ANNEX AQ MICRO-SCALE VALIDATION REPORT TEMPLATE

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1 ANNEX AQ MICRO-SCALE VALIDATION REPORT TEMPLATE CONTENTS A. Brief Project Description B. Objective Observers opinion C. Details about the site-visit 1. Team on site 2. Period of site-visit 3. People interviewed 4. Means for interviews D. Stakeholder Consultation Process 1. Evaluation of the Local Stakeholder Consultation Process 2. Evaluation of the Stakeholder Feedback Round 3. Evaluation of the Continuous input / grievance mechanism implemented E. Evaluation of the risks potentially associated with the project activity 1. Do no harm assessment 2. Evaluation of the proposed mitigation measures F. Evaluation of sustainable development related issues potentially associated with the project activity 1. Environmental issues 2. Social and economic issues G. Sustainable Development Eligibility criteria for inclusion of a VPA to the PoA

2 SECTION A. BRIEF PROJECT DESCRIPTION Please indicate the scheme applicable to the micro-scale activity: 1. Project activity is applying under the micro-scale scheme 2. Project activity is applying under the micro-programme scheme Title of the Activity or VPA: Soneva in Myanmar VPA No. 005 (GS 5661) Title of the PoA: GS 1729 Myanmar Stoves Campaign Gold Standard Micro-scale PoA Myanmar Stoves Campaign aims to ensure the use of carbon finance to support the distribution and maintenance of domestic and non-domestic Fuel Efficient Stoves (FES) through local implementation partner(s) (IP) in the Republic of the Union of Myanmar. The Myanmar Stoves Campaign is a programme of the Soneva Foundation and the first Gold Standard certified carbon project in Myanmar. This project activity is implemented by three actors, which are the Soneva Foundation, Mercy Corps and Local Vendors in each of the targeted project villages under this VPA. Myanmar Stoves Campaign was started in September 2013 and currently, the project covers close to 400 villages in Pyawbwe Township in Mandalay Region in central part of Myanmar. The co-ordinated action by the three actors in this project has been successful in distributing over 13,000 fuel efficient stoves which have improved the lives of more than 60,000 people. The stoves distributed are the Envirofit SuperSaver GL (Earlier known as M-5000). Each household received at least one stove. There are two methods of payments which are lump sum (15000 MMK for lump sum payment) and instalment (17000 MMK for five (5) months instalment) payments. Instalment is an excellent method for some families who have financial hardship and couldn t afford lump sum payment. Selected FES model for this VPA: Envirofit M5000 Envirofit SuperSaver GL (Earlier known as M-5000), launched in 2011, is the successor model of the G-3300 and is produced in China, India and Kenya Product weight 4.2kg Size (in cm): 28x26.5x26.5 CO2 emission reduction compared to three stone fire of 66% Wood use reduction compared to three stone fire of 66% Thermal efficiency of 29.7% Manufacturer guarantee of 2 years on outside and 5 years on the inside parts Estimated product life of 5 years Source: M5000 (SuperSaver GL) Performance Sheet (Link) and manufacturer website (Link)

3 Envirofit SuperSaver GL had been selected as suitable product for local users based on the inputs from local communities and various stakeholders after they were consulted through demonstration and filed tests. This followed with the stoves being distributed to the households in targeted villages. This intervention has helped the local households to smoothly transition to a new FES stove from being dependent on the old three stone fires. The user experience and benefits has been very positive and encouraging towards this modern technology. In addition to this, this project has successfully demonstrated the contribution in catalysing the socio-economic development of these communities by having a positive impact on a range of indicators. There is an increasing awareness among the users in targeted villages and the nearby ones on the immediate and long term environmental benefits coming from this project, which is helping in higher rates of adoption, all of which is helping the Myanmar Stoves Campaign to positively impact the lives of the rural under-served in a sustainable and environmentally friendly way. End user with new fuel-efficient stove (FES)

