Switzerland wants to cooperate in developing carbon market

(TN&MT) - On November 19, on the sidelines of the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 29) in Azerbaijan, Deputy Minister of Natural Resources and Environment Le Cong Thanh had a bilateral meeting with Mr. Felix Wertli, Swiss Ambassador for Climate Change.

Speaking at the meeting, Deputy Minister Le Cong Thanh expressed that Vietnam and Switzerland have had a long-standing and strong cooperative relationship, with many very good results. This is the foundation for more proposals and exchanges in efforts to respond to climate change in the coming time, especially related to the development of the carbon market.

Deputy Minister of Natural Resources and Environment Le Cong Thanh speaks at the bilateral meeting

Ambassador Felix Wertli shared that Switzerland is currently one of the leading countries in the world in piloting carbon credit exchange projects under Article 6.2 of the Paris Agreement. Recently, the Swiss focal point has discussed and worked with Vietnamese agencies and organizations to identify a number of potential projects for piloting (electric vehicle projects, agricultural irrigation projects, biogas projects, green cooling projects). Implementing a carbon market under Article 6 will be an important financial support for developing countries, including Vietnam, to achieve their goals under their Nationally Determined Contributions (NDCs). The Swiss side hopes to be able to officially launch a bilateral agreement on carbon credit exchange with Vietnam, on the basis of clarifying the necessary roadmap.

Mr. Felix Wertli, Swiss Ambassador for Climate Change, expressed his hope that the two countries will cooperate in exchanging carbon credits according to Article 6 of the Paris Agreement.

According to Deputy Minister Le Cong Thanh, carbon credit exchange under Article 6 of the Paris Agreement is a new issue. At COP 29, the Parties are still negotiating and finalizing relevant international regulations.

Currently, the Vietnamese Government and ministries and sectors have developed a greenhouse gas emission reduction plan, detailing specific targets for each sector. This is the basis for assessing how many carbon credits are needed to contribute to the emission reduction target under the NDC, and how many remaining carbon credits can be traded under Article 6 of the Paris Agreement.

In order to organize and develop the carbon market in Vietnam, the Ministry of Natural Resources and Environment has proposed to add a number of relevant regulations to the draft Decree amending and supplementing a number of articles of Decree No. 06/2022/ND-CP, including regulations on the principles of implementing multilateral and bilateral carbon credit exchange and offset mechanisms. Vietnam also has experience in implementing carbon credit exchange under the Joint Crediting Mechanism (JCM) with Japan, and is reviewing to adjust a number of relevant regulations.

Vietnam hopes that Switzerland can share information and cooperation experience with other countries on Article 6.2, including necessary implementation regulations and international reports on carbon credit exchange as required by the Paris Agreement. At the same time, propose specific content on carbon credit exchange between Vietnam and Switzerland for the Ministry of Natural Resources and Environment to report to competent authorities for consideration and decision.

Switzerland needs to buy at least 20 million carbon credits between now and 2030 to meet its commitment to reduce greenhouse gas emissions.

Mr. Felix Wertli said that the focal agencies of the two countries need to spend time discussing pilot projects and propose a draft cooperation agreement on credit exchange from next year. The emission reduction project under Article 6 could be extended to 2030 or 2035. The Swiss Ambassador also proposed to organize a workshop to kick off cooperation activities in the coming time.

Supporting the approach with specific projects, Deputy Minister Le Cong Thanh said that this is the premise for building regulations in accordance with Vietnamese law, completing the necessary legal corridor quickly.

The two sides agreed to continue exchanging experiences to be able to quickly develop projects, focusing on innovation and effectively reducing emissions, linked to Vietnam's key areas.

Switzerland needs to purchase at least 20 million carbon credits between now and 2030 to meet its commitment to reduce greenhouse gas emissions. To achieve this goal, Switzerland will negotiate and sign bilateral agreements and treaties on carbon credit exchange with partner countries and purchase carbon credits to bring back to the country. To date, Switzerland has signed 13 bilateral agreements and treaties with countries in Asia, Africa, the Americas and Europe and has implemented a total of 5 pilot projects under Article 6.2.

Source: https://baotainguyenmoitruong.vn/thuy-si-mong-muon-tang-cuong-hop-tac-phat-trien-thi-truong-cac-bon-383379.html