Vietnam is discussing the establishment of a domestic carbon credit exchange as a means to boost centralization, transparency, and overall efficiency in managing carbon credit transactions. The initiative is crucial for Vietnam to achieve its “Net Zero” target and strive for net zero emissions by 2050. The Ministry of Natural Resources and Environment is developing a Scheme for the Development of a Domestic Carbon Market, which includes the mandatory trading of greenhouse gas emission quotas for industries and businesses within the domestic market. The roadmap for the project aims to begin piloting by 2025 and have the carbon credit exchange officially operational by 2028. Thorough preparation in terms of infrastructure, techniques, inventory capacity, and corporate reporting is necessary for successful implementation.
Currently, Vietnam has four existing carbon credit mechanisms, including the Clean Development Mechanism, Joint Credit Mechanism, Gold Standard, and Verified Carbon Mechanism. The establishment of a domestic carbon market with an exchange will enhance centralization, transparency, and efficiency in transactions involving carbon credits. The Ministry of Natural Resources and Environment will create a national registration system for businesses and organizations generating carbon credits in Vietnam, and any transactions with foreign exchanges must be reported to the ministry.
The establishment of a voluntary carbon credit market is crucial for Vietnam to achieve its net zero emissions target by 2050. Vietnamese enterprises and their supply chains must embrace a green and sustainable approach to attract foreign direct investment. The global demand for voluntary carbon credits is increasing, and Vietnam is also experiencing this trend. Clear short, medium, and long-term goals are necessary, and resources must be allocated for the establishment of the exchange. Prime Minister Phạm Minh Chính has requested the development of a decree on carbon credit management, to be submitted to the government in the second quarter of 2024. The Ministry of Natural Resources and Environment will collaborate with other relevant agencies to gain insights from other countries’ experiences.
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