Circular No. 17/2015/TT-BTNMT dated April 06, 2015 prescribing the formulation and implementation of projects under the joint crediting mechanism within the Vietnam-Japan cooperation framework

CIRCULAR

Prescribing the formulation and implementation of projects under the joint crediting mechanism within the Vietnam-Japan cooperation framework[1]

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

Pursuant to the Government’s Decree No. 21/2013/ND-CP of March 4, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Natural Resources and Environment;

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

At the proposal of the Director of the Hydrometeorology and Climate Change Department and the Director of the Legal Department;

The Minister of Natural Resources and Environment promulgates the Circular prescribing the formulation and implementation of projects under the joint crediting mechanism within the framework of Vietnam-Japan cooperation on low carbon growth.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular prescribes activities related to the formulation, registration and implementation of projects under the joint crediting mechanism within the framework of the Memorandum of Vietnam-Japan Cooperation on Low Carbon Growth.

Article 2.Subjects of application

This Circular applies to agencies, organizations and individuals involved in the formulation, registration and implementation of projects under the joint crediting mechanism within the framework of the Memorandum of Vietnam-Japan Cooperation on Low Carbon Growth.

Article 3.Interpretation of terms and abbreviations

In this Circular, the terms below are construed as follows:

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

a/ Carbon dioxide (CO₂);

b/ Methane (CH₄);

c/ Nitrous oxide (N₂O);

d/ Hydrofluorocarbons (HFCs);

dd/ Perfluorocarbons (PFCs);

e/ Sulfur hexafluoride (SF₆);

g/ Nitrogen trifluoride (NF₃).

2. Joint crediting mechanism (JCM) means a mechanism within the framework of the Vietnam-Japan cooperation on low carbon growth aiming to facilitate the investment, transfer and diffusion of technologies, products, systems, services and infrastructure emitting low carbon in different fields toward low carbon growth in Vietnam, support the realization of Japan’s international commitments on efforts to reduce greenhouse gas emissions, and contribute to international common goals in climate change response.

3. Joint Committee means a committee consisting of representatives of Vietnam and Japan that directs, coordinates and manages JCM implementation activities under the Memorandum of Vietnam-Japan Cooperation on Low Carbon Growth.

Members of the Joint Committee include representatives of Vietnam and Japan. The Joint Committee shall be led by two co-chairpersons being representatives of Vietnam and Japan. The Vietnamese side’s members of the Joint Committee include the co-chairperson being a Deputy Minister of Natural Resources and Environment and representatives of related ministries and sectors.

4. The Vietnamese side’s Secretariat means a working group consisting of a number of officials from the Hydrometeorology and Climate Change Department under the Ministry of Natural Resources and Environment who assist the Vietnamese side in the Joint Committee. The Joint Committee may employ the Secretariat in carrying out administrative procedures related to JCM projects prescribed in this Circular.

5. JCM project means a project implemented in the territory of the Socialist Republic of Vietnam with the aim of cutting greenhouse gas emissions or increasing greenhouse gas absorptions to support the fulfillment of Japan’s international commitments on greenhouse gas emission reduction as suitable to Vietnam’s conditions. A project shall be accredited as a JCM project when it is approved by the Joint Committee under Chapter IV of this Circular.

6. Project participant means an agency or organization having the legal entity status and operating in Vietnam or Japan that can directly formulate, and participate in the implementation of, JCM projects.

7. Project design document (PDD) means a detailed document on JCM project proposal which is prepared by a JCM project participant under the Joint Committee’s guidelines and comprises information on project design and project monitoring plan.

8. Third-party entity (TPE) of a JCM project means a fully eligible legal-entity organization designated by the Joint Committee and tasked by the JCM project participant to validate and verify JCM projects.

9. Validation means a process of independent evaluation of a project registered to become a JCM project which is conducted by the project’s TPE based on the PDD and the Joint Committee’s guidelines.

Validation report means a project’s PDD evaluation report prepared by the TPE based on the Joint Committee’s guidelines.

