JOINT CIRCULAR No. 204/2010/TTLT-BTC-BTN&MT amends and supplements certain regulations regarding the management and use of CERs from CDM projects, particularly those using ODA funds. This circular provides detailed regulations on reporting, paying fees for selling CERs, and dividing ownership rights to CERs between the State and investors.
Scope of application
Owners of CERs from CDM projects, particularly those using ODA funds; the Ministry of Natural Resources and Environment; the Vietnam Environmental Protection Fund; the State Bank of Vietnam
Key points
- Owners of CERs must report and pay fees for selling CERs or transferring them back to the country within 15 working days at the latest.
- CERs from CDM projects using ODA funds are divided between the State and investors according to the ratio of budgetary funds allocated from the State budget and the remaining capital.
- The fee for selling CERs is determined by the rate of collection (%) multiplied by the quantity of CERs sold multiplied by the price of CERs sold, converted into Vietnamese dong based on the average transaction exchange rate.
- Domestic investors are responsible for paying the fee on behalf of foreign partners if foreign investors do not have a registered office in Vietnam.
- This circular takes effect 45 days after the date of signature.
🌐 Social impact of this document
- Positive impact: Clear regulations on the management and use of CERs ensure the State's interests in CDM projects.
- Negative impact: It may increase costs for businesses due to the need to pay fees for selling CERs.
❓ Frequently asked questions
How are CERs from CDM projects using ODA funds divided?
CERs are divided between the State and investors according to the ratio corresponding to the budgetary funds allocated from the State budget and the remaining capital invested in the CDM project.
What are the regulations on the fee for selling CERs?
The fee for selling CERs = Collection rate (%) x Quantity of CERs x Selling price of CERs (VND/CER), converted into Vietnamese dong based on the average transaction exchange rate.
Who must pay the fee for selling CERs?
Owners of CERs must report, declare, and pay the fee for selling CERs when selling or transferring them back to the country.
If a foreign investor does not have a registered office in Vietnam, who will pay the fee on their behalf?
Domestic investors are responsible for paying the fee on behalf of foreign partners if they do not have a registered office in Vietnam.
When does this circular take effect?
This circular takes effect 45 days after the date of signature.
Full text
JOINT CIRCULAR
Amending and supplementing certain contents of the Joint Circular No. 58/2008/TTLT-BTC-BTN&MT
dated July 4, 2008of the Ministry of Finance and the Ministry of Natural Resources and Environment guiding the implementation of certain provisions of Decision No. 130/2007/QD-TTg dated August 2, 2007 of the Prime Minister on certain financial mechanisms and policies for projects under the Clean Development Mechanism (CDM) Pursuant to Decision No. 130/2007/QD-TTg dated August 2, 2007 of the Prime Minister on certain financial mechanisms and policies for projects under the Clean Development Mechanism (hereinafter referred to as CDM projects);
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Implementing the guidance of the Prime Minister in Official Letter No. 1843/VPCP-QHQT dated March 23, 2010 of the Government Office regarding the establishment of financial mechanisms related to the purchase and sale of Certified Emission Reductions (CERs) certified for CDM projects using ODA funds for lending through banks and paying interest. The Ministry of Finance and the Ministry of Natural Resources and Environment amend and supplement certain contents of the Joint Circular No. 58/2008/TTLT-BTC-BTN&MT dated July 4, 2008 of the Ministry of Finance and the Ministry of Natural Resources and Environment guiding the implementation of certain provisions of Decision No. 130/2007/QD-TTg dated August 2, 2007 of the Prime Minister on certain financial mechanisms and policies for projects under the Clean Development Mechanism (hereinafter referred to as the Joint Circular No. 58/2008/TTLT-BTC-BTN&MT) as follows:
Article 1. Amend and supplement certain provisions of the Joint Circular No. 58/2008/TTLT-BTC-BTN&MT as follows:
1. Amend and supplement Clause 3 Section I as follows:
3. The owner of CERs when selling or transferring CERs back to Vietnam (for foreign investors) must report to the Ministry of Natural Resources and Environment and the Vietnam Environmental Protection Fund and complete the payment of the fee for selling CERs no later than fifteen working days from the date of transferring CERs to the buyer or transferring CERs back to Vietnam. For CDM projects using ODA funds, the obtained CERs shall be managed and used as follows:
3.1. For CDM projects using ODA funds fully allocated from the state budget, the obtained CERs belong to the State. The investor implementing the project is responsible for selling and depositing the entire proceeds from the sale of CERs into the Vietnam Environmental Protection Fund after deducting any selling costs (if any).
