Circular No. 17/2015/TT-BTNMT provides for the development and implementation of projects under the Joint Crediting Mechanism (JCM) within the framework of cooperation between Vietnam and Japan.

CIRCULAR

Regarding the construction and implementation of projects under Cthe Joint Crediting Mechanism within the framework of cooperation Vstrict N |||Royal Government of N |||ật Bn lFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.

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Pursuant to the Law on Ratification, Accession and Implementation of International Treaties No. 41/2005/QH11 dated June 14, 2005 of the National Assembly of the Socialist Republic of Vietnam;

Pursuant to Decree No. 21/2013/NĐ-CP dated March 4, 2013, promulgated by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

Pursuant to the Memorandum of Cooperation on Low-Carbon Growth between Vietnam and Japan dated July 2, 2013;

At the proposal of the Director of the Meteorology, Hydrology, and Climate Change Department and the Legal Affairs Department;

The Minister of Natural Resources and Environment issues this Circular prescribing the construction and implementation of projects under the Joint Crediting Mechanism within the framework of the Memorandum of Cooperation on Low-Carbon Growth between Vietnam and Japan.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular prescribes activities related to the construction, registration, and implementation of projects under the Joint Crediting Mechanism within the framework of the Memorandum of Cooperation on Low-Carbon Growth between Vietnam and Japan.

Article 2. Applicability

This Circular applies to agencies, organizations, and individuals involved in the construction, registration, and implementation of projects under the Joint Crediting Mechanism within the framework of the Memorandum of Cooperation on Low-Carbon Growth between Vietnam and Japan.

Article 3. Explanation of Terms and Abbreviations

In this Circular, the following terms are understood as follows:

1. Greenhouse gases are gases in the atmosphere that cause global warming, including the following gases:

a) Carbon dioxide (CO2);

b) Methane (CH4);

c) Nitrous oxide (N2O);

d) Hydrofluorocarbons (HFCs);

đ) Perfluorocarbons (PFCs);

e) Sulphur hexafluoride (SF6);

g) Nitrogen trifluoride (NF3).

2. Joint Crediting Mechanism (JCM) is a mechanism within the framework of low-carbon development cooperation between Vietnam and Japan aimed at promoting investment, technology transfer, and dissemination of low-carbon technologies, products, systems, services, and infrastructure in various sectors to support low-carbon development in Vietnam, assist Japan in fulfilling its international commitments to reduce greenhouse gas emissions, and contribute to the common international goal of addressing climate change.

3. Joint Committee (JC) is a committee comprising representatives from Vietnam and Japan responsible for directing, coordinating, and managing activities implementing the JCM according to the Memorandum of Cooperation on Low-Carbon Growth between Vietnam and Japan.

Members of the JC include representatives from Vietnam and Japan. The JC is headed by two co-chairs, one each from Vietnam and Japan. On the Vietnamese side, members participating in the JC include the Deputy Minister of Natural Resources and Environment and representatives of relevant ministries and sectors.

4. The Secretariat of Vietnam is a working group consisting of some officials from the Meteorology, Hydrology and Climate Change Department of the Ministry of Natural Resources and Environment assisting the Vietnamese side of the JC. The JC uses the Secretariat in the process of administrative procedures related to JCM projects as prescribed in this Circular.

5. A JCM project is a project implemented on the territory of the Socialist Republic of Vietnam with the aim of reducing greenhouse gas emissions or enhancing their absorption to support Japan's international commitment to mitigate greenhouse gas emissions and be consistent with Vietnam's national conditions. A project is recognized as a JCM project when approved by the JC according to Chapter IV of this Circular.

6. Project participants are agencies and organizations with legal personality operating in Vietnam and Japan that can directly construct or participate in implementing JCM projects.

7. Project Design Document (PDD) is a detailed document about the proposed JCM project prepared by the JCM project participant according to the guidance of the JC, including information on project design and monitoring plan.

8. Third Party Entity (TPE) of the JCM project is a legal entity qualified and designated by the JC, and upon request from the JCM project participant, performs the task of reviewing and auditing JCM projects.

