Carbon credit market and human resource development strategy

Roadmap for reducing greenhouse gas emissions and building a carbon credit market

Recently, Prime Minister Pham Minh Chinh has given strong direction and established a National Steering Committee to implement Vietnam's commitments at the 2021 United Nations Climate Change Summit (COP26 - Glasgow, 2021, in which the Prime Minister committed Vietnam to achieve net zero emissions by 2050).

Prof. Dr. Vo Xuan Vinh attended and presented a paper on finding human resources for the carbon credit market at the School of Public Policy (Ministry of Agriculture and Rural Development)

One of the important directives is the issuance of the National Action Plan on Green Growth for the 2021-2030 period through Decision No. 1658/QD-TTg dated October 1, 2021. This plan sets out key goals on green growth, implementing international commitments on climate change and capacity building in related areas. The Ministry of Planning and Investment is the lead agency, coordinating with relevant ministries and branches to implement and deploy the activities and goals of the plan.

In addition, on January 7, 2022, the Government issued Decree 06/2022 regulating greenhouse gas emission reduction. The focus of the Decree is the roadmap for implementing the carbon credit market.

Specifically, from 2025, the Government will establish and pilot the operation of a carbon credit trading floor. From now until the end of 2027, the Government will actively promote the development of regulations on carbon credit management, establish regulations on the operation of the trading floor, and pilot the carbon credit exchange and offset mechanism. These efforts aim to create a solid foundation for the carbon credit market, ensure transparency and efficiency in transactions, and support the achievement of emission reduction and sustainable development goals.

Regarding the roadmap for emission reduction, Resolution 98 also shows that building a carbon credit market is a highlight, taking people as the center, along with green growth factors and technology diplomacy strategies. In particular, growth is also the task of enterprises in promoting sustainable development with the goal of being human-oriented.

Also according to the roadmap, from 2028, the Government will focus on operating an official carbon credit trading floor, and at the same time regulate activities of connecting and exchanging carbon credits between the domestic market and international markets, in order to create connections and expand trading opportunities. Although it is said to be a pilot, the players are global. This helps us participate in developing the UN network, as well as working with the Government in researching international policies and commitments.

The sooner the market is organized, the more beneficial it will be for Vietnam, helping us implement the green strategy not only domestically but also globally. In which, the agricultural sector takes the lead in selling carbon credits, estimated to reach 80 million tons by 2030, the target is forest exploitation.

Thus, Decree 06/2022 is an important step in managing CO₂ emissions and implementing a carbon market in Vietnam, helping to fulfill commitments on environmental protection and climate change response.

Intensive human resource training

Based on the above national strategies and policies, it can be said that Vietnam has made significant progress in implementing the roadmap to reduce greenhouse gas emissions and build a carbon credit market. In the coming time, to achieve the goals, developing specialized human resources in the field of carbon credits is a decisive factor.

To do this, investment in training and development of professionals capable of performing complex tasks such as measurement, reporting and verification (MRV) of emissions is needed. Vietnam can learn from Verra’s programs, which provide in-depth training on how to apply international standards to carbon projects. This will help build a pool of professionals capable of assessing and developing high-quality carbon projects.

We also need to equip businesses and regulators with knowledge of international carbon market mechanisms, including voluntary and compulsory credit markets. Focusing on the Article 6 mechanism of the Paris Agreement can provide a solid foundation for participation in international carbon credit trading.

Participating in networks and training programs of international organizations such as Ecosystem Marketplace, Sustainable Development Solutions Network (SDSN) will help Vietnam not only improve knowledge but also establish strategic partnerships.

Prof. Dr. Vo Xuan Vinh - one of the honored guests of Vietnam Law Newspaper at the seminar "Carbon credit market - legal perspective" held in Ho Chi Minh City in June 2024

The United Nations Sustainable Development Solutions Network (SDSN) operates under the auspices of the United Nations Secretary-General to mobilize universities, research institutions and national laboratories worldwide to implement the Sustainable Development Goals (SDGs) and the Paris Agreement. SDSN provides free online education to empower communities and transform scientific evidence and ideas into practical solutions. As of 2022, SDSN has more than 1,700 members, including 50 organizations with networks across 144 countries. Ho Chi Minh City University of Economics is the representative of SDSN in Vietnam, a hub attracting other universities to become members of SDSN. The Institute of Business Research - Ho Chi Minh City University of Economics has also set specific goals when joining the SDSN network.

Strengthening the development of related services

Training programs and services to support the carbon credit market not only provide knowledge and skills but also help ensure Vietnam’s effective participation in this market. Therefore, expanding international cooperation and developing related services are necessary for Vietnam to both fulfill its international commitments and effectively exploit opportunities from the carbon credit market, contributing to global emissions reduction efforts and promoting sustainable development.

Regarding related services, we need to focus on the consulting and project development area. This service includes the design, development and management of emission reduction projects, complying with international standards such as Verra or Gold Standard, to generate high-quality carbon credits.

In addition, measurement, reporting and verification (MRV) services are needed. MRV service providers will help ensure that emissions reductions are accurately measured and reported, in compliance with international requirements for carbon credits to be recognized.

Keynote speakers of the Carbon Credit Market Panel Discussion from an Environmental and Legal Perspective

Carbon credit trading and management services are also important. Platforms like Climate Impact X provide carbon credit trading services, helping businesses buy and sell credits transparently and efficiently in both voluntary and mandatory markets.

Another service that needs to be developed is auditing and certification. Organizations such as SGS and TÜV SÜD provide independent auditing and certification services, ensuring that carbon credits meet international standards, helping to increase the credibility and value of the credits.

Risk management and legal advisory services are also essential. These services help businesses manage risks related to carbon credits and ensure compliance with international legal regulations, helping to build a safe and effective investment strategy.

How to find human resources and build a complete legal environment is something that delegates are very interested in.

Finally, training and capacity development services need to be developed. Organizations such as Verra and IETA provide training programs to help businesses and governments better understand the carbon credit market, from trading mechanisms to project development and management, ensuring effective and sustainable participation in the market.

Prof. Dr. Vo Xuan Vinh - Institute of Business Research (UEH)

Vietnam's Green Growth Strategy

In 2021, the Government approved the Green Growth Strategy for the 2021-2030 period, with a vision to 2050, with the goal of reducing greenhouse gas emissions intensity per GDP, towards green and sustainable economic development.

The main objectives of the Strategy include: First, reducing the intensity of greenhouse gas emissions, with the target of reducing the intensity of emissions by 15% by 2030 and 30% by 2050 compared to the level of 2014. Next is developing renewable energy, increasing the development of energy sources such as wind power, solar power and biomass energy. The goal is to increase the proportion of renewable energy use in the total national energy supply to about 15-20% by 2030, and 25-30% by 2045. Finally, reducing the use of fossil fuels. The Strategy emphasizes gradually reducing dependence on coal and oil, shifting to cleaner energy sources, and improving energy efficiency in industry and transportation.

In addition to the Strategy, Vietnam has joined the Asia Climate Action Alliance (APCAA), a coalition of countries in the Asia-Pacific region to strengthen international cooperation in responding to climate change. Vietnam is also a member of the Global Energy Partnership (GEP), an initiative to promote cooperation in the field of sustainable energy and the transition to clean energy.

Source: https://baophapluat.vn/thi-truong-tin-chi-carbon-va-chien-luoc-phat-trien-nguon-nhan-luc-post525852.html