Flexible solutions are needed to develop the carbon market.

On the afternoon of August 22, in Hanoi , Deputy Prime Minister Tran Hong Ha chaired a meeting to give opinions on completing the draft Project on developing the carbon market in Vietnam.

According to the latest draft, the carbon market will create new financial flows for greenhouse gas emission reduction activities, promote green transformation, develop low-emission technology, develop a low-carbon economy and proactively respond to climate change, aiming to achieve net zero emissions by 2050.

In the period from 2025 to 2028, the carbon market will be piloted nationwide; carbon credits will not be sold abroad; and activities to connect and exchange domestic carbon credits with regional and global carbon markets will not be regulated. All quotas are allocated free of charge; quota auctions have not been conducted. Greenhouse gas emission quotas are allocated to a number of large emission sectors. Types of carbon credits allowed to be exchanged and traded on the market include credits obtained from domestic credit-generating programs and projects in accordance with the law; programs and projects under the international carbon credit exchange and offset mechanism...

From 2029 onwards, the carbon market will be officially operated nationwide; continue to build and improve laws and infrastructure to connect the domestic carbon market with the regional carbon market and the world carbon market. Most of the greenhouse gas emission quotas will be allocated free of charge, the rest will be allocated through auction; consider adding more types of certified carbon credits to trade on the market.

The entities participating in greenhouse gas emission quota transactions are greenhouse gas emission facilities on the list of facilities required to inventory greenhouse gases issued by the Prime Minister. The entities participating in carbon credit transactions are organizations implementing programs and projects to create domestic carbon credits or implementing programs and projects according to the international carbon credit exchange and offset mechanism in accordance with the provisions of law and international treaties to which Vietnam is a member; organizations and individuals eligible to participate in carbon credit investment and trading activities.

Transaction support organizations are entities that carry out greenhouse gas emission mitigation appraisal; depending on the expected market size, they may include organizations that perform other transaction support tasks. The trading of greenhouse gas emission quotas and carbon credits is carried out on the domestic carbon credit exchange in a centralized manner on an online trading platform. The domestic carbon market is a compliant carbon market. The Ministry of Natural Resources and Environment is the agency responsible for operating, managing, monitoring and supervising the carbon credit market.

At the meeting, delegates focused on discussing and analyzing the addition of functions when providing carbon quota and credit trading services; coordination between the Ministry of Natural Resources and Environment and the Ministry of Finance in organizing, operating, managing, monitoring and supervising the carbon market; plans for connecting and participating with domestic and international carbon markets; solutions to prevent speculation...

Concluding the meeting, Deputy Prime Minister Tran Hong Ha emphasized that with great potential in renewable energy and carbon market, Vietnam will have great attraction for investors. Therefore, we need to have flexible, creative and breakthrough solutions in implementing the Project, quickly approaching and keeping up with the world trend. This is a game of "whoever is fast wins, whoever is smart catches up", so we need to take advantage of the opportunity to "come behind" and underdeveloped to rise up to "go along" and surpass.

The Deputy Prime Minister requested the Ministry of Finance to study and fully absorb all comments and promptly complete the draft project, not only for the carbon market but also for the organizational structure and infrastructure...

Deputy Prime Minister Tran Hong Ha assigned the Ministry of Finance, the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment and relevant ministries and branches to coordinate and determine the supply and demand of the domestic and international carbon market; build a legal framework for calculating, measuring and determining products traded on the carbon market, such as greenhouse gas emission quotas, carbon credits, etc. as a basis for developing a comprehensive plan for operating the domestic trading floor, as well as conditions for connecting with the international market to ensure transparency and publicity.

According to VNA

Source: https://doanhnghiepvn.vn/kinh-te/can-co-giai-phap-linh-hoat-phat-trien-thi-truong-carbon/20240823083512909