Second call for request on JCM Model Projects in Fiscal year 2015 | Registered Project | The Fourth Meeting of Joint Crediting Mechanism (JCM) Joint Committee | Call for public inputs on a proposed JCM project | First project successfully registered under JCM in Viet Nam | Review processes in the JCM | Project Cycle Procedure of the JCM |

Circular on regulations of development and implementation of JCM projects in the framework of cooperation between Vietnam and Japan

Posted: 14/08/2015 14:42

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MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT

 

No:    17/2015/TT-BTNMT

 

SOCIALIST REPULIC OF VIETNAM

Independence – Freedom - Happiness

Hanoi, 06th April 2015

CIRCULAR

on regulations of development and implementation of JCM projects in the framework of cooperation between Vietnam and Japan

 

Pursuant to Law on Signing and Adherance to International Laws No. 41/2005/QH11 dated 14th June 2005 by National Assembly of the Socialist Republic of Vietnam;

Pursuant to Decree No.21/2013/NĐ-CP dated 4th March 2013 by the Government regulating the mandate, functions and institutional arrangment of Ministry of Natural Resources and Environment;

Pursuant to the Memorandum of Cooperation on Low-carbon Growth between the Vietnamese side and the Japanese side dated 2nd July 2013;

According to proposal by Director-General of Department of Meterology, Hydrology and Climate Change;

Minister of Natural Resources and Environment issues the Circular on regulations of development and implementation of JCM projects in the framework of low-carbon growth cooperation between the Viet Nam and Japan,

 

Chapter I

GENERAL REGULATIONS

Article 1. Scope of the Circular

The Circular regulates activities related to the developement, registration and implementation of projects registered under the Joint Crediting Mechanism in the framework of low-carbon growth cooperation between the Viet Nam and Japan.

Article 2. Applicability of the Circular

The Circular is applied to agencies, organizations and individuals involved in the development, registration and implementation of projects registered under the Joint Crediting Mechanism in the framework of low-carbon growth cooperation between the Viet Nam and Japan.

 

Article 3. Terminology and abbreviations

In the Circular, the following terminology and abbreviations are used:

  1. Greenhouse gases (GHGs) are atmospheric trace gases that cause the global warming, including the following:

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).

  1. Joint Crediting Mechanism (JCM) is the mechanism in the framework of low-carbon growth cooperation between the Viet Nam and Japan to facilitate diffusion of leading low-carbon technologies, products, systems, services, and infrastructure as well as implementation of mitigation actions, and contributing to sustainable, low-carbon development of Vietnam; contribute to the Japan’s international commitments of reducing GHGs; and contribute to the ultimate objective of the UNFCCC by facilitating global actions
    for GHG emission reductions or removals.
  2. Joint Committee (JC) consists of the representatives from both the Vietnamese and the Japanese sides to guide, coordinate and manage all activities related to the implementation of JCM in the framework of Low-carbon growth between the Vietnamese side and Japanese side.

        The JC members are designated from the Vietnamese side and the Japanese side.      The Joint Committee has two Co-Chairs to be appointed by each side; on the Vietnamese side, the JC members include 01 Co-chair, who is the Deputy Minister of Natural Resources and Environment, and representatives of relevant ministries.          

  1. Viet Nam’s JCM Secretariat is established by the JC and consists of officials from Department of Meterology, Hydrology and Climate Change, Ministry of Natural Resources and Environment. Viet Nam’s JCM Secretariat shall assist the JC on the Vietnamese side with administrative procedures related JCM projects that are regulated in this Circular.
  2. JCM projecst are projectst in the Socialist Republic of Viet Nam that aim to reduce GHG emissions or enhance GHG removals to contribute to Japan’s emission reduction target and facilitate Viet Nam’s nationally appropriate mitigation actions. Projects registered under JCM are those approved by the JC in accordance with regulations in Chapter IV of the Circular.
  3. Project participants (PP) are legal agencies and organizations in Viet Nam and/or Japan who directly participate in the development and implementation of a JCM project.
  4. A project design document (PDD) is prepared by the project participants of a JCM project in accordance with technical guidelines by the JC, which sets out in detail the JCM project, including a completed PDD form and monitoring plan.
  5. Third party entity (TPE) of a JCM project is a qualified, legal organization designated by the JC. TPEs perform validation and verification of JCM projects on the basis of requests from the project participants.
  6. Validation is the process of independent evaluation of a proposed JCM project by a TPE against the validation guidelines as developed by the JC on the basis of the PDD.