9. Review is the independent evaluation process of a registered project to become a JCM project conducted by the TPE based on the PDD and according to the guidelines of the JC.

The review report is a report evaluating the PDD of the project carried out by the TPE based on the guidelines of the JC.

10. Verification is the periodic independent assessment and post-project determination of the amount of greenhouse gas emission reductions or absorptions obtained from a JCM project conducted by the TPE based on the monitoring reports of the project participant and according to the guidelines of the JC.

The verification report is a report evaluating and determining the level of greenhouse gas emission reductions or absorptions of a JCM project carried out by the TPE according to the guidelines of the JC.

11. Monitoring is the tracking, inspection, and evaluation of project implementation and determination of the amount of greenhouse gas emission reductions or absorptions of a JCM project conducted by the project participant based on the project's PDD.

The monitoring report is a report tracking, inspecting, and evaluating the amount of greenhouse gas emission reductions and absorptions of a JCM project carried out by the project participant.

12. Methodology applied to JCM projects is the method of calculating greenhouse gas emission reductions or absorptions obtained from JCM projects, submitted to the JC for consideration and approval.

13. The JCM website includes technical guidance information for JCM and an email box to receive proposals from project participants, notifications of TPE certification, announcements of recognized JCM projects, and public consultations on methodologies.

14. Credits are quantified amounts of greenhouse gas emission reductions or absorptions obtained from JCM projects, recognized and issued to project participants by the JC based on the TPE's verification report.

15. Credit account is an account opened by Vietnamese and Japanese project participants to receive issued credits.

16. Mode of Communication (MoC) is the communication method between organizations participating in JCM projects and the Secretariat and JC, including contact information for designated liaison persons.

17. Clean Development Mechanism (CDM) is a flexible financial mechanism under the Kyoto Protocol. The Executive Board of the CDM designates independent operational entities to review and verify projects under the CDM mechanism.

18. The International Accreditation Forum (IAF) is an international association comprising accreditation organizations authorized to assess the competence of organizations operating in various fields, ensuring that accredited organizations have the necessary capacity to perform work in their respective fields.

Article 4. Conditions and sectors for implementing Joint Crediting Mechanism (JCM) projects

1. Conditions for becoming a JCM project

a) It must be a project established in accordance with current laws, consistent with the strategies and plans in relevant sectors of ministries, agencies, and localities, and contribute to sustainable development in Vietnam;

b) The establishment and implementation of the project must be voluntary and comply with international treaties to which the Socialist Republic of Vietnam is a party;

c) It must be implemented on Vietnamese territory and involve Japanese partners.

2. Sectors for implementing JCM projects

a) Energy production;

b) Energy transmission;

c) Energy consumption;

d) Agriculture;

đ) Waste management;

e) Reforestation and afforestation;

g) Chemical industry;

h) Manufacturing industry;

i) Construction;

k) Transportation;

l) Mining and mineral processing;

m) Metal production;

n) Emissions from fuel (solid fuels, oil, and gas);

o) Emissions from the production and consumption of Halocarbons and sulfur hexafluoride;

p) Solvent use;

q) Other sectors in line with guidelines from the Joint Committee and Vietnamese law.

Article 5. General procedures for establishing, registering, implementing JCM projects, and issuing credits

1. Project participants develop and submit the methodology to the Joint Committee for approval;

2. The Joint Committee approves the methodology;

3. Project participants develop the Project Design Document (PDD) of the project;

4. A third party reviews the PDD at the request of the project participants;

5. Project participants submit the project to the Joint Committee for registration;

6. After the project is approved as a JCM project, project participants implement and monitor the project;

7. A third party conducts a review of the project;

8. Based on the project participants' request and the third-party reviewer's report, the Joint Committee decides on the number of credits and sends a request for credit issuance to the governments of both countries through the credit account.

Chapter II

THIRD-PARTY REVIEWERS

Article 6. Recognition of Third-Party Reviewers

1. Organizations and individuals submit applications for recognition of third-party reviewers (TPEs) via email in both Vietnamese and English. The application includes:

a) An application form for TPE recognition (in accordance with the model specified in Appendix 1 and 1a issued together with this Circular);

b) An ISO 14065 certification issued by the IAF according to ISO 14064-2 standards; or a certification as a professional organization under the Clean Development Mechanism (CDM).

