Vietnamese Prime Minister Pham Minh Chinh recently approved a project to set up and develop a domestic carbon market.
The key target is to help meet greenhouse gas (GHG) emission reduction targets set in the nationally-determined contributions (NDC), while minimising costs for businesses and society.
The initiative aims at creating new financial flows for GHG reduction efforts, support the transition to green technologies and enhance the competitiveness of Vietnamese businesses in both domestic and international markets.
The key target is to help meet greenhouse gas (GHG) emission reduction targets set in the nationally-determined contributions, while minimising costs for businesses and society.
It also aims at boosting the management capacity of relevant government agencies and raise awareness.
The project is also 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, a domestic news agency reported.
The project targets to complete the legal framework for the exchange of GHG emission quotas and carbon credits, including development of mechanisms for carbon credit trading and offsetting, by June 2025, and set up necessary infrastructure for carbon market operations.
It also aims at boosting the management capacity of relevant government agencies and raise awareness among businesses, organisations and individuals about the carbon market.
Outlining a detailed road map for the carbon market, with a pilot phase running from 2025 to 2028 and the market officially launching nationwide in 2029, the project introduces two primary market commodities: GHG emission quotas and certified carbon credits, which will be tradable.
Key tasks include developing the carbon market’s commodities, registering participants, creating a national registry and carbon trading platform, organising market operations and enhancing awareness and capacity building.
Fibre2Fashion News Desk (DS)