Many countries have adopted carbon pricing.
On June 27, Vietnam Television ( VTV ) organized a workshop on "Net Zero - Green Transition: Opportunities for Leaders". In their discussions at the workshop, a number of experts mentioned pricing and establishing carbon markets to reduce greenhouse gas emissions, contribute to responding to climate change, and achieve sustainable development goals.
Vietnam needs to move towards pricing and establishing a carbon trading market.
Mr. Tang The Cuong, Director of the Department of Climate Change (Ministry of Natural Resources and Environment), said that a carbon credit is a permit that allows the owner to emit a certain amount of carbon dioxide or other greenhouse gases. In the market, the purchase and sale of carbon, or more precisely the purchase and sale of CO2 emissions, is carried out through credits. One credit allows the emission of one ton of carbon dioxide or the equivalent in other greenhouse gases.
The development of the Vietnamese carbon credit market is one of the economic tools that has been included in the Law on Environmental Protection since 2020. However, to date, the recognition and issuance of carbon credits still depends on third parties, which are organizations or international credit mechanisms. The image of the seller in Vietnam is still unclear. Carbon credits have different prices, depending on the location and market where they are traded.
According to the Ministry of Natural Resources and Environment, to date, 46 countries and 35 territories have priced carbon with the participation of tens of thousands of large corporations and enterprises, with revenue in 2022 of about 95 billion USD.
"The biggest goal of carbon pricing and establishing a carbon market is to reduce greenhouse gas emissions, contribute to responding to climate change and achieve other sustainable development goals. Carbon credits are a new type of commodity created when implementing emission reduction or greenhouse gas absorption activities during the implementation process, which are monitored and traded like other commodities, so the exchange of carbon credits is also called the carbon market. Through the carbon market, greenhouse gas emissions can be reduced at low costs for businesses and society, promoting the development of low-emission technologies, contributing to improving the competitiveness of businesses," said Mr. Cuong.
In recent times, Vietnamese enterprises have taken advantage of opportunities and gained many benefits in implementing mechanisms when receiving more than 15,000 billion VND through selling carbon credits from clean development mechanism projects and nearly 35 million USD in support for general credit mechanism projects to apply advanced low-carbon technologies, products, systems and services from Japan.
Pilot operation of carbon credit trading platform from 2025
According to the Ministry of Natural Resources and Environment, since 2012, Vietnam has been actively preparing for the formation and development of a domestic carbon market, moving towards integration with the region and the world. On January 7, 2022, the Government issued Decree 06/2022/ND-CP regulating the reduction of greenhouse gas emissions and protection of the ozone layer (Decree 06). Accordingly, the development roadmap and implementation time of the domestic carbon market have been clearly outlined.
Many delegates attended the workshop "Net Zero - Green Transition: opportunities for leaders"
Specifically, by the end of 2027, regulations on carbon credit management, greenhouse gas emission quota exchange and carbon credit exchange will be developed; regulations on the operation of carbon credit trading floors will be developed; a pilot carbon credit exchange and offset mechanism will be implemented in potential sectors and guidelines for the implementation of domestic and international carbon credit exchange and offset mechanisms will be provided in accordance with the provisions of law and international treaties to which Vietnam is a member; a pilot carbon credit exchange will be established and operated from 2025; capacity building activities will be implemented and awareness raising activities will be carried out on carbon market development.
In the world in general and in Asia in particular, a series of carbon credit trading floors have been established and put into operation in 2023. This is proof of the great potential for development of this market in the future. The carbon credit trading market in the world currently has two popular types, which are the mandatory trading market and the voluntary trading market.
Mr. Phan Chien Thang, Director of Communications, Community and External Relations of Masan High-Tech Materials Company, said: "We are technically and financially ready to participate in the purchase and exchange of carbon credits in the future, as soon as the market officially comes into operation."
Mr. Duong Duc Quang, Deputy General Director of the Vietnam Commodity Exchange, said: "The Exchange is researching and will soon implement trading of carbon credit products connected with the world in the fourth quarter of this year. This will be a very important step in the process of developing the carbon credit trading market in Vietnam in the future."
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