4 SECTION B. OBJECTIVE OBSERVERS OPINION Self-Assessment Opinion The objectives of Myanmar Stoves Campaign and its activities are synergistic with the Gold Standard Foundation principles. There is no human right abuse, the project has a significant positive impact on the socio-economic development of the stove users and the environment. The project activity is also in line with the government s efforts and policies towards environmental conservation. The project has managed to gather support and appreciation from all the local stakeholders, from stove users, local vendors, village elders and the local government/administration. During this self-assessment, it was clear that the users are convinced about the benefits coming out of the stoves, most important ones being the reduction in indoor air pollution and savings in time and money from collecting/buying firewood. There is also a visible increase in productivity of the stove users., and creation of local jobs and increased environmental awareness/consciousness SECTION C. DETAILS ABOUT THE SITE-VISIT i. Individual or team on site 1) Bhushan Trivedi Bhushan Trivedi is a consultant in the field of social development and social entrepreneurship. He has an extensive experience of working in the development sector in India and Myanmar, specifically on energy access initiatives. Apart from being a consultant to the Soneva Foundation on Myanmar Stoves Campaign for four years, he also led a solar PV micro-grid project in rural Myanmar. Bhushan has earned his bachelor s degree in Mechanical Engineering from Pune University, India. A Masters in Environmental Assessment & Management from Salford Univerity, Manchester, UK, and a Diploma in Social Entrepreneurship from NMIMS, Mumbai. 2) Phyo Phyo Wai Phyo is Senior Program Manager managing Energy Social Venture Program for Mercy Corps (Myanmar). She has extensive experiences in Development sectors, especially in Resilience sector; Disaster Risk Reduction, Climate Change and Civil Society Strengthening Sector. Phyo received a Bachelor Degree, majoring in Chemistry from University of Distance Education, Yangon, Myanmar. She also received Master in Development Studies (M.Dev.S) from the Institute of Economics, Yangon and Master in Development Management (MDM) from the Asian Institute of Management (AIM), Philippine. She has also obtained the Post

5 Graduate Diploma in Social Work from Yangon Art & Science University, Myanmar and Diploma in Teaching English for Speaker of Other Language from London Teacher Training College, UK. 3) Zin Mar Oo Zin Mar Oo is a Field Office Coordinator working for Mercy Corps. She has an extensive experience of working in the Emergency Response and Recovery and in Development Sectors in Delta (Ayeyarwaddy Division) and Dry Zone (Middle Myanmar); specifically, on Livelihood and Energy Assess initiatives for over nine years in Mercy Corps Myanmar. Zin Mar Oo has earned her Bachelor s Degree in Geography from Pathein University, Myanmar. ii. Period of site-visit The Site Visit was conducted on 27 th & 28 th July The team had informed the participants in advance and conducted the meetings in Thar Ga Ya, Thar Yar Kone, and Tha Man Kyar villages. iii. People interviewed A Total of 65 people were interviewed from Thar Ga Ya, Thar Yar Kone, and Tha Man Kyar villages, The attendees included stove users, stove vendors, and the village elders/administrators. List of Participants: From Thar Ga Ya Village Sr. No. Name Position 1 Daw Khin Myint Kyi Stove User 2 Daw HHtay Hlaing Stove User 3 Daw Nyunt Kyi Stove User 4 Daw Mar Iwin Stove User 5 Daw Mar Yi Stove User 6 Daw Nyein Ei Stove User 7 Daw Moe Htay Stove User 8 Daw Khin Mar Moe Stove User 9 Daw Yoe Stove User 10 Daw Soe Moe Htay Stove User 11 Daw Mar Aye Stove User 12 Daw Khin Wai Stove User 13 Daw Win Htay Stove User 14 U Kyaw Lay Stove User 15 Daw Mae Lone Stove User 16 Daw Yi Sint Stove User

