Indonesia has also identified 18 priority sites under its Blue Carbon Reserve Zoning Plan, covering both national strategic and provincial areas. Notable locations include the Derawan Islands, the Tanimbar Islands, Supiori Island, Lingga waters, the northern coast of Java, as well as areas in Kalimantan and Sulawesi.
Under the new framework, companies and other regulated entities will trade both emission quotas and carbon credits through securities accounts at licensed brokerage firms.
Emphasising that Net Zero is one of the greatest commitments humanity has ever made, Le Xuan Nghia, Director of the Consultancy on Development Institute (CODE), noted that so far, there has never been a "green" commitment of such a grand scale as it involves the participation of most countries worldwide.
The draft decree on forest carbon sequestration and storage services marks the first attempt to establish a domestic standard for forest carbon while aligning with international carbon credit systems. It clearly defines eligible service providers and buyers, allowing both public and private entities to supply or purchase credits through contracts or a national carbon exchange.
With its diversity, ranging from livestock, crop cultivation, and forestry, Vietnam’s agriculture sector has great potential to shift towards low-carbon emission production.
Vietnam plans to launch a pilot carbon trade exchange in June, and officially operate and connect it with regional/international floors in 2029.
The project is designed to accelerate the development of a low-carbon economy and address climate change, working toward the goal of achieving net-zero emissions by 2050.
Carbon is an intangible commodity, but it is a product with significant value and potential for investment and business opportunities. However, it also presents many challenges for Vietnamese businesses that are not yet fully prepared, said experts at a seminar in Hanoi on December 25.
Prime Minister Pham Minh Chinh on December 9 issued a directive to push ahead with the implementation of the national green growth strategy for 2021 - 2030 with a vision to 2050, a bold step to deliver on the carbon neutraility target.
Vietnam needs to establish a specific roadmap for the transition to green energy as well as design and manage the emissions trading system toward the official operation of the carbon market in 2028, according to experts.
Vietnam will operate its carbon credit market on a trial basis during 2025-2028 without any sales to foreigners as well as regulations on credit exchanges with regional and global markets, heard a meeting in Hanoi on October 7.
The development of a carbon market is a crucial tool contributing to the national greenhouse gas emission reduction process. Establishing and operating this market will provide an opportunity to mobilize social capital for greenhouse gas mitigation activities.
Indonesia's Investment Minister Rosan Roeslani, who is also head of the Investment Coordinating Board (BKPM), is currently on a visit to Singapore with a view to attracting more investment to the archipelago nation.
With its tremendous potential in renewable energy and the carbon market, Vietnam will be highly attractive to investors, Deputy Prime Minister Tran Hong Ha stressed, while addressing a meeting in Hanoi on August 22 on seeking ideas towards completing a draft plan on carbon market development in Vietnam.
A carbon market will create motivation for green transition, said Deputy Prime Minister Tran Hong Ha on July 12.
Prime Minister Pham Minh Chinh emphasised the urgent need to develop a carbon market and carbon credit management mechanisms in his recently-issued directive.