2. Within seven (07) days of receiving the TPE recognition application, the Secretariat will notify the applicant via email of the result of the application review.

For incomplete applications, the Secretariat will send a single notification to the organization or individual to complete the application; for complete applications, the Secretariat will submit them to the Joint Committee for examination and decision.

3. Upon receipt of the application from the Secretariat, the Joint Committee examines, evaluates, and issues a decision to recognize or not recognize the TPE. In cases where recognition is denied, the Joint Committee will announce the reasons.

4. The Secretariat will notify the organization via email of the Joint Committee's decision to recognize or not recognize the TPE, along with the reasons. The recognition decision and information about the TPE will be published on the JCM's electronic information website.

5. TPEs are permitted to operate in registered sectors that have been licensed to operate by the International Executive Board of the CDM or one of the members of the IAF. If a TPE wishes to expand its operational scope, it must submit an Application (in accordance with the model specified in Appendix 1 and 1a issued together with this Circular) to the Secretariat, describing the additional operational sector. The Secretariat will then submit it to the Joint Committee for examination and decision on whether to recognize the TPE's operation in this sector.

Article 7. Non-recognition of Third Party

1. The third party shall no longer be recognized when the ISO 14.065 certification issued by IAF according to the ISO 14.064-2 standard or the certification as a CDM Operational Entity expires.

2. The third party shall notify the Secretariat and relevant parties to the JCM project when the TPE is no longer recognized but must continue to fulfill its committed responsibilities with the project implementing parties as decided by the Board.

3. The Secretariat shall submit to the Board for a decision on the operation of the TPE when the TPE is no longer recognized.

Article 8. Voluntary Withdrawal of Recognition of Third Party

1. The third party shall send a request for voluntary withdrawal of recognition of the TPE in certain or all areas of activity related to the Secretariat via email, including the following information:

- Name of the TPE wishing to voluntarily withdraw recognition;

- Electronic signature of the representative;

- Areas of voluntary withdrawal of recognition;

- Effective date of the voluntary withdrawal of recognition.

2. When voluntarily withdrawing recognition in certain or all areas of activity, the TPE shall notify the Secretariat and relevant parties to the JCM project.

3. The Secretariat shall submit to the Board for a decision on the operation of the TPE when the TPE voluntarily withdraws recognition.

Chapter III

PROPOSAL AND APPROVAL OF METHODOLOGICAL APPROACHES

Article 9. Proposal and Approval of Methodological Approaches

1. Organizations and individuals permitted to propose methodological approaches (referred to as "proposing parties") include organizations and individuals from Japan, Vietnam, or participating in the JCM project.

The proposing party shall submit the application for approval of the methodological approach in both Vietnamese and English (in accordance with the form prescribed in Appendix 2 and 2a attached hereto) to the Secretariat via email.

2. Within seven (07) days from the date of receipt of the application, the Secretariat shall notify the proposing party via email regarding the completeness of the application.

In case the application is incomplete as required, the Secretariat shall notify the proposing party once only to supplement the missing information.

3. For applications that meet the requirements, the Secretariat shall publish the proposed methodological approach on the JCM's electronic information website and solicit public comments within fifteen (15) days. Public comments shall be submitted through the JCM's electronic information website. After the public comment period, the Secretariat shall compile the comments and submit them to the Board for consideration.

4. Within sixty (60) days from the end of the public comment period, the Board shall consider and approve the proposed methodological approach.

If additional information is needed, the Board may require the proposing party to provide explanations and necessary information supplements for review and make a decision on whether to approve or not approve the methodological approach. In cases where the methodological approach is not approved, the Board shall announce the reasons.

5. The Secretariat shall notify the proposing party via email about the Board's decision to approve or not approve the methodological approach. For approved methodological approaches, within no more than five (05) days from the Board's decision, the Secretariat shall post the relevant information and documents on the JCM's electronic website.

6. The proposing party may resubmit non-approved methodological approaches according to the above procedures accompanied by explanations addressing the reasons for non-approval.