10. Verification means periodical independent evaluation and ex-post identification of greenhouse gas emission reductions or greenhouse gas absorptions under a JCM project which is conducted by a TPE based on the project participant’s monitoring reports and the Joint Committee’s guidelines.

Verification report means a report evaluating and identifying greenhouse gas emission reductions or greenhouse gas absorptions under a JCM project which is conducted by a TPE under the Joint Committee’s guidelines.

11. Monitoring means keeping track of, examining and evaluating project implementation and identifying greenhouse gas emission reductions or greenhouse gas absorptions under a JCM project which is conducted by a project participant based on the project’s PDD.

Monitoring report means a report keeping track of, examining and evaluating greenhouse gas emission reductions or greenhouse gas absorptions under a JCM project which is conducted by a project participant.

12. Methodology applicable to a JCM project means a method of calculating greenhouse gas emission reductions or greenhouse gas absorptions from JCM projects which is submitted to the Joint Committee for consideration and approval.

13. JCM website consists of information on JCM’s technical guidelines and an email address for receiving proposals of project participants, notifying TPE certification, notifying accreditation of JCM projects, and collecting public comments on methodologies.

14. Credit means a quantitative greenhouse-gas emission reduction or greenhouse gas absorption from a JCM project which is accredited by the Joint Committee and issued to a project participant based on the TPE’s verification report.

15. Accounts for receiving issued credits means accounts opened by Vietnam’s and Japan’s project participants for receiving issued credits.

16. Modalities of communication (MoC) means modalities of communication between JCM project participants and the Secretariat and the Joint Committee, covering contact information of organizations and individuals designated to act as focal points in communication.

17. Clean development mechanism (CDM) means a flexible financial mechanism under the Kyoto Protocol. The International Executive Committee on CDM shall designate independent operational entities to validate and verify CMD projects.

18. International Accreditation Forum (IAF) means an international association consisting of accreditation organizations and having the competence to assess conformity of organizations engaged in different fields, ensuring that accredited organizations have full capacity to perform the jobs in their fields.

Article 4.Conditions and fields for implementation of JCM projects

1. Conditions for a project to become a JCM project:

a/ Being formulated in accordance with current law and in line with the strategy and master plan in a relevant field of a ministry, sector or locality and contributing to ensuring Vietnam’s sustainable development;

b/ Being formulated and implemented on a voluntary basis and in compliance with treaties to which the Socialist Republic of Vietnam is a contracting party;

c/ Being implemented in the Vietnamese territory with the participation of a Japanese counterpart.

2. Fields for implementation of JCM projects:

a/ Energy production;

b/ Energy transmission;

c/ Energy consumption;

d/ Agriculture;

dd/ Waste handling and disposal;

e/ Afforestation and reforestation;

g/ Chemical industry;

h/ Manufacturing industries;

i/ Construction;

k/ Transport;

l/ Mining and mineral production;

m/ Metal production;

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

o/ Emissions from production and consumption of halocarbons and sulfur hexafluoride;

p/ Solvents use;

q/ Other fields conformable with the Joint Committee’s guidelines and Vietnam’s law.

Article 5.General process of formulating, registering and implementing JCM projects and issuance of credits

1. The project participant develops and proposes a methodology to the Joint Committee for approval;

2. The Joint Committee approves the proposed methodology;

3. The project participant makes the project’s PDD;

4. The TPE validates the PDD at the request of the project participant;

5. The project participant submits the project to the Joint Committee for registration;

6. After a project is approved as a JCM project, the project participant shall implement and monitor it;

7. The TPE validates the project;

8. Based on the request of the project participant and the TPE’s validation report, the Joint Committee shall decide on the number of credits and send credit issuance requests to the governments of the two countries for issuance of credits to the project participants through credit issuance accounts.

Chapter II

DESIGNATION AS THIRD PARTY ENTITY

Article 6.Designation as a TPE

1. An organization shall send by email a dossier of request for designation as a TPE in Vietnamese and English, which must comprise:

a/ A written request for designation as a TPE (made according to the forms provided in Appendices 1 and 1a issued together with this Circular).

b/ ISO 14.065 certificate granted by the IAF based on ISO 14.064-2; or certificate that the organization is an operational entity under the CDM.

