Vietnam Undertakes Initiative to Establish a Comprehensive and Synchronized Carbon Credit Market

Vietnam Undertakes Initiative to Establish a Comprehensive and Synchronized Carbon Credit Market

Hanoi, The Gulf Observer: The carbon credit market foundation is an opportunity for Viet Nam to switch to an appropriate development model in the future, said Deputy Prime Minister Trần Hồng Hà.

Chairing a conference on a project to establish a carbon credit market in Viet Nam on Monday, the Deputy PM said that the project needed to update global policies, agreements, strategies and plans with the orientation of responding to climate change, equitable energy transition and reducing greenhouse gas emissions.

“The carbon credit market establishment will create green financial resources for technological innovation enterprises,” he said.

Deputy PM Hà said that the project must answer questions about the scope, products and operating model of the carbon credit market; thereby creating a framework, legal environment, working mechanism and technical capacity requirements for it.

The project must also define the rights, obligations and responsibilities of participating units.

Emphasising the State’s leading role, he said that it was necessary to evaluate the impact of economic, financial and tax tools to ensure domestic and international harmony and transparency in the responsibilities and rights of participants in the market.

The Deputy PM requested the Ministry of Natural Resources and Environment (MoNRE) to determine and allocate emission quotas to sectors and fields according to specific and clear plans.

The MoNRE must implement regulations on statistical mechanisms and measurements based on international standards, especially in the fields of transport, electronics and agriculture.

The Ministry of Finance (MoF) needs to call for the participation of concerned ministries, experts on greenhouse gas emission reduction, economy, finance, and international law on climate change.

The MoF should fully research policies related to the carbon credit market in other countries. From there, it must propose approaches, perspectives, goals, objectives, requirements, tasks and a roadmap for the project.

According to a report by Deputy Minister of Finance Lê Tấn Cận, the carbon credit market in Viet Nam was built in accordance with practical conditions and the country’s development orientation.

The project commits to reducing greenhouse gas emissions and being suitable with the trend of global carbon credit markets.

The project aims to ensure that the domestic carbon credit market will operate fairly, openly, transparently, safely, effectively, and in accordance with international conditions and practices.

It will increase the country’s competitiveness towards economic development with low carbon emissions and green growth associated with sustainable development.