6 17 Daw Win Kyi Stove User 18 Daw Aye Maw Stove User 19 U Pay Stove User 20 Daw Khin Than Stove User 21 U Kan Tun Stove User 22 U Shwe Hmone Stove User 23 U Tin Myint Stove User 24 Daw Myint Khin Stove User 25 Daw Ei Han Thar Stove Vendor From Thar Yone Kone Village Sr. No. Name Position 1 U Mg Myint Stove User 2 U Mg Ko Stove User 3 U Nyo Stove User 4 U Chit Ngwe Stove User 5 Daw Kyin Than Stove User 6 Daw Hla Yin Aye Stove User 7 Daw Thwe Stove User 8 Daw Nu Nu Nge Stove User 9 Daw Htay Stove User 10 Daw Myint Myint Oo Stove User 11 Daw Mya Hnin Stove User 12 Daw Myint Myint Htay Stove User 13 Daw Tin Mar Htay Stove User 14 Daw Sandar Stove User 15 Daw Than Stove User 16 Daw Khin Lone Stove User 17 Daw Myint Yi Stove User 18 U Aung Kyaing Stove User 19 Daw Hlaing Hlaing Moe Stove User 20 Daw Marlar Oo Stove User 21 U Phoe Ni Stove User 22 U San Phay Kyi Stove User 23 Daw Zar Kyi Aye Stove Vendor From Tha Man Kyar Village Sr. No. Name Position 1 U Nyunt Mg Stove User 2 U Ye Win Stove User 3 U Chit Khin Stove User 4 U Pyay Aye Stove User 5 Daw Pu Fyi Stove User 6 Daw Soe Moe Htwe Stove User 7 Daw Khin Nyo Stove User 8 Daw Than Htay Stove User 9 Daw Aye Myint Stove User

7 10 Daw Win Mar Stove User 11 Daw Tin Hla Stove User 12 Daw Myint Myint San Stove User 13 U Tin Myint Stove User 14 U KYauk Thae Stove User 15 U Kyi Win Stove User 16 Daw Khin Htay Stove Vendor 17 U Han Myo Tun Stove User Focus group discussions at Thar Ga Ya village

8 Focus group discussion at Thar Yar Kone village Focus group discussion at Tha Man Kyar village

9 Local vendor interview at Tha Man Kyar village Local vendor interview at Thar Ga Ya village

10 Local vendor interview at Thar Yar Kone village iv. Means for interviews The primary method used is Focus Group discussions. Groups were made in each of the villages and a healthy qualitative discussion was facilitated by the team on each of the indicators used in the sustainability monitoring plan. One on one interviews were organized with the stove vendor. The flow set out for these meetings was: 1) Welcome and Thank you note for the attendees. 2) Introduction of Team + Objectives of this Meeting, & Methodology of Focus Group Discussions + Local Vendor Interviews. 3) Discussions begin on the following indicators: i) Air Quality ii) Livelihood of the Poor iii) Access to Affordable & Clean Energy Services iv) Human & Institutional Capacity v) Quantitative Employment & Income Generation 4) Evaluation of Grievance Mechanism 5) Conclusion 6) Vote of Thanks

11 SECTION D. STAKEHOLDER CONSULTATION PROCESS D. 1. Evaluation of the Local Stakeholder Consultation Process Two Local stakeholder consultations (LSC) were carried out successfully in Pyawbwe and Bawdigone village. In Pyawbwe, local government authority officials and departments heads, ward authorities, local businessmen, NGO representatives were presented in the meeting. The attendance was representative enough to share and discuss on the project activities. The participants were invited in various means of communication. Non technical summary was attached with invitation letter all participants to understand the project activities in advance and maximize their participation in LSC. Non-technical summary was translated in to Myanmar language. The meeting was organized at MercyCorps Pyawbwe office and the location was accessible for all the participants. Similarly, LSC in Bawdigone was conducted at Village s head residence which is the central location for the participants. The meeting was conducted in both English and Myanmar. To ensure clear understanding of the message delivered in English language, each presentation and discussion was interpreted in to Myanmar language. The participants actively interacted during the meeting, and gave positive feedback and comments on the proposed project. During the meeting, topics on project approach and activities, carbon credit and sustainability of the project was well delivered to the attendants. Most of the questions and comments raised were being answered and addressed appropriately. One of the concerns raised by the participants was the mechanism to resolve any issues such as the problems of the stove. It was answered that MercyCorps (MC) staff, Village Development Council (VDC) and local vendors will work together to solve problems in timely manner. Moreover, villagers can record their concerns with local vendors and it will be reported to the MC staff by the VDC members. Organizing these consultations, the participants and target communicates had clear understanding on the project activities, got opportunities to share their opinion and raised concerns, to choose the affordable and appropriate stove for their community, understood process and detail information of the project. D. 2. Evaluation of the Stakeholder Feedback Round The stakeholder feedback round (SFR) was initiated on the 26 th May 2017 and ended in 26 th July Invitee list for the SFR included the following: a) Stakeholders part of the Design Consultation Phase b) Stakeholders part of the Local Stakeholder Consultation Phase, and c) The Gold Standard s NGO Supporter List.

