MR. DUONG PHUOC HUNGDirector of Bilateral Cooperation Division - International Cooperation Department

AndMS. NGUYEN THANH HAI

Oficial of Science-Technology and International Cooperation DivisionDepartment of Meteorology, Hydrology and Climate ChangeMinistry of Natural Resources and Environment of Viet Nam

Tokyo, 3 March 2016

Overview of Vietnam’s JCMMilestones and achievementsThe way forward

The BeginningThe MOU

Institutional arrangementProject Procedure Cycle

2 July 2013 - Signing the bilateral document on Joint Crediting Mechanism

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

Minister of Natural resources and Environment Vietnam

Minister of Economy, Trade and Industry Japan

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

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 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

Major milestonesSelected sectors

Other achievementsApproved Methodologies

Flagship JCM ProjectTPEs

Promoting

18/9

/201

3

First Joint Committee

Meeting

Signing Ceremony for adoption of the “Guidance for the Implementation of the Joint Crediting Mechanism” and the “JCM Rules of Procedures for the Joint Committee”

Discussion on other rules and guidelines for adoption

17/2

/201

4

Second Joint Committee

Meeting

Adopted rules and guidelines to be followed for the pilot phase of the JCM implementation between Vietnamese side and Japanese side

Discussion on the potential projects

14/1

/201

5

Third Joint Committee

Meeting

Adopted 3 proposed methodologies

Discussion on proposed revised “Joint Crediting Mechanism Rules of Procedures for the Joint Committee”, “JJCM Guidelines Project Cycle Procedures” and “JCM Guidelines for Designation as a Third-Party Entity”

4/8/

2015

Fourth Joint Committee

Meeting

1st JCM registered project

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

8/12

/201

5

3rd high-level meeting of JCM at COP21

2nd JCM registered project

H.E Vice Minister Tran Hong Ha of MONRE attended the 3rd

high-level meeting of JCM at COP21 to welcome new members of the JCM (Arabic Saudi, Myanmar, Chile and Thailand)

Vietnam-Japan JCM: Selected sectors

•Energy industries

•Energy distribution;

•Energy demand;

•Agriculture

•Waste handling and disposal;

•Afforestation and reforestation;

•Chemical industry;

•Manufacturing industries;

•Construction;

•Transport;

•Mining/Mineral production;

•Metal production

•Fugitive emissions from fuels (solid, oil and gas)

•Fugitive emissions from production and consumption of halocarbons and sulphur hexafluoride;

•Solvents use;

•Others

310

25

39

56

65

0

10

20

30

40

50

60

70

Feasibility study and model projects

Number of JCM feasibility studies, planning studies, model and demonstration projects

2010 2011 2012 2013 2014 2015

63%

21%

5% 6% 5%

SectorEnergy Waste Transportation City-to-city Others

Vietnam-Japan JCM: Other achievements

Vietnam-Japan JCM: Projects

3

10

25

39

56

65

Feasibility study and model projects

NUMBER OF JCM FEASIBILITY STUDIES,  PLANNING  STUDIES,  MODEL AND 

DEMONSTRATION PROJECTS

2010 2011 2012 2013 2014 2015

Project Type Project Title ERs (t-CO2/y)

Registration Date

EnergyEfficiency

Promoting green hospitals through improving energy/environment in national hospitals in Vietnam 206 30-Nov-15

Transport Eco-Driving by Utilizing Digital Tachograph System 296 4-Aug-15

IN THE PIPELINEEnergy

EfficiencyIntroduction of amorphous high efficiency transformers in power distribution systems in the southern part of Viet Nam 610 Calling for

public input

Energy Efficiency

Low carbon hotel project in Vietnam: Improving the energy efficiency of commercial buildings by utilization of high efficiency equipment

294 Public input closed

MethodologyMethodology 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_AM003Improving the energy efficiency of commercial buildings by utilization of high efficiency equipmentVN_AM004Anaerobic digestion of organic waste for biogas utilization within wholesale marketsVN_AM005

Installation of energy efficient transformers in a power distribution grid

Appr

oved

m

etho

dolo

gies

The Project will develop a new energy saving product for wide spreaduse in Vietnam by integrating highly-proven Japanese existing technologywhile demonstrating energy saving effect.

