DNVN - Dr. Nguyen Tu Anh - Director of the Center for Economic Information, Analysis and Forecast (Central Economic Committee) commented that Vietnamese enterprises almost do not have enough understanding and interest in the carbon credit market.
According to the draft “Project on Establishing and Developing a Carbon Market in Vietnam”, the carbon market will be piloted in the 2025-2028 period; from 2029, the carbon market will be officially implemented nationwide.
Developing a carbon market contributes to the goal of reducing greenhouse gas emissions at low costs for businesses and society, creating new financial flows for greenhouse gas emission reduction activities; promoting green transformation, developing low-emission technologies. Contributing to improving the competitiveness of Vietnamese enterprises; developing a low-carbon economy and proactively responding to climate change, towards achieving net emissions of "0" by 2050.
However, the formation and operation of the carbon credit market in Vietnam is currently facing many difficulties and challenges. That is, the awareness of this market among enterprises, organizations and society is still limited. Participation in the carbon credit market in Vietnam also faces difficulties related to the legal basis.
Speaking at the workshop "Carbon credit market: Fundamental measures for sustainable development" on the morning of October 26, Dr. Nguyen Tu Anh - Director of the Center for Economic Information, Analysis and Forecast (Central Economic Committee) quoted information from the World Carbon Market Institute, saying that there are currently about 73 carbon mechanisms, including voluntary and mandatory markets, operating at the national and local levels.
These mechanisms cover about 23% of global greenhouse gas (GHG) emissions and have mobilized about $100 billion in 2022. Mandatory carbon market mechanisms dominate, with about 98% of total revenues generated from these mechanisms (the remaining 2% comes from voluntary market mechanisms).
For the voluntary carbon market, statistics from Forest Trends' Ecosystem Marketplace Program show that in the period 2021-2023, there were 1,530 carbon projects in 98 different countries. The amount of carbon traded was about 254 million tons with a turnover of nearly 1.9 billion USD.
The volume of carbon credits traded under the voluntary carbon program in 2022 decreased by 51% compared to the volume traded in 2021. However, the price of carbon credits increased sharply (82%) from 4.04 USD/ton to 7.37 USD/ton in 2022. The price of carbon credits in 2023 decreased compared to 2022, at 6.97 USD/ton.
“Participating in the carbon credit market brings many benefits not only to businesses but also to the community. It not only brings economic benefits but also environmental and social benefits, promoting sustainable development.
Through the carbon credit market, businesses in urban and lowland areas share benefits with people in remote and mountainous areas who have the capacity to absorb carbon emissions created by manufacturing businesses,” said Mr. Tu Anh.
However, according to the Director of the Center for Economic Information, Analysis and Forecasting, despite such great benefits, in a recent survey by the Energy and Environment Consulting Joint Stock Company, more than 30% of businesses out of a total of 537 businesses only have a basic understanding of the emission trading system (ETS) and the carbon market.
“Only 1.27% of businesses know about ETS and the carbon credit market. Thus, Vietnamese businesses hardly have enough understanding and interest in this market with many advantages,” Mr. Tu Anh affirmed.
For the carbon credit market to form and develop, a comprehensive and synchronous legal corridor is needed.
For the carbon credit market to form and develop, there needs to be a comprehensive and synchronous legal framework that clearly defines the rights and obligations of participating parties, principles for determining products, principles for determining ownership rights, and disposal rights, as well as principles for determining transaction prices and standards that must be followed.
“To create a market for carbon credits, there must first be demand for them. Businesses must know how much they are emitting and how much they are allowed to emit. If a business is emitting more than its permitted limit, what are the consequences?
At the same time, if businesses want to ensure they are within the limit, where can they buy carbon emission credits? Who guarantees that these credits are recognized worldwide? These are basic questions but there are still no specific answers,” Mr. Tu Anh emphasized.
Ha Anh
Source: https://doanhnghiepvn.vn/kinh-te/hau-het-doanh-nghiep-viet-thieu-hieu-biet-ve-thi-truong-tin-chi-carbon/20241026102343043
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