A validation report is the report on validated PDD of the proposed project prepared by the TPE against the validation guidelines by the JC.

  1. Verification is the periodic independent review and ex post determination by a TPE of the monitored GHG emissions reductions or removals as a result of a registered JCM project during the verification period.

A verification report is the report prepared by the TPE on the evaluated and verified GHG emission reductions or removals as a result of the registered JCM project.

  1. A monitoring plan sets out the methodology to be used by project participants for the monitoring of, and by third-party entities for verification of the amount of GHGs emission reductions achieved by the JCM project. 

Monitoring report is prepared by a project participant and sets out the GHG emission reductions of an implemented registered JCM project for a particular monitoring period on the basis of the project PDD.

  1. Project methodology is a methodology applied to JCM projects for calculating emission reductions achieved by each project and monitoring the JCM project which is submitted to and approved by the JC.
  2. JCM webiste contains information on JCM technical guidelines by the JC and an electronic mail box to receive proposals by PPs, annoucements of TPE designation, announcements of approved methodologies, announcements of JCM registered projects, and for public input of JCM methodologies and/or projects.   
  3. Credits are issued based on quantified amount of GHG emission reductions or removals achieved in the implementation of JCM projects, approved and issued by the JC to the PPs on the basis of the verification report prepared by the TPE.
  4. Registry account is the account opened by PPs from the Vietnamese and Japanese sides to recieve the issued credits of the JCM project.
  5. A modalities of communication statement (MoC) consists of contact details of the focal point who is designated by the PPs of the project to communicate on their behalf with the Secretariat and the JC.
  6. Clean Development Mechanism (CDM) is a flexible financial mechanism under the Kyoto Protocol. The CDM Executive Board designates independent operation entities to validate and verify projects registered under the CDM.
  7. IAF is the world association of accreditation bodies whose function is to assess the conformity of different organizations to ensure their competence and impartiality in their assigned sectoral scope.

Article 4. Eligibility and sectoral scopes of the JCM

  1. Eligibility fo JCM projects

a)    Complying with exisiting laws and legislations in Vietnam, strategic priorities, and development planning of relevant sectors, Ministries or localities and contributing to the sustainable development of Vietnam;

b)    Developed and implementated on a voluntary basis, in compliance with the international laws Vietnam is currently a member to;

c)    Carried out in Vietnam’s territory in collaboration with a Japanese partner.

  1. Sectoral scopes

a)    Energy industries (renewable - / non-renewable sources)

b)    Energy distribution

c)    Energy demand

d)    Manufacturing industries

e)    Chemical industry

f)     Construction

g)    Transport

h)    Mining/Mineral production

i)     Metal production

j)     Fugitive emissions from fuels (solid, oil and gas)

k)    Fugitive emissions from production and consumption of halocarbons and sulphur hexafluoride

l)     Solvents use

m)  Waste handling and disposal

n)    Afforestation and reforestation

  • o)    Agriculture

p)    Others

Article 5. Project Cycle Procedure

  1. PPs develop and submit project methodology to the JC for approval;
  2. The JC approves the methodology;
  3. PPs develop PDD;
  4. TPE validates PDD on the basis of request from PPs;
  5. PPs submit the project proposal to the JC for registration;
  6. After the project is sucessfully registered, PPs start the implementation and monitoring of the project;
  7. TPE verifies the project on the basis of request from PPs;
  8. On the basis of requests from PPs and verification report prepared by TPE, the JC decides that amount of credits and notifies both sides to issue credits to PPs via their registry accounts.

