Strengthening renewable energy cooperation to support Vietnam’s Net-Zero emission commitment

Speaking at the meeting, Acting Minister Tran Duc Thang expressed his pleasure in welcoming the Erex delegation to Vietnam and congratulated the company on its achievements in clean energy, particularly the operation of the Hau Giang Biomass Power Plant, a pioneering project in Vietnam under the Joint Crediting Mechanism (JCM) with Japan.

Erex Co., Ltd. is one of Japan’s leading corporations in biomass energy, pioneering the conversion of coal-fired power plants to biomass fuel. This approach aligns with Vietnam’s energy transition strategy. In Vietnam, Erex Co., Ltd. is implementing and proposing 19 biomass power projects across 18 provinces, with a total capacity exceeding 1,100 MW, along with plans to convert six coal-fired power plants to co-firing biomass with a combined capacity of 1,585 MW.

Projects in Lao Cai (formerly Yen Bai), Tuyen Quang, and Can Tho (formerly Hau Giang) are being implemented under the JCM framework, contributing to the reduction of hundreds of thousands of tons of CO₂ emissions annually. Acting Minister Tran Duc Thang highly appreciated Erex Co., Ltd.’s investment and partnership in supporting Vietnam’s commitment to achieving Net-Zero emissions by 2050, one of the country’s key objectives under its sustainable development and green growth strategies.

During the meeting, the Ministry’s leadership affirmed that Vietnam encourages international enterprises with financial capacity, experience, and technology to engage deeply in renewable energy projects, particularly biomass power, a sector well-suited to agricultural production conditions and able to effectively utilize agricultural and forestry by-products and residues.

Acting Minister Tran Duc Thang highlighted that the Ministry is actively drafting a Decree on the international exchange of greenhouse gas mitigation outcomes and carbon credits, expected to be submitted to the Government for issuance in 2025. This decree will provide a clear legal framework for implementing international cooperation mechanisms such as the JCM, while expanding connections with potential partners such as Singapore, South Korea, and Switzerland.

The Joint Crediting Mechanism (JCM) between Vietnam and Japan has been implemented since 2013. To date, 15 methodologies have been approved, 14 projects registered, over 35,000 carbon credits issued, and more than USD 35 million in support received from Japan. The two sides also signed the JCM Cooperation Agreement for 2021–2030 and are adjusting it to comply with the new regulations under the Paris Agreement.

Initiating the establishment of a carbon market taskforce

Mr. Honna Hitoshi, Chairman and CEO of Erex Co., Ltd., expressed his desire to collaborate with the Ministry of Agriculture and Environment in establishing a taskforce to exchange information, share experience in operating carbon markets, and coordinate the development of emission credit systems according to international standards.

Acting Minister Tran Duc Thang agreed with this proposal and assigned the Department of Climate Change to coordinate with Erex Co., Ltd. The taskforce will serve as a focal point for sharing information, experience, and technical expertise in carbon market development, ensuring compliance with Vietnam’s legal regulations while aiming to connect with international markets. This is considered a concrete step in the process of forming a domestic carbon market, an important economic instrument to achieve greenhouse gas emission reduction goals.

Additionally, the Ministry acknowledged Erex Co., Ltd.’s willingness to invite a working delegation from Vietnam to visit Japan to study domestic carbon credit systems, observe the operation of registration systems, and visit renewable energy plants. The Ministry assigned the Department of International Cooperation to coordinate with the Department of Climate Change to develop a detailed plan for this initiative, aiming to enhance technology transfer and experience exchange between the two sides.

Regarding the JCM, the Minister instructed the Department of Climate Change to coordinate with relevant Japanese authorities to convene the Vietnam–Japan Joint Committee meeting, review and adjust implementation guidelines in line with the new Paris Agreement regulations, and agree on carbon credit allocation rates to ensure balanced benefits for all parties.

Looking at long-term cooperation, Acting Minister Tran Duc Thang expressed the hope that Erex Co., Ltd. will continue to accompany Vietnam in developing new technologies, investing in renewable energy projects, and closely coordinating with ministries, sectors, and localities to ensure that projects align with the National Power Development Plan VIII and national strategies on climate change and clean energy.

At the conclusion of the meeting, Acting Minister Tran Duc Thang expressed confidence that, with Erex Co., Ltd.’s experience and support from the Japanese Government, biomass projects in Vietnam will achieve high efficiency, contributing to promoting strategic Vietnam–Japan cooperation in clean energy, environmental protection, and climate change response.

Erex Co., Ltd. is known as a pioneering Japanese enterprise in biomass energy and green transition, currently operating six biomass power plants in Japan with a total capacity of nearly 350 MW, while expanding international investment, with Vietnam being a key market. 

Khanh Linh - Ngoc Huyen