Article 10. Amending and supplementing the methodology

1. During the implementation of the project, agencies, organizations, individuals, or parties involved in the project may propose amendments and supplements to the methodology. The application for amending the methodology shall be submitted in both Vietnamese and English (in accordance with the form prescribed in Appendix 3 and 3a issued together with this Circular) and sent to the Secretariat via email for submission to the Joint Council.

2. The procedure for proposing approval of the amended and supplemented methodology shall follow the procedures stipulated in Article 9 of this Circular.

Chapter IV

REGISTRATION AND APPROVAL OF PROJECTS

Article 11. Registration and Approval of Projects

1. Parties involved in the project shall submit the registration dossier for the project to the Secretariat via email for review and submission to the Joint Council. The dossier includes:

a) Draft PDD in Vietnamese and English (in accordance with the form prescribed in Appendix 4 and 4a issued together with this Circular), accompanied by a monitoring plan table (in accordance with the form prescribed in Appendix 5 and 5a issued together with this Circular);

b) MoC in Vietnamese and English (in accordance with the form prescribed in Appendix 6 and 6a issued together with this Circular).

2. The Secretariat shall assign a reference number for the project and notify the parties involved in the project of the receipt of the dossier along with the project's reference number.

3. The project registration dossier and anticipated TPE shall be posted on the JCM’s electronic information website for public comment within thirty (30) days. The project address on the JCM’s website will be notified to the parties involved in the project and TPE by the Secretariat.

Public comments must be submitted in both Vietnamese and English through the JCM’s website. Commenters provide their name and personal or organizational contact information. TPE will examine the authenticity of the comments and remove those that are not authentic.

4. After the public comment period, the Secretariat shall compile public comments on the project and submit the dossier along with the comments to the Joint Council.

5. The parties involved in the project request TPE to conduct a review of the project dossier according to the guidelines. In case the dossier does not meet the review requirements, TPE will inform the project developer of the review results so they can make corrections and supplements until the requirements are met. The TPE’s review of the project dossier may occur before, during, and after the public comment period.

6. If the dossier meets the review requirements, the parties involved in the project shall send the following to the Secretariat via email:

a) The project registration dossier as stipulated in Clause 1 of this Article, accompanied by the project registration application in Vietnamese and English (in accordance with the form prescribed in Appendix 8 and 8a issued together with this Circular);

b) TPE’s review report in Vietnamese and English (in accordance with the form prescribed in Appendix 7 and 7a issued together with this Circular) and other related documents.

7. Upon receiving the project registration dossier, the Secretariat shall notify the parties involved in the project via email of the receipt of the dossier and post relevant project information on the JCM’s electronic information website.

Within seven (07) days, the Secretariat shall notify the parties involved in the project and the TPE of the project regarding the completeness and validity of the dossier via email. In cases where additional information is required, the Secretariat shall notify the parties involved and the TPE of the project to resubmit.

For valid and complete dossiers, the Secretariat shall submit them to the Joint Council for consideration and decision on project registration.

8. Upon receiving the project registration dossier from the Secretariat, the Joint Council shall consider and issue a decision to approve or not approve the project, along with reasons.

Article 12. Amending and Supplementing the Project Design Document

1. When changing the contents of the Project Design Document (PDD) that has been registered, the project participants shall submit the amendment and supplementation dossier to the Secretariat via email for the Board's consideration and resolution. The dossier includes:

a) A request form in Vietnamese and English (as prescribed in Appendix 9 and 9a issued together with this Circular);

b) Draft of the amended and supplemented PDD in Vietnamese and English (as prescribed in Appendix 4 and 4a issued together with this Circular);

c) A report on the review of the PDD by the Third Party Evaluator (TPE) in Vietnamese and English (as prescribed in Appendix 7 and 7a issued together with this Circular).

2. The registration procedure for amending and supplementing shall be carried out according to the procedures from Clause 3 to Clause 8 of Article 11 of this Circular.

Article 13. Withdrawal of Registration or Withdrawal from the Project

1. During the implementation of the project, the participants may submit a request to withdraw the project registration in Vietnamese and English (as prescribed in Appendix 11 and 11a issued together with this Circular) via email to the Secretariat.

