The Governments of Japan and Vietnam have approved nine new carbon credit projects under their Joint Crediting Mechanism (JCM), strengthening their partnership in reducing greenhouse gas emissions. These projects, registered between 2013 and 2020, include solar installations in Ho Chi Minh City, high-efficiency transformers in southern Vietnam, and energy-saving equipment in manufacturing facilities.
Also, Japan’s collaboration with Vietnam under JCM aligns with Article 6 of the Paris Agreement, helping Japan meet its Nationally Determined Contributions (NDC) through international carbon credit exchanges and promoting decarbonisation technology.
The Government of Vietnam is also set to trial its emissions trading system (ETS) in June 2024, aiming to officially implement it by 2028. The ETS will place carbon caps on industries, initially targeting major emitters in sectors like steel, cement, and coal-fired power. This move is expected to boost Vietnam’s sustainability efforts and enhance its international carbon market participation.