VERRA VCS 0971 Hyrdo Power Carbon Offset in Viet Nam

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Project Description

The Dak Srong 2 hydropower project is being developed by Hoang Anh Gia Lai Hydropower Joint Stock Company and is the first hydropower project being set up by the company. The proposed project activity aims to construct and operate a run-of-river hydropower project. Being a run-of-river (rather than accumulation reservoir plant), it offers an environmentally friendly solution to growing energy demand. It will be located in Yang Nam, Ya Ma, and Dak Hninh Communes, Kong Chro District, Gia Lai Province in the highland area of Viet Nam and is hereafter referred to as “the project activity”. Gia Lai is located in the central mountainous region of the country, which is one of the poorest areas in Viet Nam1. The nearest habitation to the project is situated 2.5 km from the project site. The proposed project utilises water resources of the Ba River, which links to the Da Rang River and eventually to the East Sea of Viet Nam.

Kong Chro District, Gia Lai Province
Tay Nguyen Hydropower Company Limited
Gia Lai, Viet Nam
VCS Project Status
View Issuance Records
Estimated Annual Emission Reductions
VCS Project Type
Energy industries (renewable/non-renewable sources)
VCS Methodology
VCS Project Validator
Carbon Check (Pty) Ltd
Project Registration Date
Crediting Period Term
CREDITING PERIOD HAS EXPIRED, 30/10/2010 – 29/10/2020


Demand for electricity is steadily increasing in developing countries and CDM Hydro Projects aim to develop sustainable energy options in order to limit greenhouse gas emissions and improve local electricity supply which is often limited by rudimentary infrastructure.


These projects produce renewable energy replacing electricity generated by fossil fuels, keeping millions of tonnes of CO2 out of the atmosphere each year in areas that have enormous hydropower potential to supply the surrounding region with clean energy.


By producing clean, renewable electricity, this project is reducing reliance on fossil fuel energy sources which cuts global emissions. It also contributes to local economic development by providing job opportunities and improving the local infrastructure.


Meeting the growing demand for electricity with clean energy to help to drive a low carbon future and boost local economic development. Provide opportunities for the next generation of renewable energy technicians and pave the way for similar projects in the region.


The Verra Registry issues carbon credits, each is equivalent to one tonne of CO2e. It is the central repository for all information and documentation relating to Verra projects and units. The Verra Registry also ensures the uniqueness of projects and credits in the system. Projects are subject to a rigorous verification process and Verra’s diligence and transparency underpins the positive outcomes of carbon projects it certifies.

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A – Environmental benefits:
The proposed project activity has positive impacts with respect to the environment. It is offsetting fossil fuel use and lowering greenhouse gas emissions while helping the country to cope with the
growing demand of energy. An Environmental Impact Assessment (EIA) has been prepared by an independent third party consultant and has been approved by local authorities. It mainly results in showing that the
project is not harmful to the environment since there are no endangered species within the project area and since the land is of poor quality of the ecosystem. Further, any potential negative impacts (such as the noise and the dust during the construction) will be mitigated and monitored as stated in official documents (and are mostly seen during construction phase, not operation). It has specifically to be highlighted that since the project is located in steep slope, the water of the river used in the plant is not suitable for fish habitat. Hence the project does not impact the aquatic ecosystem which is not the case of most accumulation / storage hydropower plants. Besides, thanks to its implementation, the project will contribute to raise the awareness on climate change among the local community (through the stakeholder meeting) or at a larger scale through the donation of part of the CER revenue to the Vietnam Environment Protection Fund (for further details, please see the “economic benefits”). Finally, the power density of the proposed project activity is far above the UNFCCC threshold of 10 W/m2 for project emission calculation. This means that the ecological footprint of the project is particularly low for a hydropower project, and that the potential risk to the environment is very limited.

B – Social benefits
As per the Environmental Impact Assessment approved, new roads have been constructed and are now connecting remote villages. Besides, the project is also improving the local economy through local employment during both the construction period (short-term jobs) and the operation (long-term jobs) of the plant. Some of these jobs require high level of expertise which is contributing to the increase of the local standard of living. The level of local knowledge will also increase due to the transfer of technology. Finally, it has to be highlighted that this project activity is of relatively small scale and that no residential land is impacted. Thus, no indigenous people have to resettle due to the implementation of the proposed project activity.

C – Economic benefits
In Viet Nam, all the CDM registered projects especially beneficial for the local community. Indeed, as per the Vietnamese Circular No: 58/2008/TTLT-BTC-BTN&MT issued by the Ministry of Natural Resources and Environment and by the Ministry Of Finance, 1.2% of the CER revenue from the implementation of Renewable Energy Sources projects will be given to the Vietnam Environment Protection Fund (VEPF). This money will notably be used for supporting the propagation, disseminate information and improve the public awareness in relation to climate change and CDM. The economy will also be improved both at a small scale (job creation) and at larger scale since it is satisfying the growing energy demands within the region and the country

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