and other factors may stress and degrade water and soil resources at the project site over time. Projects should enhance the quality and quantity of water and soil resources.

Indicators The Project Proponents must:

1) Identify project activities that are likely to enhance water and soil resources

Findings No specific evidence regarding this optional subject was submitted.



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2) Credibly demonstrate that these activities are likely to improve water and soil resource compared to the

baseline, using justifiable assumptions about cause and effect, and relevant studies.

Findings No specific evidence regarding this optional subject was submitted.


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Appendix C: STAKEHOLDER LISTS List of Project Proponent Staff Consulted

Name Title Contact Type of Participation

Nelson Kroll Kohel

Forest Manager - Interview and meeting

Jose Luis Canchaya

Commercial Manager - Interview and meeting

Natally Lombardy Flores

Social responsible - Interview and meeting

Ana Maria Quijada

Accountant group Wong - Maderacre

- Interview and meeting

Milagros jauregui Chain of custody-forest - Interview and meeting

Tatiana Lapeyre

Responsible of measurement, estimation of Carbon credits CCB, VCS (external consultant)


Lizardo Fachin Malaverry

Preparation, procession of satellite images, GIS (external consultant)


Samuel Parra

Responsible of the assessment and monitoring (generates information for the estimationof carbon credits). Maderacre,S.A.C


Maritza Ureta Social Responsible Maderyja S.A.C


David Ovalle, Maderyja ,

Forest Responsible Maderyja S.A.C


Erasmo Wong Kongfook

Administrative Manager Maderacre S.A.C


List of other Stakeholders Consulted

Name Organization Type of

Participation

Renan Gallo Municipality of Province of Tahuamanu Interview

José Pineda Calvo Advisor Committee – Advisor Bélgica Native Community

Interview


Julia Manuela Ochoa Kea “Elena Bertha” Elementary school Interview

Noelia Lopez Claudino Villa Primavera Association Interview

Isaac Quintanilla Government of Tahuamanu and Villa Primavera Association

Interview

Indira Llerena Torres Health Center of Iñapari Interview

Jhon Lopez Añez Bélgica Native Community Meeting

Ilson Lopez Añez Bélgica Native Community Meeting

Ricardo Lopez Cuchiterini Bélgica Native Community Meeting

Nilo Lopez Cuchiterini Bélgica Native Community Meeting

Luis Lopez Chiapama Bélgica Native Community Meeting

Francisco Lopez Pereira Bélgica Native Community Meeting

Antonio Lopez Cuchiterini Bélgica Native Community Meeting

Leda Lopez da Silva Bélgica Native Community Meeting

Maricelia Lopez Flores Bélgica Native Community Meeting

Lucidea Aspajo Batista Bélgica Native Community Meeting

Lucia Lopez Cuchiterini Bélgica Native Community Meeting

Maricelia Lopez Flores Bélgica Native Community Meeting

Rosineidi Lopez Pereira Bélgica Native Community Meeting

Ubanosia Batista da Silva Bélgica Native Community Meeting

Lenisia Gonzales Añez Bélgica Native Community Meeting

Griselda Pererira do Santo Bélgica Native Community Meeting

Marildo Lopez Lopez Bélgica Native Community Meeting

Rosa Lopez Lopez Bélgica Native Community Meeting

Adela Añez Lopez Bélgica Native Community Meeting

Valeria Lopez Lopez Bélgica Native Community Meeting

Melisa Aspajo Gonzales Bélgica Native Community Meeting

Desia Silva da Silva Bélgica Native Community Meeting

Marineti Lopez Lopez Bélgica Native Community Meeting

Antonio Lopez Cuchiterini Bélgica Native Community Meeting

Juan Carlos Aspajo Lopez Community Meeting

William Araoz Quispe Forest and Wildlife Fauna Direction Tahuamanu - Iberia

Interview

Verification Assesment Report for: Madre de Dios Amazon ... · PDF fileCCBA Validation or...

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