MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.: 10/2006/TT-BTNMT
Hanoi, December 12, 2006
 
CIRCULAR
GUIDING THE FORMULATION OF CLEAN DEVELOPMENT MECHANISM (CDM) PROJECTS WITHIN THE FRAMEWORK OF KYOTO PROTOCOL
In accordance with the Government's Decree 91/2002/ND-CP dated 11 November 2002 stipulating functions, duties, limits of power and organisational structure of MONRE;
In accordance with the Prime Minister's Directive 35/2005/CT-TTG dated 17 October 2005 on the implementation of Kyotol Protocol within the UN Framework Convention on climate change;
Ministry of Natural Resources and Environment is responsible for guiding the preparation, formulation, certification and approval of CDM projects as follows:
I. GENERAL STIPULATIONS
1. Overview on Clean Development Mechanism and Clean Development Mechanism projects
Clean Development Mechanism (CDM) is a mechanism of cooperation stipulated in Clause 12 of Kyotol Protocol within the UN Framework Convention on climate change.
Clean Development Mechanism allows public and private organisations and enterprises of industrialized and developed nations and international organisations to invest into projects designed to reduce greenhouse emissions in developing countries, which are termed CDM projects so that these projects are able to receive credits in the form of certified emission reductions - CER. The credits are used to measure the quota of greenhouse emission reductions in industrialised and developed nations so that they abide by commitments on quantitative emission reduction indicated in the Kyotol Protocol.
While implementing CDM projects, developing countries will receive new investments from abroad and gain access to high and environment-friendly technology, contributing to sustainable socio-economic development, environmental and climatic protection.
CDM projects are investment projects, primarily of foreign investment. Thus, CDM projects in Vietnam are subject to the adjustments of legal documents of Vietnam, including Law on Foreign Investment adopted by Vietnam's National Assembly on 29 November 2005 and Decree 108/2006/ND-CP dated 22 September 2006 by the Government that provides specific stipulations and guidelines on how to implement a number of clauses of the Law on Foreign Investment.
2. Subjects that are entitled to formulate and implement CDM projects