REC Support to EESD – Deliverable 3: REC Policy Roadmap for Vietnam (FINAL)

The IA will oversee all REC market activities, including engaging with existing market operators, participating in the current REC market, evaluating the performance and gaps of the current market, and selecting the best option for long-term rollout. The IA will also be responsible for coordinating domestic efforts with global efforts, including the Carbon Disclosure Project (CDP), RE100, Science-Based Targets initiative (SBTi), and the International REC Standard (I-RECS). The REC Working Group will be responsible for fostering dialogue with and representing the diverse views of key stakeholder groups affected by the REC market. This includes public and private entities, particularly as they relate to policy development. The Working Group will collect and represent the various interests of all stakeholder groups and translate these inputs into corresponding policies and legal frameworks. To establish a successful REC market in Vietnam, the Government of Vietnam (GVN) will need to ensure coordination between energy and power sector stakeholders, agencies responsible for environmental and carbon management, and entities overseeing commercial sectors. The REC market should incorporate input from sellers and buyers from various sectors, including RE100 members with operations in Vietnam. GVN will also need to coordinate domestic efforts with global efforts and existing market operators. The selection of an Implementing Agency (IA) is a critical aspect of building Vietnam's REC market. The IA will lead the development of the REC market and coordinate domestic efforts with international efforts. The REC Working Group will be responsible for collecting and representing the various interests of all stakeholder groups and translating these inputs into corresponding policies and legal frameworks. The REC market should be designed to meet international quality standards. To achieve this, GVN will need to coordinate domestic efforts with global efforts and existing market operators. The IA will be responsible for leading the development of the REC market and coordinating domestic efforts with international efforts. The REC Working Group will be responsible for collecting and representing the various interests of all stakeholder groups and translating these inputs into corresponding policies and legal frameworks. A structured rollout plan for the next three years is essential for building national capacity in the REC market. The plan should highlight the need to build national capacity in the REC market and provide a method for the Government of Vietnam (GVN) to gain experience while generating revenue in the REC market. The rollout plan should contain four steps: (i) engage with the existing market operators; (ii) implement a trial REC market with these operators; (iii) review lessons from the trial and use corresponding evaluations to determine the best option for long-term market rollout; and (iv) develop a sequenced rollout plan for the long-term preferred option, including time-bound milestones and metrics of success. The report aims to support the Government of Vietnam (GVN) in building the foundations of a REC system that will help Vietnam scale up RE installations and meet its Nationally Determined Contributions (NDC) targets. The report provides concrete and actionable steps on how to leverage the REC instrument to achieve low-carbon, socioeconomic development across Vietnam. The key policy questions that the REC Working Group should consider when designing new policy materials to support a credible and fair REC market include: (i) what are the key national objectives for the REC market; (ii) how will ownership be managed; (iii) how will RECs interact with Renewable Portfolio Standards (RPS) or similar structures; and (iv) how will RECs interact with carbon instruments and carbon instruments and markets.