2. Within seven (7) days after receiving a dossier of request for designation as a TPE from an organization, the Secretariat shall notify via email the dossier examination result under regulations.

For an incomplete dossier, the Secretariat shall send a notice only once to the organization for completing the dossier; for a complete dossier, the Secretariat shall submit it to the Joint Committee for consideration and decision.

3. After receiving a dossier from the Secretariat, the Joint Committee shall examine and validate it and issue a decision to designate or not to designate the organization as a TPE. In case of designation refusal, the Joint Committee shall clearly state the reason.

4. The Secretariat shall send to the organization via email the Joint Committee’s decision to designate the organization as a TPE; in case of refusing to designate, it shall clearly state the reason. The Secretariat shall publish the decision designating the organization as a TPE and information about such organization on the JCM website.

5. TPEs may operate in the registered fields already licensed by the International Executive Committee on CDM or one of the IAF’s members. A TPE that wishes to add its fields of operation shall send an application (made according to the forms provided in Appendices No. 1 and 1a issued together with this Circular) to the Secretariat, describing the fields of operation to be added. The Secretariat shall submit the application to the Joint Committee for consideration and decision to designate or not to designate the TPE operating in such fields.

Article 7.Non-designation as a TPE

1. A TPE shall no longer be designated when the ISO 14.065 certificate granted by the IAF based on ISO 14.064-2 or the certificate that the organization is an operational entity under the CDM ceases to be effective.

2. The TPE shall notify the Secretariat and the JCM project’s stakeholders when it is no longer designated but continue to perform and fulfill the responsibilities already committed with the project participants under the Joint Committee’s decision.

3. The Secretariat shall submit to the Joint Committee for decision the operation of a TPE when it is no longer designated.

Article 8.Voluntary withdrawal of TPE designation

1. A TPE shall send via email to the Secretariat a request for voluntary withdrawal of TPE designation in several or all fields. Such request must specify:

- Name of the TPE requesting voluntary withdrawal of TPE designation;

- Digital signature of the TPE’s representative;

- Fields in which the voluntary withdrawal of TPE designation is requested;

- Effective time of the voluntary withdrawal of TPE designation.

2. When requesting voluntary withdrawal of TPE designation in several or all fields of its operation, a TPE shall notify such to the Secretariat and the JCM project’s stakeholders.

3. The Secretariat shall submit to the Joint Committee for decision the operation of a TPE that requests voluntary withdrawal of TPE designation.

Chapter III

PROPOSAL AND APPROVAL OF METHODOLOGIES

Article 9.Proposal and approval of methodologies

1. Organizations and individuals of Japan, Vietnam or JCM project participants are allowed to propose methodologies (below referred to as proponents).

The proponent shall send via email a dossier of request for approval of a methodology in Vietnamese and English (made according to the forms provided in Appendices No. 2 and 2a issued together with this Circular) to the Secretariat.

2. Within seven (7) days after receiving a dossier, the Secretariat shall notify via email the proponent of the completeness of the dossier.

For an incomplete dossier, the Secretariat shall send a notice only once to the proponent for completing the dossier.

3. For a complete dossier, the Secretariat shall publish the proposed methodology on the JCM website and collect public comments via that website within fifteen (15) days after publishing it. After this time limit, the Secretariat shall summarize the comments and submit them to the Joint Committee for consideration.

4. Within sixty (60) days after finishing the collection of public comments, the Joint Committee shall consider and approve proposed methodologies.

If further information is needed, the Joint Committee shall request the proponent to explain and add necessary information for consideration and decision to approve or disapprove a methodology. In case of disapproval, the Joint Committee shall clearly state the reason.

5. The Secretariat shall send via email to the proponent the Joint Committee’s decision approving or disapproving a methodology. For an approved methodology, within five (5) days after the issuance of the Joint Committee’s decision, the Secretariat shall publish information and documents on such methodology on the JCM website.