Summary

Summery of Introduced Technology

Chiller plant system（V-BEMS）

V-BEMS will be developed as the Vietnam-oriented BEMS (Buildingand Energy Management System), consisting of low-cost hardware andhigh-function software, utilizing Japanese proven technology. Theoperation manual will also be adapted for Vietnam environment.

Hot-water supply system（Best mix control system）

Best mix control will be introduced for each facility, reflectingrenewable energy utilization, heat-pump technology introduction, andefficiency improvement.

Lighting equipment

High-efficiency LEDs will be introduced for the place where they areused for 24 hours, like lobby, and efficiency improvement.

Country Vietnam

Proposed Company Hibiya Engineering, Ltd.

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd

Partner

Site

MONRE , HCMUNRE

Hotel Nikko Hanoi

RENAISSANCE RIVERSIDE HOTEL SAIGON

Estimated Reduction amount

About 10 percent (294 tons of CO2 per year) in the model project

High-efficiency LEDs

Japan Side

【JAPAN】NEDO

Vietnamese Side

【VIETNAM】MONRE

JAPANESE PARTICIPANTS・Hibiya Engineering, Ltd.・Mitsubishi UFJ Morgan Stanley Securities Co., Ltd

JCM Cooperation

MOUSigned on 12 Nov 2014

Entrust Supervise

ID/Implementation Document

Signed on 12 Nov 2014

JCM Bilateral Document

Signed on 3 July 2013

VIETNAMESE PARTICIPANTHCMC University of Natural Resources and Environment, MONRE(HCMUNRE)

PROJECT SITE:・Hotel in Hanoi・Hotel in Ho Chi Minh City

Project Organization Diagram (V-BEMS)

Project Status V-BEMS

(1) Equipment Installation①Hotel in HCMC：Will be accomplished in Mar 2016②Hotel in Hanoi：Will be accomplished in Apr 2016

*ＢＥＭＳ will be installed about 1 month after accomplishment of the equipment installation.Operating the monitor, evaluate the effectiveness of the alternative new devices inreducing CO2 emissions expected 2 years(04/2016-12/2017)

(2)JCM Methodology：Registered on 15 Jan 2014・Name：VN_AM003

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

(3) JCM Project Registration・Accomplished Public input of the PDD（５ Dec 2015～3 Jan 2016）・Validation is undertaking

Name of Project “Introduction of Amorphous high efficiency transformers in power distribution systems of Southern Power Corporation (SPC)”

Host Country VietnamProject Participants JAPAN: YUKO KEISO Co., Ltd.

Vietnam: Southern Power Corporation (EVN SPC)Total equipment cost Approximately 400 million JPYPeriod From beginning of Feb, 2015 to end of Mar, 2016Site Transmission and distribution network in southern VietnamTechnology Amorphous high efficiency transformer

⇒With the use of amorphous high efficiency transformers, it is able to realize a reduction of transmission and distribution losses and contribute to Green House Gas emission reduction

Scale of investment EVN Southern Power Corporation is planning to purchase and install 1,618 Amorphous high efficiency transformers

Finance JCM support from Ministry of Environment of JapanExpected GHG Reductions 623 tCO2/year

This project aims to introduce amorphous high efficiency transformers to power distribution systems of Electricity of Viet Nam, and expects to reduce transmission losses of the systems .

Amorphous high efficiency transformer

Sites of Project Subject of Project

“④TRANSFORMERS” are the subjects of the project.

