Vietnam, Japan deepen cooperation on biomass energy and carbon market development

At a meeting with Erex Group CEO Honna Hitoshi, Acting Minister Tran Duc Thang emphasized Vietnam’s commitment to deepening cooperation with Japan in biomass energy, renewable power conversion, and carbon credit mechanisms.

On the morning of Oct. 17, at the headquarters of the Ministry of Agriculture and Environment, Acting Minister Tran Duc Thang held a meeting with Mr. Honna Hitoshi, President and CEO of Japan's Erex Group. The discussion centered on cooperation in biomass energy, the green energy transition, and the development of a carbon market (ETS) in Vietnam.

During the meeting, Erex Group reported on the implementation status of its biomass power projects and its plans to convert fossil fuel plants to biomass in Vietnam. Erex is currently developing 19 biomass power projects in various provinces and cities, with a total capacity of over 1,100 MW. The group also plans to convert coal-fired thermal plants to biomass, totaling over 1,585 MW.

Several typical projects are being implemented under the Joint Crediting Mechanism (JCM) between Vietnam and Japan, such as the 50 MW plant in Yen Bai and the 50 MW plant in Tuyen Quang. These projects are expected to reduce CO₂ emissions by hundreds of thousands of tons annually.

Mr. Honna Hitoshi stated that Erex wishes to enhance cooperation with the Ministry of Agriculture and Environment in sharing biomass development experience, particularly in converting thermal power plants to biomass combustion, a field where Japan has extensive practical experience.

Erex Group proposed establishing a joint working group with the Ministry of Agriculture and Environment to promote carbon market development in Vietnam. This group would serve as a focal point for exchanging information, sharing experiences on operating credit registry systems, connecting with international carbon markets, and particularly learning from Japan's experience in implementing emission reduction credit mechanisms and operating renewable energy systems.

Erex also suggested that the Ministry of Agriculture and Environment consider organizing a Japan-Vietnam Joint Committee to evaluate and determine a roadmap for allocating carbon credits to biomass projects within the JCM framework.

Vietnam was one of the first countries to join the JCM with Japan, starting in 2013. To date, the two sides have approved 15 methodologies and registered 14 projects, with approximately 35,000 carbon credits issued, corresponding to 35 million USD in support from Japan.

At the reception, Acting Minister Tran Duc Thang affirmed that Vietnam always values and encourages cooperation with Japanese enterprises in the energy transition process and in implementing its commitment to achieve net-zero emissions by 2050.

He noted that Erex is one of Japan's leading corporations with extensive experience in biomass energy, especially in converting coal-fired thermal plants to biomass combustion, which aligns with Vietnam's renewable energy development strategy.

The Acting Minister acknowledged Erex's proposal to establish a joint working group between the Ministry of Agriculture and Environment and Erex to promote carbon market development in Vietnam. He stated this would be an important technical cooperation channel for sharing experiences, information, and methods for operating a credit registry system and connecting with international carbon markets in the future.

The Ministry of Agriculture and Environment welcomed the proposal to organize working delegations for the Ministry and Vietnamese businesses to visit Japan to survey, exchange, and learn from experiences in implementing carbon credit mechanisms and operating renewable energy systems, thereby promoting effective emission reduction models in Vietnam.

Regarding the JCM mechanism, the Acting Minister emphasized that the Ministry of Agriculture and Environment will coordinate with relevant Japanese agencies to soon finalize amendments to the Vietnam-Japan JCM Cooperation Agreement, ensuring the mechanism complies with the provisions of the Paris Agreement and hrmonizes the interests of both sides.

He requested that Erex continue to invest and expand its activities in Vietnam in the fields of biomass energy and greenhouse gas emission reduction, and to coordinate closely with ministries, sectors, and localities to implement initiatives aligned with the net-zero by 2050 goal.

He also expressed confidence that Erex's experience and commitment, combined with support from the Ministry of Agriculture and Environment and Japan's Ministry of Economy, Trade and Industry (METI), will contribute to promoting strategic Vietnam-Japan cooperation in clean energy and climate change response.

Bao Thang