THE IMPLEMENTATION OF JCM IN VIET NAM

ContentsOverview of Vietnam’sJCMMilestones andachievementsExpectations for low-carbon growthThe wayforward

OverviewThe Beginning The MOUInstitutional arrangement Project Procedure Cycle

Vietnam-Japan JCM: The Beginning2 July 2013 - Signing thebilateral document on Joint Crediting Mechanism

“Memorandum of Cooperation on Low Carbon Growth between theVietnamese side and Japanese side”

Minister of Natural resources and Environment Vietnam

Minister of Economy, Trade and Industry Japan

Vietnam-Japan JCM: the MOU

JCM is a mechanism that encourages the business sector of both sides to invest in low-

carbon technologies

Vietnam-Japan: Institutional arrangement

Circular 17/2015/TT-BTNMT by MONRE dated 06 April 2015 on

guidelines for the implementation of JCM projects

Rules of procedure Guidelines for the

implementation of JCM projects Others…

Government ofVietnam Government of JapanGovernment of Vietnam Government of Japan

Joint Committee(02 Co-chairs)

Vice Minister of MONRE (co-chair)

MONRE MOIT MOF MPI MARD MOC MOST MOT

Minister of Japan Embassy in Hanoi (co-chair)

MOEJ METI Other agencies

JCM Secretariat

Vietnam’s DMHCC

Japan’s Mitsubishi UFJ Research and

Consulting Co., Ltd

Vietnam-Japan JCM: Project ProcedureCycle

*Possible to implement by the same TPE*Possible to implement simultaneously

Joint Committee

Project Participants

Third Party Entities (TPEs)

Joint Committee

Project Participants

Third Party Entities (TPEs)

Submission of the proposed methodology

Approval of the proposed methodology

Creation of the PDD

Validation

Registration

Monitoring

Verification

Issuance of the credit Joint Committee/Government

Project Participants

Approval of the registration

Project Participants

Milestones and achievements

Major milestones Other achievementsApproved Methodologies Projects

JC Meetings18

/9/2

013

First Joint Committee

MeetingSigning Ceremony for adoption of the “Guidance for the Implementation of the Joint Crediting Mechanism” and the “Joint Crediting Mechanism Rules of Procedures for theJoint Committee”Discussion on other rules and guidelines for adoption

17/2

/201

4SecondJoint Committee

MeetingAdopted rules and guidelines to befollowed for thepilot phase of the JCM implementation between Vietnamese side and JapanesesideDiscussion onthe potentialprojects

14/1

/201

5

Third Joint Committee

MeetingAdopted 3proposed methodologiesDiscussion on proposed revised “Joint Crediting Mechanism Rules of Procedures for the Joint Committee”, “Joint Crediting Mechanism Guidelines Project Cycle Procedures” and “Joint Crediting Mechanism Guidelines for Designation as a Third- PartyEntity”

4/8/

2015

FourthJoint Committee

Meeting1st JCM registered projectDiscussion on proposed amendments to the “Guidance for the Implementation of JCM”, “JCM Credits Issuance Request Form” and “JCM Project Cycle Procedures”

20/0

8/20

16

The 5th JC MeetingDiscussion on proposed amendments to the “Guidance for the Implementation of JCM”, “JCM Credits Issuance Request Form” and “JCM Project Cycle Procedures”Guidance for report formulating of monitoring, project design, Discuss abour MOU

10/1

0/20

17

The 6th JCM Meeting-Issuance of credits for 2 projects.

- SixthJoint Committee Meeting : 10/10/2017 - Issuance of credits for 2 projects.

Vietnam-Japan JCM: Other achievements

*Designating TPEs

Calling for public input on methodologies/project documents

*Approving methodologies/JCM projects

Institutionalization of JCM (Circular 17/2015/TT-BTNMT by MONRE)

Promotion, capacity building and awareness raising

Encouraging private sector involvement

*Joint Committee decisions made via electronic means

Vietnam-Japan JCM:ApprovedMethodologies

Methodology calculating emission reductions achieved by project and monitoring

project.

VN_AM001

Transportation energy efficiency activities by installing digital tachograph systems

VN_AM002

Introduction of Room Air Conditioners Equipped with Inverters

VN_AM003

Improving the energy efficiency of commercial buildings by utilization of high efficiency equipment

VN_AM004

Anaerobic digestion of organic waste for biogas utilization within wholesale markets

VN_AM005

Installation of energy efficient transformers in a power distribution grid

App

rove

dm

etho

dolo

gies

Vietnam-Japan JCM:ApprovedMethodologies

Methodology calculating emission reductions achieved by project and monitoring

project.

VN_AM006

Introduction of air conditioning system equipped with inverters

VN_AM007

Installation of Solar PV System

VN_AM008

Installation of LED lighting equipment to fishing boats

VN_AM009

Installation of Container Formation Facility at Lead Acid Battery Factory

App

rove

dm

etho

dolo

gies

Number of JCM projects are approved

VN001: Eco-Driving by Utilizing Digital Tachograph System

VN002: Promotion of Green Hospitals by improving efficiency/ environment in national hospitals in Vietnam

VN003: Improving the energy efficiency of commercial buildings by utilization of high efficiency equipment

VN004: Introduction of amorphous high efficiency transformers in power distribution systems in the southern part of Viet Nam

VN005: Introduction of High Efficiency Air-conditioning in Hotel

63%

21%

5%

5%6%

JCM PROJECTS BYSECTOR

Energy

Waste

Transportation

City-to-city

Others

Vietnam-Japan JCM:Projects

Expectations for low- carbon andsustainable development

Scope of works :Energy Agriculture LULUCFWaste

Targe t GHG:Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O),Hydro fluorocarbons (HFCs), Perfluorocarbons (PFCs), Sulfur hexafluoride (SF6).

BAU:2010: 225.6 million tCO2e2020: 474.1 million tCO2e2030: 787.4 million tCO2e

Contr ibut ion t o GHG emiss ion reduct ion goals in INDC• Contr ibut ion ( no suppor t )

– By 2030, with only domestic resources: reduce by 8 % total GHG emissions compared to BAU, including:

– Increase renewable energy to 4 % of the total electrical energy

– Increase forest cover of 45%.

• Contr ibut ion (wi th intl s uppor t )

– By 2030, with only domestic resources: reduce by 2 5 % total GHG emissions compared to BAU, including:

– 3 0 - 3 5 % emission intensity per unit of GDP compared to 2010.

– Increase renewable energy to 9 % of the total electrical energy

Vietnam-Japan JCM: Expectations forNDC

Advanced technologies in varied sectors:

- Energy efficiency/saving- Transportation- Waste- Agriculture- LULUCF

Knowledge, know-how and ownership

Strong cooperation between the business sector of the Japanese and Vietnamese sides

Vietnam-Japan JCM: Expectations for technologytransfer

Enhanced collaboration between cities:

- Strengthened economic activities- Cleaner production- Sustainable development- Social benefits

Stronger synergy between all sectors Closely aligned with development needs on a local level

(bottom-up approach) Better cooperation between business sectors

Vietnam-Japan JCM:City-to-City

The wayforward

Vietnam-Japan JCM: The wayforward Cooperating with Vietnamese stakeholders

and Japanese counterparts to review and strengthen the project cycle procedures, credit distribution, credit trading andfinancial mechanism

Forming technical advisory board forJCM Organizing JCM workshops to

government agencies and businesssector

Organizing business forum on JCM andother technology support mechanisms

Thank you!