Project Transformer

Single phase Three phase

The transmission and distribution network in

southern Vietnam(EVN SPC)

By Tonbi ko, https://commons.wikimedia.org/w/index.php?curid=42713363

JCM Consortium

YUKO KEISO Co., (Representative of

consortium)EVN SPC

THIBIDI

MOEJ

Hitachi Metals

Indirect management of technology installment and operation Purchase

Amorphous Delivery and support maintenance

Report

Report activities

DeliveryOrder

Support on procedureOECC

Japan’s Ministry of environment (MOEJ) supports EVN SPC’s installment of the high-efficient transformer (which uses Hitachi Metal’s Amorphous metals) by providing the JCM grant up to 50% of the purchase cost.

YUKO KEISO, as representative of the JCM consortium, plays a role of managing the project by collecting evidence of installation, operation of the Amorphous transformers from EVN SPC and applying for the JCM grant. YUKO KEISO is also in charge of reporting annual CO2 reduction volumes of the project to the MOEJ annually.

EVN SPC, as the representative of the consortium in Vietnam side buys and installs the Amorphous transformers utilized Hitachi Metal’s Amorphous metals and reports the operation status to YUKO KEISO by submitting evidence records. EVN SPC also required to report the annual operation records to YUKO KEISO for calculating annual CO2 reduction volumes.

Review

Support on developing methodology PDD

Support on developing methodology ・PDDMUMSS

GEC

21

Meeting the requirements of the state policies of Viet Nam on environment protection and energy savings, GHG emission

Strengthen the human/staff, scientific research , education and manufacturers

3

Increasing the role of the public and private enterprises in environmental protection , energy saving

Ability the diffusionand transfer ofadvanced low-carbon technologiesfrom Japan; topromote cooperativerelations in business

4

Third party entity Third party entity (TPE)

validates the project, and

verifies GHG emission reductions or

removals

Entity Sectoral scope for validation

Sectoral scope forverification

Designated date

TPE-VN-001

Lloyd’s Register Quality Assurance Limited

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13

23 Apr 14

TPE-VN-002

Japan Quality Assurance Organization

1, 3, 4, 5, 9, 10, 13, 14

1, 3, 4, 5, 9, 10, 13, 14

23 Apr 14

TPE-VN-003

Japan Management Association

1, 2, 3, 4, 6, 8, 9, 14 1, 2, 3, 4, 6, 8, 9, 14 27 May 14

TPE-VN-004

TÜV SÜD South Asia Private Limited

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15

27 May 14

TPE-VN-005

Deloitte Tohmatsu Evaluation and Certification Organization Co., Ltd

1, 2, 3, 4, 5, 8, 10, 12, 13, 15

1, 2, 3, 4, 5, 8, 10, 12, 13, 15

27 May 14

TPE-VN-006

TUV Rheinland (China) Ltd

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15

29 Mar 15

TPE-VN-007

EPIC Sustainability Services Private Limited (EPIC)

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15

29 Mar 15

TPE-VN-008

KBS Certification Services Pvt. Ltd

1, 3, 4, 5, 7, 9, 10, 12, 13, 15

1, 3, 4, 5, 7, 9, 10, 12, 13, 15

31 May 15

Vietnam-Japan JCM: Promoting

Handbooks and guidelines Workshops and forums for business sector

Vietnamese JCM website Training for JCM Secretariat and TPE candidates….

Reviewing and strengthening the project cycle procedures, credit distribution, credit trading and financial mechanism

Formulating stimulating policies for the business sector to join JCM

Developing the national registry for JCM projects

Forming technical advisory board for JCM Promoting JCM to stakeholders via

workshops, forums and training

Vietnam JCM SecretariatDepartment of Meteorology, Hydrology and Climate ChangeNo. 10, Ton That Thuyet, Hanoi, Viet NamTel: (+84-4) 37-955-116Fax: (+84-4)37-759-770JCM Secretariat email: info@jcmvietnam.vn

International JCM website: http://www.mmechanisms.org/e/index.html Vietnam JCM website: http://jcmvietnam.vn/