3.2. For CDM projects using ODA funds fully borrowed from domestic credit institutions or directly from the Ministry of Finance, the obtained CERs belong to the investor.
3.3. For CDM projects partially funded with ODA funds allocated from the state budget, the remaining part being self-funded or raised by the enterprise, or ODA funds borrowed from commercial banks or directly from the Ministry of Finance, the obtained CERs from the CDM project will be divided between the State and the investor according to the ratio corresponding to the proportion of ODA funds allocated from the state budget and the remaining capital invested in the CDM project.
CERs corresponding to the portion of ODA funds allocated from the state budget belong to the State. The investor implementing the project is responsible for selling and depositing the entire proceeds from the sale of State-owned CERs into the Vietnam Environmental Protection Fund after deducting any selling costs (if any).
2. Supplement Clause 6 at Section I as follows:
6. For CDM projects in the form of program activities under CDM (abbreviated in English as PoA), the investor and the construction unit participating in the program are responsible for paying management fees to the coordinating agency according to the agreement in the cooperation contract between the parties, and paying the fee for selling CERs as stipulated in the Joint Circular No. 58/2008/TTLT-BTC-BTN&MT and this Circular.
3. Amend and supplement Clause 3 Section II as follows:
3. The amount of the fee for selling CERs to be paid shall be determined as follows:
Amount of fee for selling CERs (VND) = Fee rate for selling CERs (%) x Quantity of CER sold or transferred back to Vietnam x Selling price of CER (VND/CER)
The quantity and selling price of CER are based on the contract for the purchase and sale of CERs signed. In case the owner of CERs does not sell but transfers CERs back to Vietnam, the quantity of CER for calculating the fee is the actual quantity of CERs transferred back to Vietnam by the owner of CERs, and the price of CER for determining the amount of fee to be paid is based on the market price at the time of transferring CERs back to Vietnam.
4. Amend and supplement Point 4.1 Clause 4 Section II as follows:
4.1. The owner of CERs is responsible for declaring the quantity of CER sold or transferred back to Vietnam, calculating and declaring the amount of fee to be paid (according to Form No. 01 issued together with this Circular); no later than fifteen working days from the date of transferring CERs to the buyer or transferring CERs back to Vietnam, they must pay the fee for selling CERs into the Vietnam Environmental Protection Fund based on the declared figures.
For CDM projects constructed and implemented according to the form prescribed in Clause 3 Article 4 of Decision No. 130/2007/QD-TTg, if foreign investors or consulting organizations building CDM projects do not have offices in Vietnam, then from the start of the project construction, domestic investors are responsible for agreeing and paying the fee for selling CERs on behalf of foreign partners.
5. Amend and supplement Point 4.3 Clause 4 Section II as follows:
4.3. The fee for selling CERs can be collected in foreign currency (converted) or in Vietnamese dong based on the conversion of foreign currency into Vietnamese dong at the average inter-bank exchange rate published by the State Bank of Vietnam at the time of collecting the fee.
This Circular takes effect forty-five days from the date of signature. During the implementation process, if any difficulties arise, please promptly reflect them to the Ministry of Finance and the Ministry of Natural Resources and Environment for research and resolution.
Article 2. Implementation clause
Ministry of Natural Resources and Environment
Ministry of Finance
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