12 To each of the above stakeholders, the CME made publicly available the following documents; a) Programme of Activities (GS 1729) Design Document b) VPA 005 (GS 5661) Design Document The stakeholders are contacted through the following mediums, wherever applicable: a) s b) LinkedIn InMails/Messages c) Phone calls/ SMS sent on mobile phones of some of the stakeholders in Myanmar A total of more than 140 stakeholders are being contacted for the SFR round At the end of 2-month period, no comments/suggestions or request for clarifications were received from the stakeholders contacted. More details on this in section C.5 of the VPA Design Document D. 3. Evaluation of the Continuous input / grievance mechanism implemented The continuous input/grievance mechanisms outlined in the project design and discussed during Local Stakeholder consultations were present, however, the assessment found out it was not very effective. Hence, these mechanisms were again communicated to the stove users, local vendors and field staff of Mercy Corps. A refresher on the grievance mechanisms was given in every village meeting, along with reminding the stove users and other local stakeholders in ways they can reach the implementation partner and project proponent. The refresher session was given in these villages on the 27 th of July SECTION E. EVALUATION OF THE RISKS ASSOCIATED WITH THE PROJECT ACTIVITY i. Do no harm assessment [See GS Annex H for guidelines on safeguarding principles] Safeguarding principles associated with a medium to high risk Human Rights Assessment of project risks breaching it (medium, high) Myanmar ratified the following relevant treaties and convention. Mitigation or compensation measure proposed by project proponents after discussion with Objective Observer(s)

13 1. The project respects internationally proclaimed human rights including dignity, cultural property and uniqueness of indigenous people. The project is not complicit in Human Rights abuses. 2. The project does not involve and is not complicit in involuntary resettlement. 3. The project does not involve and is not complicit in the alteration, damage or removal of any critical cultural heritage. Labour rights 4. The project respects the employees freedom of association and their right to collective bargaining and is not complicit in restrictions of these freedoms and rights. 5. The project does not involve and is not complicit in any form of forced or compulsory labour. Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) (New York, 18 Dec 1979) Convention on the Rights of the Child (CRC) (New York, 20 November 1989) Low The project activity is on voluntary basis, villagers are not forced to join. The project generates only in-house activity. This doesn t affect any cultural property, and uniqueness of indigenous people. No human right abuse has been observed. Low The project activity doesn t lead or involve any resettlement. Low The project activity is in house activity only, and it doesn t cause damage or removal of any critical cultural heritage. Myanmar ratified the following relevant treaties and convention. C182 Worst Forms of Child Labour Convention, 1999 (No. 182) ILO convention 29 on Forced labour (1930) Low There is no restriction on freedom of association and right to collective bargaining. Low The project staff, retailers and vendors are not forced to join the project. Vendors are getting involved in this project by their own choices and motivation.

14 6. The project does not employ and is not complicit in any form of child labour. 7. The project does not involve and is not complicit in any form of discrimination based on gender, race, religion, sexual orientation or any other basis. 8. The project provides workers with a safe and healthy work environment and is not complicit in exposing workers to unsafe or unhealthy work environments. Environmental protection 9. The project takes a precautionary approach in regard to environmental challenges and is not complicit in practices contrary to the precautionary principle. This principle can be defined as: When an activity raises threats of harm to human health or the environment, precautionary measures should be taken even if some cause and effect relationships are not fully established scientifically. 10. The project does not involve and is not complicit in significant conversion or Low No child labour is employed. All employees/vendors are adults. Low the project doesn t involve any form of discrimination based on gender, race and religion as well as sexual orientation. Low The project doesn t involve any unsafe activity and material. Myanmar ratified the following relevant treaties and convention. UN Kyoto Protocol to the United Nations Framework Convention on Climate Change on the 26th of May 2005 Convention on Biological Diversity Low the project activity has positive impact on the environment. The project reduces number of trees being cut for firewood and amount of emissions too. All respondents expressed that there was no harm to human health and the environment. Low the project activity reduces the firewood consumption which is mainly collected from their