 

Chương II

THIRD PARTY ENTITY DESIGNATION

Article 6. Third party entity designation

1. A candidate submits their application for TPE designation to the JCM Secretariat in electronic form in Vietnamese and English. Application package includes:

a) An application form (as shown in Annex 1 and 1ª of in the Circular).

b) ISO 14.065 certificate for entities accredited under IAF based on ISO 14.064-2 (for entities accredited under ISO 14065); or certificate for Designated Operational Entities or operational entities accredited by the CDM Executive Board (for entities designated/accredited under the CDM).

2. Within seven (07) days after the receipt of the submission, the Secretariat checks whether the application form is complete, and communicates the result to the candidate entity .

For incomplete submission, the Secretariat shall communicate once (01) for the candidate entity to complete their application; for complete submission, the Secretariat shall submit to the JC.

3. Upon receipt of the submission from the Secretariat, Joint Committee decides whether to designate the candidate entity as a TPE or reject the application. In case of rejection, the JC make known to the candidate entity of the reasons.   

4. The Secretariat notifies the candidate via electronic form JC’s decision to designate the candidate entity as a TPE or reject the application along with reasons. Decision to designate the candidate shall be made available on JCM website.

5. Applicable sectoral scopes under the JCM for TPEs are those described in their application (for entities accredited under ISO 14065) or those under the CDM (for entities designated/accredited under the CDM) unless otherwise decided by the JC. In case a TPE wishes to expand their applicable sectoral scopes, the TPE submits the application form (as shown in Annex 1 and 1ª of in the Circular) to the Secretariat in electronic and seeks its designation for those sectoral scopes.

Article 7. Suspension and withdrawal of the designation

           1. The designation is suspended or withdrawn when the status of the TPE changes regarding accreditation under ISO 14065 and/or accreditation/designation under the CDM for some or all sectoral scopes.

2. TPE is required to notify all affected organizations including project participants which the TPE is under contract and continue to perform their contractual obligations for JCM validation and/or verification activities by the time of suspension or withdrawal.

3. The Secretariat notifies the JC to decide on suspension or withdrawal of TPE designation when TPE status regarding accreditation under ISO 14065 and/or accreditation/designation under the CDM changes for some or all sectoral scopes.

Article 8. Procedures for voluntary withdrawal by a TPE

1. When a TPE wishes to withdraw its designation status for some or all sectoral scopes, the TPE submits a letter through electric means specified on the JCM website, to the Secretariat indicating the following:

- Name of the TPE;

             - Signature of its authorized representative;

    - Sectoral scopes that the TPE wishes to withdraw; and

- Date when the TPE wishes to withdraw its designation .

2. TPE is required to notify their voluntary withdrawal of the designation for some or all sectoral scopes to the Secretariat and all project participants.   

3. The Secretariat submits the voluntary withdrawal request of the TPE to the JC for decision.

 

Chapter III

PROPOSAL AND APPROVAL OF METHODOLOGY

Article 9. Proposal and approval of methodology

1. Organizations and/or individuals who are eligible to propose methodologies (hereinafter refered to as “methodology proponent”) includes organizations and/or individuals from the Vietnamese and Japanese sides, or JCM project participants.

Methodology proponents prepare Proposed Methodology Form and Proposed Methodology Spreadsheet in Vietnamese and English (as shown in Annext 2 and 2ª of this Circular) and submit to the Secretariat via electronic means.

2. Within seven (07) days since the receipt of the submission, the Secretarait checks the completeness of the submission and notifies the project proponents via electronic means.

In case the submission is incomplete, the Secretariat communicates once (01) with the proponent to complete the application.

    3. For complete submission, the Secretariat make all relevant information on the proposed methodology available on the JCM website for public inputs within fifteen (15) days. The secretariat makes all received inputs publicly available through the JCM website. After 15 days, the Secretariat summarize the public inputs and submit to the JC.

    4. Within sixty (60) days from the closing of the public inputs, the JC conclude the consideration of the proposed methodology.

