Minister Do Duc Duy stated that the Vietnamese government welcomes foreign enterprises like EREX to invest in new technology projects that reduce greenhouse gas emissions and generate carbon credits.
On the afternoon of September 23rd, Party Central Committee Member and Minister of Natural Resources and Environment Do Duc Duy met with Honna Hitoshi, President and CEO of Erex Corporation Japan. Attending the meeting with the Minister were leaders of units under the Ministry of Natural Resources and Environment: Director General of International Cooperation Department Le Ngoc Tuan; Director General of Climate Change Department Tang The Cuong; Director General of Environmental Pollution Control Department Hoang Van Thuc; Director General of Environment Department Nguyen Hung Thinh; Chief of the Office of the Ministry Pham Tan Tuyen.
Party Central Committee Member and Minister of Natural Resources and Environment Do Duc Duy received and worked with Mr. Honna Hitoshi, President and CEO of Erex Corporation Japan
At the meeting, Mr. Honna Hitoshi said that EREX is actively exploring and investing in the biomass power sector in Viet Nam. The company is researching and proposing 14 biomass power plant projects in 12 provinces with a capacity of over 1,000 MW. One 20MW biomass power plant project in Hau Giang has received support from the Japanese government for construction under the Joint Crediting Mechanism (JCM) and commenced construction in December 2022. The project is expected to be registered as a JCM project in 2024.
EREX has recently received support from the Japanese government to implement two more 50MW biomass power plants in Yen Bai and Tuyen Quang under the JCM. For projects planned to be registered under the JCM, EREX proposes a carbon credit allocation ratio that ensures satisfaction for all parties involved, including the Vietnamese government, the Japanese government, and EREX.
Minister Do Duc Duy welcomed EREX's pioneering efforts in investing in greenhouse gas emission reduction and carbon credit generation, particularly in the biomass power sector. Carbon credits obtained from these projects will be allowed to be traded on the future Vietnamese carbon market and, depending on bilateral mechanisms and government priorities, may be transferred to partner countries, contributing to the implementation of their Nationally Determined Contributions (NDCs).
Minister Do Duc Duy presented gifts and took souvenir photos with the delegation of Erex Corporation Japan
Regarding the development of the carbon market in Viet Nam, Minister Do Duc Duy said that regulations on the organization and development of the domestic carbon market have been included in the 2020 Law on Environmental Protection and detailed in Decree No. 06/2022/ND-CP. The domestic carbon market includes activities related to the trading of greenhouse gas emission quotas and carbon credits obtained from domestic and international carbon credit trading and offset mechanisms.
The Ministry of Natural Resources and Environment is currently reviewing and amending some articles of relevant legal documents to enable the trading of greenhouse gas emission quotas and carbon credits in 2025.
Regarding the Joint Crediting Mechanism (JCM), the Ministry of Natural Resources and Environment continues to coordinate with the Ministry of the Environment and relevant parties in Japan to review, supplement, and complete regulations and guidelines for project implementation under the Mechanism, ensuring compliance with domestic regulations of both countries and compatibility with international regulations. They also receive and exchange information on project concept notes, project registration, and new methodologies proposed for application under the JCM.
Overview of the reception and working session on the afternoon of September 23rd
At the meeting, Minister Do Duc Duy and President & CEO Honna Hitoshi also listened to presentations from specialized units of both sides and discussed in more depth the JCM and the Emissions Trading System (ETS). EREX has been applying technology to convert from fossil fuel (coal) to entirely biomass and has become a leading enterprise in the biomass power sector in Japan. EREX believes that using biomass fuel in coal-fired thermal power plants helps maintain electricity production while promoting the carbon neutrality process, ensuring a balance between economic efficiency and environmental factors. EREX wants to cooperate early to bring the fuel conversion project to become a JCM project in Viet Nam.
EREX proposes organizing a Joint Committee meeting between the Vietnamese and Japanese governments to discuss and reach common agreements for both sides. EREX also proposes establishing a special joint working group to create the Vietnamese ETS market.
Acknowledging the discussions at the meeting, Minister Do Duc Duy highly appreciated EREX as a pioneering investor in Viet Nam and committed to working with the Vietnamese government towards the NetZero goal. EREX and its projects are typical examples for Viet Nam and Japan to evaluate and establish common conventions and regulations on JCM implementation. The Minister assigned the Department of Climate Change to directly discuss and work with the company on matters related to the JCM and emissions trading.
Minister Do Duc Duy hopes that EREX and the Ministry of Natural Resources and Environment will continue to have more effective cooperation activities, contributing to further deepening the relationship between Viet Nam and Japan, especially in the field of natural resources and environment
Furthermore, the Ministry of Natural Resources and Environment will continue to promote the early organization of the 9th Joint Committee meeting to consider and approve important contents, facilitating the implementation of activities under the JCM in Viet Nam. Regarding the establishment of a special working group to implement the ETS, there will be meetings and thorough discussions between the two sides, and specific plans will be developed.
Minister Do Duc Duy affirmed that the Vietnamese government welcomes foreign enterprises like EREX to invest in new technology projects that reduce greenhouse gas emissions and generate carbon credits. The Minister requested relevant units under the Ministry of Natural Resources and Environment to continue supporting, providing, and exchanging information with EREX so that the company can soon invest and implement many greenhouse gas emission reduction projects in the biomass power sector in Viet Nam. He also expressed hope that EREX and the Ministry of Natural Resources and Environment will continue to have more effective cooperation activities, contributing to further deepening the relationship between Viet Nam and Japan, especially in the field of natural resources and environment.