6. The proponent may propose again disapproved methodologies according to the above order and procedures and explain its improvement of the methodologies after they are disapproved.

Article 10.Revision of methodologies

1. During project implementation, revision of methodologies may be requested. A request for revision of a methodology shall be made in Vietnamese and English (according to the forms provided in Appendices No. 3 and 3a issued together with this Circular) and sent via email to the Secretariat for submission to the Joint Committee.

2. The order and procedures for requesting revision of methodologies for approval must comply with Article 9 of this Circular.

Chapter IV

REGISTRATION AND APPROVAL OF PROJECTS

Article 11.Registration and approval of projects

1. The project participant shall send via email a project registration dossier to the Secretariat for consideration and submission to the Joint Committee. The dossier must comprise:

a/ A draft PDD in Vietnamese and English (made according to the forms provided in Appendices No. 4 and 4a issued together with this Circular), enclosed with a monitoring plan sheet (made according to the forms provided in Appendices No. 5 and 5a issued together with this Circular);

b/ A MoC in Vietnamese and English (made according to the forms provided in Appendices No. 6 and 6a issued together with this Circular).

2. The Secretariat shall assign a reference number to a project and notify its receipt of the dossier together with the project’s reference number to the project participant.

3. The project registration dossier and expected TPE shall be published on the JCM website for public comment within thirty (30) days. The Secretariat shall notify the project’s address on the JCM website to the project participant and TPE.

Public comments shall be sent in Vietnamese and English via the JCM website. Commenters shall supply their names and contact addresses. The TPE shall verify the truthfulness of the comments and eliminate unreasonable comments.

4. After the time limit for collecting public comments, the Secretariat shall summarize the comments and submit a dossier together with such comments to the Joint Committee.

5. The project participant shall request the TPE to validate the project dossier as guided. If the dossier is unsatisfactory, the TPE shall notify the validation result to the project participant for completion until the dossier is satisfactory. The TPE may validate the project dossier before, during or after the collection of public comments.

6. If the dossier is satisfactory, the project participant shall send via email to the Secretariat:

a/ The project registration dossier prescribed in Clause 1 of this Article, enclosed with the project registration request in Vietnamese and English (made according to the forms provided in Appendices No. 8 and 8a issued together with this Circular);

b/ The TPE’s validation report in Vietnamese and English (made according to the forms provided in Appendices No. 7 and 7a issued together with this Circular), and other relevant papers.

7. After receiving a project registration dossier, the Secretariat shall notify via email its receipt of the dossier to the project participant and publish relevant information on the project on the JCM website.

Within seven (7) days receiving a dossier, the Secretariat shall notify via email the project participant and TPE of the validity and completeness of the dossier. If further information is needed, the Secretariat shall notify such to the project participant and TPE for adding information.

For a valid and complete dossier, the Secretariat shall submit it to the Joint Committee for consideration and decision on project registration.

8. After receiving a project registration dossier from the Secretariat, the Joint Committee shall examine it and issue a decision approving the project; in case of disapproving the project, it shall clearly state the reason.

Article 12.Change of PDD

1. When changing the contents of a registered PDD, the project participants shall send via email a PDD change request to the Secretariat for submission to the Joint Committee for consideration and approval. The dossier must comprise:

a/ A PDD change request made in Vietnamese and English (according to the forms provided in Appendices No. 9 and 9a issued together with this Circular);

b/ A draft changed PDD in Vietnamese and English (according to the forms provided in Appendices No. 4 and 4a issued together with this Circular);

c/ The TPE’s validation report in Vietnamese and English (according to the forms provided in Appendices No. 7 and 7a issued together with this Circular).

2. The order and procedures for registration of changes must comply Clauses 3 thru 8, Article 11 of this Circular.

Article 13.Project registration withdrawal or project withdrawal

1. During project implementation, the project participants may send via email a project registration request withdrawal in Vietnamese and English (made according to the forms provided in Appendices No. 11 and 11a issued together with this Circular) to the Secretariat.

