Vietnam’s Ministry of Natural Resources and Environment is working on a Scheme for the Development of a Domestic Carbon Market. The plan will put focus on enforcing the compulsory exchange of greenhouse gas emission quotas among domestic industries and businesses in the carbon market. It will also take into account international market integration, VietnamPlus reported.
The Southeast Asian country is projected to generate about 10.8 million voluntary CO2 credits per year and has set a net zero goal by 2050. The initiative to establish a domestic CO2 credit exchange aims to support centralization, transparency and efficiency in transaction management, said Tang The Cuong, Head of the Department of Climate Change under the country’s Ministry of Natural Resources and Environment.
The project is set to pilot in 2025, with official operation of a domestic CO2 market by 2028. Vietnam needs to prepare in terms of infrastructure, techniques, inventory capacity, and corporate reporting in order to successfully implement the plan, Cuong said.
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The country currently has four existing mechanisms for carbon credits: the Clean Development Mechanism, the Joint Credit Mechanism, Gold Standard, and Verified Carbon Mechanism, said Nguyen Hong Loan, who heads the Advisory Board for the construction and operation of the voluntary CO2 credit market.
As of December last year, Vietnam has issued a total of approximately 40 million CO2-related credits, with about 50 projects seeking CO2 credit issuance under the Global Carbon Council (GCC) mechanism.
The Ministry of Natural Resources and Environment is soon to launch a national registration system, said Nguyen Van Minh, Head of the Economic and Information Unit of the Department of Climate Change. All companies and organizations that generate CO2 credits will be required to register them under this system.
In recent updates, Vietnam’s Prime Minister Pham Minh Chinh has urged the Ministry of Finance and the Ministry of Natural Resources and Environment to work on a decree regarding CO2 credit management. This decree is expected to be presented to the Government during the second quarter of next year.
In addition, the Ministry of Natural Resources and Environment has been assigned to take the lead and cooperate with the Ministry of Agriculture and Rural Development and other relevant agencies to gather insights from the experiences of other countries.
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