In case further clarifications are needed, the JC requests the proponents to provide additional information to conclude the consideration. In case of rejection, secretariat notifies the outcome of consideration to the methodology proponents with its reasons  

5. The Secretariat notifies the methodology proponents the outcome of consideration (approval or rejection). For approved methodologies, within five (05) days since the conclusion of consideration, the Secretariat makes publicly available the outcome of the consideration, as well as relevant information on the approved methodology.

6. The methodology proponents may resubmit any proposed methodology that has been assessed as incomplete by the secretariat or has not been approved by the JC, with the reasons for incompleteness stated by the secretariat and non-approval stated by the JC.

Article 10. Modification of methodologies

1. During the implementation of a JCM project, methodology proponents and PPs may propose to modify the methodology by filling a form in Vietnamese and English (as shown in Annex 3 and 3ª of the Circular) and submit to JC via the Secretariat.

2. Procedure for modifcation of project methodology follows Article 9 of the Circular.


Chapter IV

PROJECT REGISTRATION AND APPROVAL

Article11. Registration and approval of projects

    1. PPs submit project document package to the Secretariat via electronic form. Request for registration includes:

    a) Draft PDD written in Vietnamese and English (as shown in Annex 4 and 4ª of this Circular); and Monitoring Report (as shown in Annex 5 and 5ª of this Circular);

    b) MoC written in Vietnamese and English ( as shown in Annex 6 and 6ª of this Circular).

    2. The secretariat issues a unique reference number to the proposed project and notifies the number to the PPs.

    3. Project document package and the name of the TPE are made public available on the JCM website for public inputs within thirty (30) days. The Secretariat informs the project participants and the TPE of the location of the draft PDD on the JCM website and the opening and closing dates of the duration of call for public inputs

    Public inputs are sent in both Vietnamese and English through electronic means specified on the JCM website.  The submitters of the inputs provide the name and contact details of the individual or organization on whose behalf the inputs are submitted. The TPE checks the authenticity and relevance of this information in case of doubt.

    4. After the closing of public inputs, the Secretariat summarizes the inputs and submit them to the JC.

    5. PPs request the TPE to validate the PDD and MoC against the validation guidelines by the JC. In case the submission is deemed incompetent by the TPE, the TPE notifies the outcome to the PPs to modify the PDD until TPE produces a positive validation report. Validation can be conducted before, during or after the public input duration.

             6. When project document package is deemed competent, PPs submit the request for registration to the Secretariat via electronic means, including:

             a) Project document package at provision 1 of this Article along with an application form in Vietnamese and English (as shown in Annex 8 and 8a of the Circular);

    b) Validation report in Vietnamese and English prepared by TPE (as shown in Annex 7 and 7a of this Circular) and other relevant documents.

7. The Secretariat notifies the PPs the receipt of the request for registration via email and make all relevant information of the project publicly available on the JCM website.

Within seven (07) days, the Secretariat conducts the completeness check of the request and notifies the PPs and the TPE of the outcome. In case further clarifications are needed, the Secretariat shall request the PPs to provide additional information.

The Secretariat shall submit complete requests to the JC for consideration.

8. Upon positive conclusion of the completeness check, the Joint Committee decides on whether to register the proposed JCM project with its reasons.

Article 12. Modification of the PDD

1. When PPs wish to modify the content of the registered PDD, they submit a PDD modification request to the Secretariat via electronic means. The request includes:

a) An application form in Vietnamese and English (as shown in Annex 9 and 9ª of this Circular);

b) Modified PDD in Vietnamese and English (as shown in Annex 4 and  4ª of this Circular);

c) TPE validation report in in Vietnamese and English (as shown in Annex 7 and  7ª of this Circular)

2. Procedure for modfication of the PDD follows provisions 3 to 8, Article 11 of this Circular.

Article 13. Cancellation of or withdrawl from the project

    1. During the implementation of the registered project, PPs may request to cancel the project by submitting a form in Vietnamese and English (as shown in Annex 11 and 11ª of this Circular) via email to the Secretariat.

    2. In case a PP wishes to withdraw from the project, the PP submit a withdrawal form in Vietnamese and English (as shown in Annex 12 and 12ª of the Circular) and an MoC modification form (as shown in Annex 10 and 10ª of the Circular) via email to the Secretariat.

