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Sunday, July 21, 2024

Vietnam has first JCM Eco Lease scheme project successfully registered under Joint Crediting Mechanism (JCM)

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Recently, “Introduction of 0.4MW Rooftop Solar Power System to Aluminum Wheel Manufacturing Factory (JCM Eco Lease Scheme)” of BIDV-SuMi TRUST Leasing (BSL) and Sumitomo Mitsui Trust Panasonic Finance (SuMi TRUST Bank) was selected by the Ministry of the Environment of Japan for Financing Programme for JCM Model Projects (JCM Eco Lease scheme) under the JCM between Vietnam and Japan.

This is the first JCM Eco Lease Scheme registered in Vietnam since the JCM Eco Lease scheme was established in 2020. The project demonstrates efforts and focus of BSL towards a sustainable society. Through the JCM, BSL wishes to contribute to a low-carbon society.

This project will be implemented under the cooperation between Vietnamese and Japanese governments.

The goal of the project is to install a rooftop solar power generation system at the factory of Enkei Vietnam Co., Ltd. (located in Thang Long Industrial Park, Hanoi) and provide necessary electricity for the production process at the factory thereby reducing carbon emissions.

Specifically, a 0.4MW rooftop solar power generation system will be installed at Enkei Vietnam factory (Self-consumption of electricity). In this project, Sharp NSN Energy Solution JSC as the equipment supplier will install, construct and maintain the system. Enkei Vietnam will sign a financial leasing agreement with BSL for 5 years, and BSL keeps ownership of the assets during the lease period.

The Financing Programme for JCM Model Projects includes the application of advanced decarbonizing technologies to reduce greenhouse gas emissions, and measurement, reporting and verification (MRV) process over depreciation period. The effect of reducing greenhouse gas emissions from the JCM Model Projects will contribute to the achievement of the target of reducing greenhouse gas emissions in Japan and partner countries. Up to half of the initial investment costs of advanced decarbonizing technologies will be financed.

In the JCM Eco Lease scheme, 10% of the total leasing charge including leasing interest for the targeted assets will be financed by the Japanese government, thereby providing customers with a financial leasing package with more favorable conditions.

Officially coming into operation in 2017, BSL is one of the leading financial leasing companies, established by two leading banks in Vietnam and Japan, Bank for Investment and Development of Vietnam (BIDV) and Sumitomo Mitsui Trust Bank (SuMi TRUST Bank). It provides professional financing solutions for the SME market in Vietnam.

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