Hanoi - An eco-lease solar power project is set to be implemented under cooperation between the Vietnamese and Japanese governments.

“Introduction of 0.4MW Rooftop Solar Power System to Aluminum Wheel Manufacturing Factory (Joint Crediting Mechanism (JCM) Eco Lease Scheme)” was selected by the Ministry of the Environment, Japan, for Financing Programme for JCM Model Projects.

A 0.4MW rooftop solar power generation system will be installed at the Enkei Vietnam factory. (Photo courtesy of BIDV)

This is the first JCM Eco Lease Scheme of BIDV-SuMi TRUST Leasing (BSL) and Sumitomo Mitsui Trust Panasonic Finance (SuMi TRUST Bank) registered in Vietnam since the JCM Eco Lease scheme was established in 2020.

The project demonstrates the efforts and focus of BSL toward a sustainable society. Through the JCM, BSL wishes to contribute to a low-carbon society.

The project aims to install a rooftop solar power generation system at Enkei Vietnam Co. Ltd. located in the Thang Long Industrial Park in Hanoi and provides the necessary electricity for the production process at the factory thereby reducing carbon emissions.

A 0.4MW rooftop solar power generation system will be installed at the Enkei Vietnam factory. Sharp NSN Energy Solution JSC, the equipment supplier, will install, construct and maintain the system in this project. Enkei Vietnam will sign a financial leasing agreement with BSL for five years, and BSL will keep ownership of the assets during the lease period.

The financing programme for JCM Model Projects includes the application of advanced decarbonising technologies to reduce greenhouse gas emissions and the measurement, reporting and verification process over the depreciation period.

The effect of reducing greenhouse gas emissions from the JCM Model Projects will contribute to the achievement of the target of reducing greenhouse gas emissions in Japan and partner countries. Up to half of the initial investment costs of advanced decarbonising technologies will be financed.

In the JCM Eco Lease scheme, 10 per cent of the total leasing charge, including leasing interest for the targeted assets, will be financed by the Japanese government, thereby providing customers with a financial leasing package with more favourable conditions.

Officially coming into operation in 2017, BSL is one of the leading financial leasing companies, established by two leading banks in Vietnam and Japan - the Bank for Investment and Development of Vietnam and Sumitomo Mitsui Trust Bank. It provides professional financing solutions for the SME market in Vietnam.