2. In case of withdrawal from the project, the participant shall submit a request to withdraw from the project in Vietnamese and English (as prescribed in Appendix 12 and 12a issued together with this Circular) and a request to change the Memorandum of Cooperation (MoC) content in Vietnamese and English (as prescribed in Appendix 10 and 10a issued together with this Circular) via email to the Secretariat.

3. After receiving the request from the project participant, the Secretariat shall present it to the Board for consideration and issue a decision.

4. The Secretariat shall publish the Board's decision on its website along with relevant information regarding the withdrawal of project registration or withdrawal from the project by the participants.

5. The project participants must fulfill their committed obligations and bear responsibility towards related parties as stipulated by current laws due to their decision to withdraw the registration or withdraw from the project.

Chapter V

IMPLEMENTATION AND ISSUANCE OF CREDITS FOR THE PROJECT

Article 14. Implementation of the Project

1. After the project is granted a registration certificate by the Board, the project participants shall organize the implementation and supervision of project activities according to the approved PDD.

2. During the implementation of the project, the participants must comply with current regulations on the assessment and verification by the Joint Committee for Mitigation (JCM).

Article 15. Issuance of Credits

1. The organization shall submit a credit issuance application dossier to the Secretariat via email. The dossier includes:

a) A credit issuance request form of the project participant in Vietnamese and English (as prescribed in Appendix 13 and 13a issued together with this Circular);

b) A project monitoring report conducted by the project owner;

c) A project verification report by the TPE in Vietnamese and English (as prescribed in Appendix 14 and 14a issued together with this Circular).

2. Upon receipt of the credit issuance application dossier, the Secretariat shall notify the project developer via email about the acceptance of the dossier.

3. Within seven (07) days, the Secretariat shall notify the project developer and the TPE of the project via email about the completeness and validity of the dossier.

4. For complete and valid dossiers, the Secretariat shall present them to the Board for consideration and decision on the amount of credits to be issued.

5. After the Board's decision, the Secretariat shall notify the project participants and the TPE via email of the credit issuance results. Information on credit issuance will be published on the JCM's electronic information website.

Article 16. Revocation of Credit Application Requests

1. After submitting the application dossier for credit issuance, the project participant may submit a revocation request for the credit issuance application in both Vietnamese and English (in accordance with the form prescribed in Appendices 15 and 15a issued together with this Circular) via email to the Secretariat.

2. The Secretariat shall present the revocation request for credit issuance to the Board for decision.

3. The project participant shall be responsible to the relevant parties for any losses caused by the revocation decision on the credit issuance application.

Chapter VI

EFFECTIVE DATE

Article 17. Effective Date

This Circular takes effect from May 22, 2015, and shall be implemented until replaced by a decision of the competent authority.

Article 18. Implementation Organization

1. Responsibilities of the General Department of Meteorology, Hydrology and Climate Change, the Permanent Office of the Board in Vietnam:

a) Directing and urging the Secretariat to assist the Board in monitoring and guiding the relevant parties in developing methodologies, designating TPEs, registering JCM projects, supervising implementation, and issuing credits for projects in accordance with this Circular;

b) Taking the lead and coordinating with related agencies and units annually to develop plans and conduct inspections on the implementation of current regulations regarding JCM; handling violations within their authority or recommending higher authorities to resolve issues concerning the implementation of projects stipulated in this Circular and other relevant laws.

2. Provincial Departments of Natural Resources and Environment have the responsibility to assist People's Committees at all levels and support the parties in building and implementing JCM projects in accordance with this Circular and other relevant laws.

3. The Ministers, Heads of Ministries equivalent to Ministries, Chairpersons of People's Committees of provinces and centrally governed cities, and related agencies, organizations, and individuals shall be responsible for enforcing the provisions of this Circular. Any difficulties encountered during implementation should be reported to the Ministry of Natural Resources and Environment for consideration and resolution.

During implementation, if there are any difficulties, organizations and individuals are requested to reflect them to the Ministry of Natural Resources and Environment for review and resolution./.