Cooperation in implementing green transformation and carbon finance activities

Continuing the working program of Thai Nguyen province delegation in South Korea, on November 27, Chairman of Thai Nguyen Province People's Committee Nguyen Huy Dung led the delegation to visit and work with the Korea Testing & Research Institute regarding the implementation of green transformation and carbon finance projects aimed at developing a green Thai Nguyen.

The working session was attended by comrade Pham Thai Hanh, Member of the Party Standing Committee, Head of the Provincial Party Committee's Mass Mobilization Commission; comrade Pham Van Tho, Member of the Party Standing Committee, Head of the Provincial Party Committee’s Internal Affairs Commission; and leadership representatives of a number of departments, branches and enterprises of Thai Nguyen province.

The Delegation visited the Korea Testing & Research Institute.

Chairman of Thai Nguyen Province People's Committee and the delegation explored the functional departments, laboratories, research and technology application of the Korea Testing & Research Institute (KTR). This is South Korea's leading institution with a high global ranking in testing, verification and sustainable development, designated by the UNFCCC (United Nations Framework Convention on Climate Change) as the agency responsible for collecting and analyzing data on clean development mechanisms. KTR provides services for greenhouse gas emission reduction assessment and emissions trading systems; KTR is currently conducting feasibility studies for carbon-neutral projects commissioned by the South Korean Government.

Currently, KTR is collaborating with AZ Energy Company (South Korea) to propose a survey, feasibility assessment and investment plan for a Methane Recovery Power Generation Landfill Project, establishing carbon credits in Thai Nguyen province, with an investment value of approximately USD 20 million. This activity is part of an emissions reduction project support program funded by the South Korean Government for South Korean enterprises. Accordingly, South Korea will support 50% of the funding for enterprises investing in emission reduction projects abroad. It is expected that on December 10 and 12, 2024, the delegation from AZ Energy and KTR Vietnam will conduct on-site work, survey in Thai Nguyen province and initiate investment procedures in the first quarter of 2025.

At the working session, the Chairman of Thai Nguyen Province People's Committee emphasized: Green transformation and carbon finance projects aimed at developing a green Thai Nguyen are one of Thai Nguyen's key focuses in the coming time, not only demonstrating commitment to domestic and international business communities but also contributing to the government's NetZero goal by 2050.

Speaking to welcome Thai Nguyen province delegation, Mr. Kim Hyun Chol, CEO of KTR, affirmed: As a major industrial center, Thai Nguyen has approached global issues early and from a distance. With experience and resources, KTR will strive to accompany and help Thai Nguyen green its production and service sectors.

KTR Vietnam, in collaboration with South Korean partners, proposes a feasibility study for a Green Energy Transformation Project for the 100 MW Cao Ngan Thermal Power Plant, specifically assessing the potential to convert the power plant's fuel from coal to biomass, transforming the project into a renewable energy plant.

Cao Ngan Thermal Power Plant will receive tens of millions of USD in investment from South Korea, laying the groundwork for biomass fuel conversion projects for coal-fired plants in Vietnam. The project proposal is expected to be submitted to the South Korean Government before December 10, 2024, after which KTR will collaborate with partners to work with Thai Nguyen Province People's Committee and power plants to implement subsequent steps in the first and second quarters of 2025.

Thai Nguyen Province and KTR signed a Memorandum of Understanding on the implementation of green transformation and carbon finance projects

During the working program, representatives from Thai Nguyen Province People's Committee and KTR signed a Memorandum of Understanding on implementing green transformation and carbon finance projects aimed at developing a green Thai Nguyen and deploying research to establish a Carbon Trading Research Center in Thai Nguyen. This center will survey and compile information about the current situation and potential, preparing for the operation of the carbon financial market in Vietnam based on South Korean experience, with a research investment of approximately USD 1-2 million. KTR is expected to begin implementation at the beginning of 2025.

Chairman of Thai Nguyen Province People's Committee Nguyen Huy Dung presented a photo of Thai Nguyen tea area to Mr. Kim Hyun Chol, Chairman of KTR.

The Chairman of Thai Nguyen Province People's Committee also suggested KTR to study and open a laboratory in Thai Nguyen to expand the business scope and improve the accreditation capacity according to international standards for Vietnamese enterprises in Thai Nguyen.