Always welcome foreign businesses to invest in new technology to create carbon credits.

Member of the Party Central Committee, Minister of Natural Resources and Environment Do Duc Duy received and worked with Chairman and General Director of Erex Japan Joint Stock Company Mr. Honna Hitoshi.

On the afternoon of September 23, Member of the Party Central Committee, Minister of Natural Resources and Environment Do Duc Duy received and worked with Chairman and General Director of Erex Japan Joint Stock Company - Mr. Honna Hitoshi. Attending the working session with the Minister were leaders of units of the Ministry of Natural Resources and Environment: Director of the Department of International Cooperation Le Ngoc Tuan; Director of the Department of Climate Change Tang The Cuong; Director of the Department of Environmental Pollution Control Hoang Van Thuc; Director of the Department of Environment Nguyen Hung Thinh; Chief of the Ministry's Office Pham Tan Tuyen.

*Minister Do Duc Duy and Chairman and General Director of Erex Japan Joint Stock Company Mr. Honna Hitoshi.*

At the meeting, Mr. Honna Hitoshi informed that EREX is currently one of the companies actively researching and investing in the field of biomass power in Vietnam. EREX is researching and proposing to implement 14 biomass power plant projects in 12 provinces with a capacity of more than 1,000 MW. Of which, 01 20MW biomass power plant project in Hau Giang has received support from the Japanese Government to implement construction under the Joint Crediting Mechanism JCM and has started construction since December 2022. The project is expected to be registered as a JCM project in 2024.

EREX Company has just received support from the Japanese government to deploy 02 more biomass power plants, each with a capacity of 50MW, in Yen Bai and Tuyen Quang under the JCM Mechanism. For the projects expected to be registered under the JCM Mechanism, EREX Company proposes a carbon credit allocation rate that is satisfactory to the parties: the Vietnamese government, the Japanese government and EREX Company.

*Chairman and General Director of Erex Japan Corporation Mr. Honna Hitoshi.*

At the meeting, Minister Do Duc Duy welcomed the pioneering efforts of EREX in investing in reducing greenhouse gas emissions and creating carbon credits, especially in the field of biomass power. Carbon credits obtained from the projects will be allowed to be traded on the carbon market in Vietnam in the future, and at the same time, depending on bilateral mechanisms and priorities of the Government, can be transferred to partner countries, contributing to the implementation of the countries' NDCs.

In an exchange with the delegation of the Japanese EREX Company, regarding the content related to the development of the carbon market in Vietnam, Minister Do Duc Duy said that currently, regulations on the organization and development of the domestic carbon market have been included in the Law on Environmental Protection 2020 and are also specified in detail in Decree No. 06/2022/ND-CP. Accordingly, the domestic carbon market includes activities of exchanging greenhouse gas emission quotas and carbon credits obtained from domestic and international carbon credit exchange and offset mechanisms.

Minister Do Duc Duy said that the Vietnamese Government welcomes foreign enterprises such as EREX company to come to Vietnam to invest in new technology projects, reduce greenhouse gas emissions, and create carbon credits.

Currently, the Ministry of Natural Resources and Environment is in the process of reviewing and editing a number of articles of relevant legal documents to soon be able to trade greenhouse gas emission quotas and carbon credits in 2025...

Regarding the Joint Crediting Mechanism (JCM), the Ministry of Natural Resources and Environment has recently continued to coordinate with the Ministry of Environment and relevant parties from Japan to review, supplement, and complete regulations and guidelines for project implementation within the framework of the Mechanism to ensure compliance with domestic regulations of the two countries and compatibility with international regulations; at the same time, receiving and exchanging project idea dossiers, project registrations, and new methodologies to be applied to the JCM Mechanism.

Also at the meeting, Minister Do Duc Duy and Chairman and General Director Honna Hitoshi listened to the professional units of both sides and discussed in more depth the JCM joint credit mechanism and the emission trading mechanism (ETS). In particular, EREX has been applying technology to convert from using fossil energy (coal) to using completely biomass and becoming a leading enterprise in the field of biomass electricity in Japan. EREX believes that using biomass fuel at coal-fired thermal power plants helps maintain electricity production, while promoting the carbon neutrality process, ensuring a balance of economic efficiency and environmental factors. EREX wants to cooperate soon to turn the fuel conversion project into a JCM project in Vietnam.

EREX proposed to organize a Joint Committee meeting between the Government of Vietnam and the Government of Japan to discuss and reach common consensus for both sides. EREX also proposed to establish a joint special task force to establish a Vietnamese ETS market.

Acknowledging the discussions at the meeting, Minister Do Duc Duy highly appreciated EREX as a pioneer in investing in Vietnam and committed to working with the Vietnamese Government to carry out tasks towards the NetZero goal. In particular, EREX and its projects are typical models for Vietnam and Japan to evaluate and develop common conventions and regulations on the implementation of the JCM. The Minister assigned the Department of Climate Change to directly discuss and work with the company on issues related to the JCM Mechanism as well as the exchange of emission rights.

Overview of the reception and working session on the afternoon of September 23

In addition, the Ministry of Natural Resources and Environment will continue to promote the early organization of the 9th Joint Committee meeting to review and approve important contents, creating favorable conditions for the implementation of activities within the framework of the JCM Mechanism in Vietnam. Regarding the establishment of a special working group to implement the ETS, the two sides will meet and discuss thoroughly and will come up with specific plans.

Minister Do Duc Duy affirmed that the Vietnamese Government welcomes foreign enterprises such as EREX Company to invest in new technology projects, reduce greenhouse gas emissions, and create carbon credits in Vietnam. The Minister requested relevant units under the Ministry of Natural Resources and Environment to continue to support, provide, and exchange information with EREX Company so that the company can soon invest in implementing many projects to reduce greenhouse gas emissions in the field of biomass electricity in Vietnam and hopes that EREX Company and the Ministry of Natural Resources and Environment will continue to have more effective cooperation activities, contributing to further deepening the relationship between Vietnam and Japan, especially in the field of natural resources and environment.