    3. Upon receipt of the request, the Secretariat submits to the JC consideration.

    4. The Secretariat make publicly available the outcome of the JC consideration on the JCM website and relevant information.

    5. PPs must fulfil their contractual oblications and take liability for their cancellation of or withdrawal from the project to the affected parties.

 

Chapter V

PROJECT IMPLEMENTATION AND ISSUACE OF CREDITS

Article 14. Project implementation

    1. PPs conduct the implementation and monitoring of registered JCM projects in accordance to the approved PDD.

    2. During the implementation of the project, PPs must comply with JCM guidelines for validation and verification.

Article 15. Credit issuance

    1. PPs submit credit issuance request to the Secretariat via electronic means, including:

1.1.1.   a) Credit issuance request by PPs in Vietnamese and English (as shown in Annex 13 and 13a of this Circular);

1.1.2.   b) Monitoring report by the PPs;

1.1.3.   c) Verification report by the TPE in Vietnamese and English (as shown in Annex 14 and 14a of this Circular).

2. The Secretariat notifies the receipt of the credit issuance request to the PPs.

3. Whin seven (07) days, the Secretariat notifies the PPs and the TPE on the completeness of the request via electronic means.

4. If the request is deemed complete, the Secretariat submits it to the JC for determination of the amount of credits.

5. Upon decision by the Joint Committee, the secretariat notifies the Vietnamese and Japanese sides, the project participants and the TPEs of the result. The Secretariat make the decision and all relevant information publicly available on the JCM website.

Article 16. Withdrawal of credit issuance request

1. After submitting the request for credit issuance, PPs may withdraw the request by submitting a credit issuance request withdrawal in Vietnamese and English (as shown in Annex 15 and 15a of this Circular) via email to the Secretariat.

2. The Secretariat submits the request to the JC for consideration.

3. PPs take liability for damages caused by their withdrawal to the affected parties.

 

Chapter VI

EFFECTIVENESS

Article 17. Effectiveness

This Circular comes into effect starting from 22nd May 2015 and shall be valid until replaced by another legal document.

Article 18. Insitutional arrangement

1. Responsibilities of Department of Meteorology, Hydrology and Climate Change, standing office of the JC on the Vietnamese side:

a) Providing guidance to the Secretariat to assist JC in overseeing and guiding stakeholders on development of  methodologies, designation of TPEs, registeration of JCM projects, monitoring and implementation of projects, and credit issuance to PPs in accordance with this Circular.

b) Coordinating with other relevant agencies to develop annual plans and monitor the implementation of this Circular; penalizing or appealing to penalize for project activities that break the regulations of this Circular and/or other relevant legal documents. 

2. Department of Natural Resources and Environment of provinces and centrally-managed cities shall assit the local People’s Committee and support PPs to implement JCM project in compliance with the regulations of this Circular and/or other relevant legal documents.

3. Ministers, Heads of Ministry-equivalent bodies, Chairmen of the People’s Committees, organizations and individuals related to the JCM shall be responsible for the implementation of this Circular.

Should any problems arise during the implmentation of this project, organizations and individuals shall submit their questions to the Ministry of Natural Resources and Environment for solutions./.

Receivers:

- National Assembly Office;

- Presidential Office;

- Office of the Central Committee of the Party;

- Governmental Office;

- People’s Supreme Court;

- Supreme People’s Prosecutor;

- Ministries, Ministry-equivalent bodies, Governmental bodies;

- Legal Document Control Bureau (Ministry of Justice);

- People’s Committees;

- DONREs;

- Govermental portal;

- MONRE Website;

- Archive: VT, KTTVBĐKH, PC.

FOR MINISTER

DEPUTY MINISTER

 

 

Tran Hong Ha

 

 



Partner

IGES
OECC

The Joint Crediting Mechanism
Address: Room 404, No 10 Ton That Thuyet, Nam Tu Liem, Hanoi, Viet Nam
Tel: (84- 4) 37955248 Fax: (84- 4) 37955248
Email: vnjcm@monre.gov.vn