The Memorandum of Understanding (MoU) on Joint Crediting Mechanism (JCM) was signed between the Vietnam Ministry of Natural Resources and Environment (MONRE) and Japan Ministry of Environment yesterday, October 14.
The JCM is referred to as a cooperation system that Japan proposes to partners of developing countries to reduce greenhouse gases (GHG) emissions under the framework of the Paris Agreement. In this regard, the result of the reduction is counted for both Japan and partner countries. The figure below presents how the JCM operates:
The Joint Crediting Mechanism (JCM) of Japan. Source of figure: https://www.carbon-markets.go.jp
Since 2011, Japan has implemented the JCM with developing countries including Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, Lao PDR, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand, and the Philippines. Besides, Japan has collaborated with ASEAN since 2018 in the field of transparency, minimization, and adaption within the program on actions toward climate change Japan – ASEAN.
Vietnam signed the first MoU on JCM with Japan in July 2013 and extended the cooperation until 2020. Since then, Japan has supported Vietnam to conduct the JCM with about 35 million USD and 4,415 carbon credits provided (one carbon credit equal to one ton of carbon dioxide).
The MONRE expects that, via the JCM cooperation, Japan will promote Vietnam to develop a low-carbon, green, environmentally friendly economy. Specifically, the implementation of JCM also contributes to the realization of the revised Environmental Protection Law 2020 and guidance documents, especially concerning regulations on the reduction of GHG emissions, establishing the foundation for future carbon market development in Vietnam.
The Minister of MONRE, Trần Hồng Hà, mentioned that Vietnam will declare higher commitment to the reduction of GHG emissions by 2030 compared to the updated version of the Nationally Determined Contribution at the upcoming COP26 conference in Glasgow.
Sources & further information: “Vietnam, Japan sign MoU on low-carbon growth” at https://en.vietnamplus.vn, “Việt Nam – Nhật Bản: Ký kết hợp tác về tăng trưởng các-bon thấp giai đoạn 2021-2030” at https://baotainguyenmoitruong.vn, and “Recent Development of the Joint Crediting Mechanism (JCM)” at https://www.carbon-markets.go.jp, accessed on 15 October 2021.