Vietnam plans to officially run a carbon trade exchange in 2028, according to a draft carbon market project in Vietnam conducted by the Ministry of Natural Resources and Environment.
The market will enhance the activities of connecting and exchanging carbon credits between Vietnam and regional and international markets. According to the draft, the carbon credit market will commence pilot trading in 2025.
The project is based on the framework of the Government's Decree 06/2022/ND-CP, which details the reduction of greenhouse gas emissions, the protection of the ozone layer and the development of the carbon market.
Therefore, Vietnam will focus on developing regulations on carbon credit management and exchange of greenhouse gas emission quotas and carbon credits from now until the end of 2027.
The project will establish regulations on operating the carbon credit market and conduct a pilot implementation of the mechanism for exchanging and clearing carbon credits in potential areas, in accordance with domestic laws and provisions of international conventions to which Vietnam is a member.
Activities will also be carried out to improve capacity and awareness of carbon market development.
According to the project, the Ministry of Natural Resources and Environment is in charge of overseeing and coordinating with related ministries to manage the trial and official operations of the carbon credit trading floor, as well as compile regulations for managing, monitoring, and supervising the market.
The operation of the carbon trade exchange helps to reduce greenhouse gas emissions in line with previous climate commitments, particularly the goal of achieving net zero emissions by 2050 under the 26th United Nations Climate Change Conference of the Parties (COP26).
The Ministry of Natural Resources and Environment has issued Circular No. 17/2022/TT-BTNMT stipulating techniques for measuring, reporting, and assessing mitigation for greenhouse gas emissions and greenhouse gas inventory in the waste management sector, said Nguyen Tuan Quang, deputy director of the Department of Climate Change.
Enterprises in the waste sector must fulfill their obligation by providing data and information related to greenhouse gas inventory, implementing a greenhouse gas inventory, and developing a periodic inventory report every two years starting from 2024.
At the same time, enterprises in the waste sector are required to develop and implement measures to reduce their greenhouse gas emissions from 2023 to 2025 based on their production and business conditions.
In response, enterprises need to develop mitigation measures now to meet the requirements of greenhouse gas emissions reduction from 2026. Failure to do so may result in production stagnation. This is also the foundation for businesses to participate in the carbon market and increase financial resources for reinvestment.