Illustrative image (Photo: https://www.eastasiaforum.org/) Sydney (VNA) – After basicallycontaining the spread of COVID-19, Vietnam is becoming the first developingcountry to adopt carbon pricing in the post-pandemic period to help guide acleaner recovery, the site eastasiaforum.org reported in an article onNovember 19.
On 17 November, Vietnam’s National Assembly passed the revised Law on Environmental Protection legalising an emission trading scheme, it said,noting that the law will take effect on 1 January 2022.
The policy is expected to strengthen Vietnam’s commitment togreenhouse gas emission reductions under the Paris Agreement on climate change.It paves the way for the country to further tap its significant renewable energy potential, and switch to a low-carbon development model in thepost-COVID-19 recovery era.
The law stipulatesthat the Government will establish a carbon emission trading scheme that suitsthe local context and complies with international climate change treaties.Details such as targets, timelines and regulated industries will be specifiedlater in a government decree, the site said.
The law also legalises enabling policies such as national greenhouse gasemission inventories, and the monitoring, reporting and verification ofemissions, it added.
According to the article, by adopting carbon pricing, Vietnam will strengthenits position to reap additional benefits from free trade withthe European Union (EU). Carbon pricing has the potential to improve Vietnam’simage internationally, as well as contribute to reducing climate change impactsand environmental pressures.
Vietnam is highly vulnerable to climate change. Extreme weather events are intensifying and becoming more frequent.Rising sea levels risk inundating important economic zones in coastal areas,potentially displacing millions of Vietnamese people.
Carbon pricing is a policy instrument that places a cost on greenhouse gases.With a carbon price in place, a market-based economy will have an incentive tosteer itself in a low-emission direction.
By mid-2020, 61 carbon pricing initiatives hadbeen implemented or scheduled for implementation worldwide. Before Vietnam, ahandful of developing countries had adopted carbon pricing, including China,South Africa and Kazakhstan.
Vietnam’s adoption of carbon pricing willhopefully encourage other countries to commit to reducing greenhouse gases. Thepost-COVID-19 period is an ideal time to adopt a carbon price, setting foundationsfor a green recovery./.
VNA
