[Title] Memorandum of Cooperation on Low Carbon Growth between the Japanese side and the Vietnamese side

1. The Japanese side with the Minister of Economy, Trade and Industry as a signer and the Vietnamese side with the Minister of Natural Resources and Environment as a signer (hereinafter referred to as "both sides"), in pursuit of the ultimate objective of the United Nations Framework Convention on Climate Change (hereinafter referred to as the "Convention") as stated in its Article 2 and of achieving sustainable development, and in order to continue to address climate change in cooperation beyond 2012, promote the Low Carbon Growth Partnership as follows.

2. Both sides hold close policy consultations at various levels for cooperation toward low carbon growth under the UN, at the regional and bilateral frameworks.

3. Both sides, in order to promote investment and deployment of low carbon technologies, products, systems, services and infrastructure to achieve low carbon growth in Viet Nam, establish a Joint Crediting Mechanism (hereinafter referred to as the "JCM") and implement it in accordance with the relevant domestic laws and regulations in force in respective countries.

4. Both sides establish the Joint Committee to operate the JCM.

(1) The Joint Committee consists of representatives from both sides.

(2) Rules of procedures of the Joint Committee, including its membership, are formulated through consultations between both sides.

(3) The Joint Committee develops rules and guidelines regarding the JCM, methodologies to quantify the amount of greenhouse gases emission reductions or removals, requirements for designation of third-party entities, and other matters relating to the implementation and administration of the JCM as necessary.

(4) The Joint Committee convenes meetings on regular basis to evaluate the implementation of the JCM.

5. Both sides mutually recognize that verified reductions or removals from the mitigation projects under the JCM can be used as a part of Japan's internationally pledged greenhouse gases mitigation efforts and Viet Nam's nationally appropriate mitigation actions.

6. Both sides ensure the robust methodologies, transparency and the environmental integrity of the JCM and maintain the JCM simple and practical, to promote concrete actions for global greenhouse gases emissions reductions or removals.

7. Neither side uses any mitigation projects registered under the JCM for the purpose of any other international climate mitigation mechanisms to avoid double counting on greenhouse gases emission reductions or removals.

8. Both sides work in close cooperation to facilitate financial, technological and capacity building support necessary for the implementation of the JCM. Particularly the Japanese side will support the Vietnamese side for the implementation of the JCM.

9. The JCM starts its operation as the non-tradable credit type mechanism. Both sides continue consultation for the transition to the tradable credit type mechanism and reach a conclusion of such consultation at the earliest possible timing, taking account of implementation of the JCM.

10. Both sides aim for concrete contributions to assisting adaptation efforts of developing countries through the JCM after the JCM is converted to the tradable credit type mechanism.

11. This partnership covers the period from the signing of this document until a possible coming into effect of a new international framework under the Convention, which is expected to take place in 2020. Both sides consider possible extension of this partnership and reach a conclusion before its termination, taking into account, inter alia, the progress made in the United Nations negotiations on climate change.

12. Any content of this document may be modified only by mutual written consent between both sides.

13. Any differences on the interpretation, application and implementation of this partnership are resolved through consultations between both sides.

Signed in Hanoi on 2nd July 2013, in two originals in the English language.

Toshimitsu Motegi
Minister of Economy, Trade and Industry
of Japan

Nguyen Minh Quang
Minister of Natural Resources and
Environment of the Socialist Republic of
Viet Nam