Business

Carbon credit trading floor – key to Vietnam’s net zero goal

The establishment of a domestic carbon credit trading floor is expected to help improve the transparency and effectiveness of transactions related to carbon credits, thereby helping Vietnam work towards its net zero goal by 2050.
Carbon credit trading floor – key to Vietnam’s net zero goal ảnh 1Illustrative image (Photo: VietnamPlus)

Hanoi (VNA) –The establishment of a domestic carbon credit trading floor is expected to help improve the transparency and effectiveness of transactions related to carbon credits, thereby helping Vietnam work towards its net zero goal by 2050.

A representative from the Ministry of Natural Resources and Environment (MoNRE) said it is anticipated that in the future, Vietnam will have around 10.8 million voluntary carbon credits issued annually, along with corresponding demand for exchange and trading. Therefore, establishing a domestic carbon credit trade floor is a must. It is also a crucial strategy regarding the "green key" for Vietnam to achieve the net-zero emissions by 2050.

Over 1,910 firms required to undergo greenhouse gas inventory

To this end, the MoNRE is developing a domestic carbon market development project, which focuses on mandatory trading of greenhouse gas emission quotas from businesses and domestic carbon trading, aiming to connect with the international market.

The project aims to begin the pilot stage by 2025 and officially operate a carbon credit trading floor by 2028.

Tang The Cuong, Director General of the MoNRE’s Climate Change Department, said in order to realise the aforementioned roadmap, Vietnam needs meticulous preparations in terms of infrastructure, technology, inventory, and reporting capacity of businesses.

According to statistics, there are 1,912 businesses nationwide that are required to conduct greenhouse gas inventories and meet emission limits. Therefore, in the near future, the MoNRE will suggest the Prime Minister approve Vietnam's total emission limit, as well as allocation for establishments during the 2026-2030 period and on an annual basis.

Carbon credit trading floor – key to Vietnam’s net zero goal ảnh 2

Director General of the Climate Change Department Tang The Cuong (Photo: VietnamPlus)

Head of the advisory board for the development and operation of voluntary carbon credit trading floor Nguyen Hong Loan said there are four carbon credit mechanisms, including the clean development mechanism (CDM), joint crediting mechanism (JCM), gold standard (GS), and verified carbon standard (VCS).

The total volume of carbon-related credits issued in Vietnam as of December 2022 amounted to over 40 million. Additionally, around 50 carbon credit projects under the mechanism of the Global Carbon Council (GCC) have been submitted. Among these, the CDM and the JCM are managed by Government agencies.

Clear short-term goals needed

Deputy General Director of Standard Chartered Nguyen Thuy Hanh said the lender will offer sustainable development products and services while providing free consultancy to all businesses when they make new investments or have business plans aimed at emissions reduction.

Carbon credit trading floor – key to Vietnam’s net zero goal ảnh 3Demand for voluntary carbon credits is growing in recent years (Photo: VietnamPlus)

Following the trend of achieving the net zero goal, the demand for voluntary carbon credits worldwide has been increasing recently, and Vietnam is also not exempt from this trend. Most of the carbon credit projects in Vietnam are carried out through pre-purchase contracts, meaning that the party in need will place orders.

With experience in building and operating a carbon credit trading floor in Singapore, CEO of Climate Impact X Mark Glossoti said Vietnam needs to set clear short-, medium-, and long-term objectives which might change with the market, but initial steps still need to be taken.

During the fourth meeting of the National Steering Committee for the delivery of Vietnam's commitments at the 26th United Nations Climate Change Conference (COP26) held on July 14, Prime Minister Pham Minh Chinh asked the MoNRE to draft and submit a decree on carbon credit management of the Government in the second quarter of 2024 for consideration.

The MoNRE was also tasked with partnering the Ministry of Agriculture and Rural Development and relevant agencies to consult the experience of other countries. They could then advise the PM to issue directives on forest carbon credit management in Vietnam, ensuring the implementation of the nationally determined contributions and the commitment to achieving net zero emissions by 2050./.

