Behind the projects: On site at the hydropower project in Vietnam

By emitting carbon dioxide and other greenhouse gases, we humans are changing the climate worldwide. To meet the 1.5 degree target, it is clear that we must avoid greenhouse gas emissions. The focus is on reducing our own emissions. The problem is that not all emissions can be avoided.

What CO₂ compensation means

These unavoidable emissions can be offset with the help of climate protection projects: This is because they help to reduce or completely prevent the emission of greenhouse gases elsewhere. This is made possible by projects such as the construction of wind and solar farms, the procurement of clean cooking stoves, and hydroelectric power plants.

How exactly does CO₂ offsetting work? Climate protection projects can often only be made possible through the sale of CO₂ certificates and finance the implementation and continuation of the project. The reason is that in the global south there are not enough incentives to rely on renewable energies and it is cheaper to use coal, oil or gas to produce electricity, for example. Companies can purchase these CO₂ certificates in the amount of their unavoidable emissions. In this way, they ensure the preservation of the project on the one hand and offset their emissions on the other. 

How trustworthy are climate protection projects?

With Planted, we support projects of the standards that the German government also recommends. These include the Gold Standard, the Verified Carbon Standard, the United Nations and the German MoorFutures project. With the help of certain criteria, these standards ensure that the climate protection projects are effective and additional.

Confidence in the standards is high. Nevertheless, we decided to visit one of the projects we support. Our co-founders Cindy and Wilhelm were on site in November 2022 at the Hydropower Project in Vietnam: a hydropower plant that generates green electricity in the central highlands of Vietnam and reduces greenhouse gas emissions by 363,438 metric tons of CO₂ annually.

The aim was to get a look behind the scenes, to see for themselves the positive value of the project, to talk to those responsible and to ask critical questions. In the interview with Wilhelm, we learn the most important facts about the project activity and all the insights about the visit to Southeast Asia.

Insight into a United Nations‍ climate protection project

Why was it so important for Planted to visit one of the projects on site, even though the federal government has already deemed this standard trustworthy?

Wilhelm: All the climate protection projects we offer are subject to the highest standards. Nevertheless, it was important for us as a provider to take a look behind the scenes of a project and gain insights that are not possible through the mere purchase of certificates. On the one hand, we want to create transparency, but on the other hand, we also want to strengthen trust in such projects. The on-site visit enabled us to inspect the entire project facility and to get in touch with those responsible. It also made it possible to ask critical questions.

You have already mentioned that critical questions could also be asked.Do the projects also have negative consequences?‍

Wilhelm: Unfortunately, yes, and we think it is important to communicate this transparently. Nearly 1,800 households had to be relocated for project construction and received compensation agreed under the law. Fortunately, all cases were ultimately resolved properly. Furthermore, fish migration between the reservoir and the downstream river was also affected. For this, it was planned to breed fish in the reservoir area and prohibit fishing in the downstream area to give space to a natural fish population. 

The forest in the project area had already been cleared for agricultural use before the project started. The area around the reservoir included only secondary forest and grassland with shrubs, but trees were planted here as countermeasures.

Negative consequences are therefore present, but attempts are made to compensate for them as best as possible. 

What impressed you the most on site? Is there anything that surprised you?

Wilhelm: We could really feel how happy and pleased those involved on site are that the system of global CO₂ compensation is bearing more and more fruit. This creates a kind of secure revenue stream that makes it more and more likely that such projects will work overall and can continue to operate. What surprised me was that ultimately not only Vietnam benefits from the clean energy, but the electricity is fed into the entire grid in the region, so that Laos or Cambodia, for example, also profit from it.

In addition to the reduction and avoidance of CO₂ as an ecological value, climate protection projects often also have a social value. Where does this lie in the case of the hydropower project?

Wilhelm: In addition to the negative aspects, we were also able to observe very many positive aspects with this project. These include, of course, the resulting supply of 144 megawatts of clean energy for the power grid, but also the creation of more than 1,000 jobs during the construction phase of the project, as well as a total of 124 permanent positions. At the same time, investments were made in local infrastructure, which also benefits the local population, and ultimately the improved water supply for people and plants. The microclimate has also improved and the local economy has been boosted. Other points are the resulting flood control, irrigation possibilities for agriculture, the creation of groundwater wells and new roads and bridges for a better infrastructure.

How did you feel about supporting climate change projects when you left Vietnam?

Wilhelm: It helped me a lot to experience a United Nations climate protection project live and to understand how such a project works on site. Often these projects are very abstract and not really tangible. I would love to visit more projects and give our Planted partners, private customers and all other readers a look behind the scenes, but unfortunately we would have to fly too much.

What role do you think climate protection projects will play in the future?

Wilhelm: For the future, I would like to see climate protection projects continue to be implemented - but only to offset unavoidable CO₂ emissions. The reduction of emissions must be seen much more as a top priority. If climate protection projects are then additionally funded, we will be well on our way. In 2022, more than one billion euros were voluntarily invested in such projects by companies and private individuals, resulting in a great deal of good. I hope that we can increase this many times over, while at the same time reducing emissions as much as possible. There is no either or here for climate protection; we must try everything in our power.
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Would you like to reduce emissions with your company and offset unavoidable emissions or actively support climate protection projects such as our hydropower plant? You can find out more here or get in touch with our contact persons directly.

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Further insights into our on-site visit‍

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About the project

The hydropower project in Vietnam is a UN project located on a reservoir in the DakrLap district in the central highlands of Vietnam. The project activity comprises the construction and operation of a hydropower plant that produces around 639,900 MWh of electricity per year with a total capacity of 144 MW. Every year, 363,438 tons of CO₂ can be reduced with the help of the power plant. Here you can find the project entry at the United Nations.

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