During the meeting, the Committee agreed to issue carbon credits for nine JCM projects registered between 2013 and 2020 and discussed implementing the JCM in the 2021–2030 period.

Deputy Minister Le Cong Thanh delivering remarks at the meeting

In his opening remarks, Deputy Minister Le Cong Thanh said that Vietnam and Japan signed an agreement to implement the JCM in 2013, which was renewed in 2017 with an implementation period until the end of 2020. To date, the Joint Committee has approved 15 methodologies, and 14 JCM projects have been registered in Vietnam, eight of which have collectively received 4,115 credits. To continue the JCM into the next phase, the Vietnamese and Japanese governments signed a Memorandum of Cooperation on low-carbon growth in 2021.

Like Japan, Vietnam is committed to achieving Net-Zero emissions by 2050 and has earnestly implemented this pledge. Regulations on greenhouse gas emissions reduction have been incorporated into the 2020 Environmental Protection Law, which took effect in 2021. Vietnam is also developing a carbon market project, with a pilot phase starting in 2025 and full operation by 2028. "Vietnam has a legal framework for carbon credits, and the pilot programs within the JCM are legally established. The next step is to refine the legal basis so the JCM can operate effectively under current laws," Deputy Minister Le Cong Thanh emphasized.

Deputy Ambassador of Japan to Vietnam Ishikawa Isamu addressing the meeting

Deputy Ambassador Ishikawa Isamu mentioned that the JCM aligns with Article 6 of the Paris Agreement and can contribute to the Nationally Determined Contributions (NDCs) for emission reduction in both Vietnam and Japan. Japan looks forward to continued cooperation with Vietnam to develop the JCM and accelerate the approval of registered projects. This is also an opportunity to further strengthen the two countries' cooperation toward the goal of Net Zero.

During the meeting, the Joint Committee agreed to issue carbon credits for nine projects registered from 2013 to 2020, including projects such as: installing solar power systems in shopping centers in Ho Chi Minh City; implementing eco-driving through electronic speed monitoring; using high-efficiency amorphous steel core transformers in the southern power transmission system; installing energy-efficient air conditioners at Ricoh Imaging Vietnam; assembling battery casings at Hitachi Chemical Energy Technology Vietnam’s factory; installing energy-saving equipment in a lens manufacturing plant; and installing energy-saving cable braiding machines at Yazaki EDS Vietnam’s factory.

Director of the Department of Climate Change (MONRE) Tang The Cuong giving a speech at the meeting

According to representatives from Japan's Ministry of the Environment, credits granted to these projects are based on emissions reductions achieved before 2021, so they will not affect Vietnam’s mandatory emission reduction targets for the 2021–2030 period under the Paris Agreement.

Representatives from the Vietnamese and Japanese sides of the Joint Committee also discussed proposals for the upcoming JCM implementation.

Mr. Tang The Cuong, Director of the Department of Climate Change (MONRE), explained that to ensure a solid basis for transferring carbon credits from Vietnam internationally for use in partner countries' NDCs, MONRE has proposed a regulation on issuing Letters of Consent for international transfer of carbon credits and emission reductions in the draft Decree amending Decree No. 06/2022/ND-CP. This requires that bilateral or multilateral cooperation agreements between Vietnam and partner countries be signed in accordance with the Law on International Treaties. The 2021 Memorandum of Cooperation on low-carbon growth between Vietnam and Japan does not constitute an international treaty.

To ensure the JCM is implemented in accordance with the Paris Agreement on climate change and complies with both countries' regulations through 2030, the Department of Climate Change has proposed that a cooperation agreement to implement the JCM be signed under the Law on International Treaties. Representatives from the Ministry of Foreign Affairs and Ministry of Justice agreed, stating that many previously agreed items no longer suit the current stage and need renegotiation. This would facilitate carbon credit exchanges and transactions within the JCM in the future.

For the allocation of carbon credits from JCM projects during the 2021–2030 period, representatives from the Ministry of Finance, Ministry of Industry and Trade, and Ministry of Transport recommended that, alongside financial contributions, other factors, such as the resources available in Vietnam for project implementation and the specific characteristics of projects in various sectors, be considered.

Representatives from Japan’s Ministry of Environment, Ministry of Economy, Trade, and Industry shared Japan’s programs supporting JCM cooperation, focusing on capacity building, project development, project implementation, and emission reduction monitoring and evaluation. Alongside renewable energy projects, Japan will also expand JCM projects in agriculture, forestry, and refrigerant recovery and destruction.

Deputy Minister Le Cong Thanh welcomed Japan’s proposals, stating that expanding JCM project fields aligns with areas that Vietnam is highly interested in. Vietnam will continue to learn from Japan’s experience and expects the JCM will yield even better outcomes.

Deputy Ambassador Ishikawa Isamu expressed Japan’s aspiration to reduce emissions by 46% by 2030 and achieve Net Zero by 2050 through the JCM. Based on bilateral cooperation, JCM projects can make a positive contribution to Vietnam's socio-economic development.

According to the plan, a Cooperation Agreement on JCM Implementation between the Socialist Republic of Vietnam and Japan, under the Law on International Treaties, is expected to be signed by June 2025.

The JCM was proposed by the Japanese government in 2013. Currently, 29 countries participate in the JCM with Japan, and 101 methodologies have been approved (including 99 methodologies in renewable energy and energy efficiency and two in REDD+). A total of 83 projects have been registered, of which 41 projects have been issued 739,411 carbon credits in total.

Ngoc Huyen (NRE Newspaper)