15 degradation of critical natural habitats, including those that are (a) legally protected, (b) officially proposed for protection, (c) identified by authoritative sources for their high conservation value or (d) recognised as protected by traditional local communities Anti Corruption 11. The project does not involve and is not complicit in corruption. family farms. It s doesn t affect other protected resources. Myanmar ratified the following relevant convention. UN Convention against Corruption (UNCAC) Low There was no bias. Everyone has the rights to submit their name and paid the fixed price. Payment is recorded on the receipt. ii. Evaluation of mitigation or compensation measures proposed by project proponents The findings on assessment on safeguarding principles exposed that the project activity risk was low. Therefore, mitigation or compensation measures do not require to be proposed. SECTION F. EVALUATION OF SUSTAINABLE DEVELOPMENT RELATED ISSUES POTENTIALLY ASSOCIATED WITH THE PROJECT ACTIVITY i. Environmental issues The Envirofit SmartSaver GL stove used in this project has a positive impact on the indoor and outdoor environment. The project stoves significantly reduce the indoor air pollution with 82% reduction in CO and 70% reduction in Particulate Matter as compared to the three stone baseline stoves. Moreover, with 66% less fuel use, it also saves the same amount of CO 2 emissions. All the 65 respondents unanimously agreed that the new project stove has less emissions, and reduced eye irritation, due to its portability, it can be moved around easily. For example,

16 households use this stove indoors in rainy season and outdoors, under a tree in summer. Users also reported that this smoke emits lot less heat as compared to three stone fires, which make cooking easy for them, especially in summer. The users are clearly benefiting economically with less money/time being spent in buying/collecting wood, and having a cleaner, healthier environment to live in, especially for women and small children who stay indoors mostly. The awareness raising campaigns also help these rural households to understand the nature and magnitude of the environmental challenge Myanmar Stoves Campaign is trying to solve through this intervention. These households are made aware and sensitised on issues of deforestation and it s repercussions, global warming and climate change. These efforts are helping them to be better informed and make responsible choices, especially with their cooking style and habits. Users remember the topics covered in these workshops, which were conducted more than a year ago. ii. Social and economic issues The project results in a direct positive impact on the social and economic issues. These impacts are visible on the health of small children and women, who were earlier exposed to harmful toxic smoke coming from the use of a three-stone fire, mostly indoors in a confined space. Now with the new FES, these emissions have reduced significantly. Better efficiency of the stove results in less wood being required, which directly translates into monetary and time savings which can be spend in other productive activities. Myanmar Stoves Campaign ensures that the stove is offered at a price point and payment plans where it is easy for the households to purchase these. Households in these villages are also involved in hair cleaning work, used for further processing in making wigs. Users shared on how they get more time for this work due to less time and attention required for cooking with the project stove, helping them to be more productive. The project has also trained and developed hundreds of local vendors, which have acquired new skills and knowledge, and have a new source of income from this project, all of which is playing its role towards strengthening the local economy. The Local Vendor from Thar Yar Kone village especially, Daw Zar Kyi Aye has alone sold close to 550 stoves and shared how the income from these sales plus a bonus helped her finance her brother s education. Another women local vendor, Daw Chan Ei Han from Thar Ga Ya village too has sold more than 550 stoves and received similar financial benefits. But more than the financial benefits, the training and the platform provided by this project has helped these women to build their confidence, social networking skills, leadership abilities, and overall personal and professional development. iii. Sustainability Monitoring Plan