VNA
#domestic carbon credit trading floor #Vietnamplus #Vietnam News Agency #Ministry of Natural Resources and Environment #net zero goal Vietnam
Follow VietnamPlus

Related News

Plan approved to realise net-zero emissions goal by 2050

Plan approved to realise net-zero emissions goal by 2050

The Ministry of Natural Resources and Environment has issued a plan on solutions to realise Vietnam’s commitment to cutting emissions to net zero by 2050 announced at the 26th UN Climate Change Conference (COP26) in the UK in 2021.

See more

Prime Minister Pham Minh Chinh (centre) and other delegates attend the groundbreaking ceremony for the Ninh Binh–Hai Phong Expressway Project’s section passing through Nam Dinh and Thai Binh provinces. (Photo: VNA)

Transport, industrial development essential for Thai Binh to be wealthier: PM

​The groundbreaking ceremonies of the Ninh Binh–Hai Phong Expressway Project’s section and the Hung Phu Industrial Park in Thai Binh affirm the government’s determination to create an attractive investment and business environment for both domestic and foreign investors; foster provincial and regional connectivity, generate momentum and open new development space for Thai Binh and the northern coastal region.

Representatives from Vietnam Airlines and Russia’s state-owned VTB Bank exchange the MOU on cooperation. (Photo: nhandan.vn)

Vietnam Airlines signs MoU on cooperation with Russia's VTB Bank

The MoU also demonstrates Vietnam Airlines' efforts to expand its partnership in the international market, while affirming its pioneering role in connecting Vietnam with the world, contributing to the sustainable development of Vietnam-Russia relations in the new period.

An auto assembly line at Kim Long Motor Hue in the Chân May - Lang Co Economic Zone in the central city of Hue. (Photo: VNA)

Vietnam eyes 8% growth in 2025 through strategic reforms

With decisive policy actions, proactive diplomacy and strategic reform priorities, the country is now aiming for an ambitious GDP growth target of 8% or more this year - a goal lawmakers and experts believe is within reach, provided key breakthroughs are implemented effectively.

Hanoi applies a model providing support in business establishment. (Photo: hanoimoi.vn)

Hanoi targets 30,000 new enterprises in 2025

By the end of 2024, the number of registered enterprises in the capital city reached over 400,000, with about 220,000 operating. Notably, more than 98% of the operating firms are SMEs which create jobs for 55.1% of the local workforce and contribute over 40% of the city’s gross domestic product (GDP).

Delegates press the button to activate TH Group's milk processing plant in Borovsk district in Kaluga oblast of Russia on May 11. (Photo: VNA)

TH Group inaugurates large-scale dairy processing plant in Russia

The plant has a total capacity of 1,000 tonnes per day, with the first phase producing 500 tonnes daily. All milk used at the plant is sourced from TH’s high-tech farms in the Moscow and Kaluga oblasts. TH milk boasts a high nutritional profile, with a fat content of 4.0% and protein at 3.2% — among the highest quality levels in Russia.

General Secretary of the Communist Party of Vietnam (CPV) Central Committee To Lam speaks at the Vietnam-Russia business forum in Moscow on May 11. (Photo: VNA)

Vietnam creates favourable conditions for Russian businesses: Party chief

Lam emphasised that promoting cooperation among businesses of the two sides plays an important role in implementing high-level agreements on socio-economic development. The two sides have important pillars of cooperation in energy, industry, science - technology and human resource training.

Automobile assembly at GMA Automotive Industry in Kim Dong district, Hung Yen province. (Photo: VNA)

Ample room remains for Vietnam-Belarus trade cooperation

The coming state visit to Belarus by Party General Secretary To Lam is expected to create new impetus to consolidate and strengthen the bilateral relations, and open up opportunities for businesses of the two countries in trade and investment cooperation.

Hoa Phat Group targets first railway track products to be produced by May 2027. (Photo: Hoa Phat Group)

Private sector empowers Vietnam’s steel revolution

Steel production has transformed significantly thanks to active participation from private enterprises, which have invested big in advanced production technologies and completed steel manufacturing lines with high-capacity plants, resulting in diverse and high-quality products.