First pilot electric vehicle carbon credit project in Vietnam
Local startup partnering with PoA Carbon Management and working with UNDP as Vietnam aims to meet its COP26 commitments.
Vietnam committed to achieving net-zero emissions by 2050 at COP 26 in Glasgow in late 2021. Under its Nationally Determined Contribution (NDC) in 2022, Vietnam increased its unconditional emissions reduction target for 2030 from 9 per cent to 15.8 per cent and its conditional target from 27 per cent to 43.5 per cent. The country’s transport sector needs to reduce about 19.3 million tons of carbon dioxide equivalent by 2030 compared to the business-as-usual scenario, through various measures including converting to vehicles using green fuel and electricity.
To contribute to Vietnam’s efforts, the United Nations Development Program (UNDP) has sponsored and coordinated with the Selex Smart Electric Vehicle JSC (Selex Motors) and the PoA Carbon Management JSC (PoA Carbon), piloting the “Selex Smart Electric Vehicle Project” and developing carbon credits for electric motorcycles according to the Gold Standard to reduce greenhouse gas (GHG) emissions and contribute to climate change mitigation. Mr. Dao Xuan Lai, Head of Climate Change and Environment at UNDP Vietnam, said this is the first carbon credit project for electric motorbikes in Vietnam, to be produced by Selex Motors.
Selex Motors was founded in 2018 with the goal of promoting sustainable development through smart electric vehicles. The company focuses on building a comprehensive ecosystem for electric motorbikes, resolving problems in charging times and high costs. It has been providing electric motorbike models mainly for transportation purposes, with partners such as Grab, Gojek, Lazada, and others.
With UNDP support, the project is in the process of being registered under the Gold Standard mechanism and aims to communicate emissions reduction results in accordance with Article 6.2 of the Paris Agreement. The project is being deployed in Hanoi and Ho Chi Minh City with about 90,000 vehicles, including the Camel 1, Camel 2, S1, S4, and S5 models, which are expected to reduce about 43,000 tons of carbon dioxide equivalent each year in the 2024-2028 period. A PoA Carbon representative said the project completed a Preliminary Review of the Gold Standard on June 15 and is expected to be registered in September.
Registering a project under the Gold Standard validates GHG emission reductions and positive economic and social impacts. The revenue generated from carbon credits will enable startups like Selex Motors to expand their operations and pursue sustainable development.