17 No 1 Indicator Mitigation measure Repeat for each parameter Chosen parameter Current situation of parameter Estimation of baseline situation of parameter Future target for parameter Air Quality Not Required N/A Visible improvement in the indoor air quality by reduction of smoke, and sub-sequent indoor air pollution, irritation to eyes, soot emitting out and depositing on the walls of houses. Unanimous agreement from the stove users that the project stove has significantly improved the indoor air quality as compared to the earlier baseline stove. Elevated levels of smoke coming out from stove usage, irritation to eyes, respiratory difficulties and higher deposition of soot on the walls of the kitchen area/house. Maintain and improve the indoor air quality. Way of monitoring How Household Surveys, Focus Group Discussions & Interviews When By who Annually after stoves are distributed Self-Assessment by CME or Independent Auditor No 2 Indicator Mitigation measure Repeat for each parameter Chosen parameter Current situation of parameter Estimation of baseline situation of parameter Future target for parameter Livelihoods of the Poor Not Required N/A Money and time spent in purchasing/collecting firewood Money and time are both saved by the project stove, households consume around 50% less wood Households spent 2 times and sometime more time and money to collect and purchase firewood Increase the time and money savings for users Way of monitoring How Household Surveys, Focus Group Discussions & Interviews When By who Annually after stoves are distributed Self-Assessment by CME or Independent Auditor

18 No 3 Indicator Mitigation measure Repeat for each parameter Chosen parameter Current situation of parameter Estimation of baseline situation of parameter Future target for parameter Access to Affordable and Clean Energy Not Required N/A Access and satisfaction with project stove, durability of stoves, savings in fuel There has been high levels of user satisfactions with the project stove, savings in fuel are evident. Households are also impressed and happy with the small portable design of stove which can be easily carried around anywhere. Three stove fires were easily accessible but are stationary, emit more heat on the user, consume more wood and does not provide with a healthy and comfortable environment for the user. Increase the outreach and number of stoves distributed. Maintain and increase the level of user satisfactions. Way of monitoring How Household Surveys, Focus Group Discussions & Interviews When By who Annually after stoves are distributed Self-Assessment by CME or Independent Auditor No 4 Indicator Mitigation measure Repeat for each parameter Chosen parameter Current situation of parameter Estimation of baseline situation of parameter Future target for parameter Human & Institutional Capacity Not Required N/A Number of households participated in environmental awareness raising campaigns and sessions. A large number of households from the villages participated in the awareness raising campaigns, including high participation from women. None of this existed Increase the number of household and women participation Way of monitoring How Household Surveys, Focus Group Discussions & Interviews When Annually after stoves are distributed

19 By who Self-Assessment by CME or Independent Auditor No 5 Indicator Mitigation measure Repeat for each parameter Chosen parameter Current situation of parameter Estimation of baseline situation of parameter Future target for parameter Quantitative Employment & Income Generation Not Required N/A Number of local vendor jobs created and increase in income & social recognition. High number of local vendors in this VPA from all the villages, and significant increase in their social recognition and some assistance through financial incentives. Did not exist Increase more local vendors with more focus on women Way of monitoring How Household Surveys, Focus Group Discussions & Interviews When By who Annually after stoves are distributed Self-Assessment by CME or Independent Auditor SECTION G. Sustainable Development eligibility criteria for inclusion of a VPA to the PoA The CME described 5 considerations as eligibility criteria for sustainability development. The observation from field trip and project documents, air quality and livelihood of the poor were main criteria for inclusion of the VPA as per the registered micro programme. Simultaneously access to affordable and clean energy, quality of employment, human and institutional capacity indicators also contributed as main eligibility criteria for SD. CME distributed fuel efficiency stoves in local communities as renewable energy supply. According to the interaction with the users, the FES technology improved the air quality by emission reduction because the annual amount of firewood consumption reduced around 50%. Similarly, the technology improved the livelihood of the poor the time spent for cooking per day also reduced along with time spend in collecting firewood. For households purchasing firewood, around 50% of their expense on it is saved due to this stove. From the field trip findings, the SD eligibility criteria are compliant for inclusion of the VPA as per the registered micro programme.