2. In case of project withdrawal, a project participant shall send via email a project withdrawal request in Vietnamese and English (made according to the forms provided in Appendices No. 12 and 12a issued together with this Circular) and a modalities of communication statement in Vietnamese and English (made according to the forms provided in Appendices No. 10 and 10a issued together with this Circular) to the Secretariat.

3. Upon receiving a request from the project participant, the Secretariat shall submit it to the Joint Committee for consideration and decision.

4. The Secretariat shall publish the Joint Committee’s decision on its website, together with the project participant’s information relating to project registration withdrawal or project withdrawal.

5. The project participant shall fulfill the committed obligations and take responsibility before the stakeholders under current law for its decision on project registration withdrawal or project withdrawal.

Chapter V

IMPLEMENTATION OF, ISSUANCE OF CREDITS TO, PROJECTS

Article 14.Project implementation

1. After obtaining a registration certificate granted by the Joint Committee for a project, the project participants shall implement and monitor the project’s activities under the approved PDD.

2. During project implementation, the project participants shall comply with the JCM’s current regulations on validation and verification.

Article 15.Issuance of credits

1. An organization shall send via email a dossier of credit issuance request to the Secretariat, which must comprise:

a/ A credit issuance request made by the project participant in Vietnamese and English (according to the forms provided in Appendices No. 13 and 13a issued together with this Circular);

b/ The project owner’s project monitoring report;

c/ The TPE’s project validation report in Vietnamese and English (made according to the forms provided in Appendices No. 14 and 14a issued together with this Circular).

2. After receiving a dossier of credit issuance request, the Secretariat shall notify via email its receipt of the request to the project maker.

3. Within seven (7) days after receiving a dossier, the Secretariat shall notify via email the project maker and TPE of the validity and completeness of the dossier.

4. For a complete and valid dossier, the Secretariat shall submit it to the Joint Committee for consideration and decision on the number of credits to be issued.

5. After obtaining the Joint Committee’s decision, the Secretariat shall notify via email the credit issuance result to the project participants and TPE. Information on credit issuance shall be published on the JCM website.

Article 16.Credit issuance request withdrawal

1. After submitting a dossier of credit issuance request, the project participant may send via email an application for credit issuance request withdrawal in Vietnamese and English (made according to the forms provided in Appendices No. 15 and 15a issued together with this Circular) to the Secretariat.

2. The Secretariat shall submit such application to the Joint Committee for decision.

3. The project participant shall take responsibility before the stakeholders for damage caused by its decision on credit issuance request withdrawal.

Chapter VI

EFFECT

Article 17.Effect

This Circular takes effect on May 22, 2015, and applies until a competent agency issues a decision replacing it.

Article 18.Organization of implementation

1. Responsibilities of the Hydrometeorology and Climate Change Department, the standing agency of Vietnamese side in the Joint Committee:

a/ To direct and urge the Secretariat to assist the Joint Committee in monitoring and guiding the stakeholders regarding development of methodologies, designation as TPEs, registration of JCM projects, monitoring of implementation of, and issuance of credits to, projects in accordance with this Circular;

b/ To assume the prime responsibility for, and coordinate with related agencies and units in, annually devising plans and examining the implementation of current regulations on JCM; to handle within its competence or propose competent authorities to handle violations concerning project implementation activities in accordance with this Circular and other relevant regulations.

2. Provincial-level Natural Resources and Environment Departments shall assist People’s Committees at all levels and JCM project makers and implementers in accordance with this Circular and other relevant regulations.

3. Ministers, heads of ministerial-level agencies, chairpersons of provincial-level People’s Committees and related agencies, organizations and individuals shall implement this Circular.

Any problems arising in the course of implementation of this Circular should be reported to the Ministry of Natural Resources and Environment for consideration and settlement.

For the Minister of
Natural Resources and Environment
Deputy Minister
TRAN HONG HA

* All appendices to this Circular are not translated.-