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HANOI: The development of a carbon credit market in Vietnam faces significant challenges, primarily due to unclear regulations.
While businesses recognise the need to reduce greenhouse-gas emissions and are eager to participate in the market, they are hindered by management and monitoring systems that require further improvement.
Carbon credits have emerged globally as a key tool in the fight against climate change, encouraging projects aimed at reducing greenhouse-gas emissions.
Hoang Van Tam, from the Energy Saving and Sustainable Development Department under the Industry and Trade Ministry, emphasised the urgency of creating a robust carbon market.
“Establishing and advancing the carbon market is crucial for enhancing national efforts to reduce greenhouse-gas emissions. It also offers an opportunity to leverage social capital in mitigation activities. Each tonne of carbon dioxide that meets market standards qualifies as a carbon credit, tradable within the market,” he said.
The draft project for developing Vietnam’s carbon market from 2025 to 2028 outlines a pilot programme set to run nationwide. By 2029, the market is expected to officially launch, with preparations underway to connect it to regional and global platforms.
In recent years, the world has faced multiple crises, including energy, environmental, and economic challenges.
In this context, carbon credits play a critical role in promoting sustainable energy solutions, reducing dependence on traditional energy sources like coal, oil and gas.
The value of carbon credits has soared as countries and businesses increasingly recognise the importance of cutting emissions to combat climate change.
The average value of carbon credits in the global market has risen significantly, reflecting growing demand from businesses and nations eager to trade carbon credits, according to the Carbon Pricing Leadership Coalition.
Regarding Vietnam’s prospects in carbon market development, Nguyen Phuong Nam, general director of Klinova Climate Innovation Consulting and Services, highlighted two major advantages based on international assessments and the country’s geographic location.
Firstly, Vietnam’s tropical climate provides ample potential for renewable energy and biomass, enhancing its capacity for carbon absorption. Secondly, the nation’s development activities create further opportunities for growth in this sector.
Professor Hoang Van Sam at the University of Forestry said Vietnam had registered and sold over 40 million carbon credits from its forests through various international mechanisms.
Ta Dinh Thi, deputy chairman of the National Assembly’s Committee on Science, Technology and Environment, acknowledged Vietnam’s early strides in carbon market development.
In 2013 the Communist Party of Vietnam Central Committee issued Resolution 24 focusing on climate change, resource management, and environmental protection.
Additionally, the Politburo’s Resolution 55 issued in 2020 outlines Vietnam’s energy development strategy towards 2030, including research into carbon tax policies for fossil fuels.
However, Thi said that the policy framework still lacked critical regulations on the ownership and transfer of carbon credits, commercial exchanges, and the management of related revenues.
Tran Hong Nguyen, vice-chairwoman of the Law Committee of the National Assembly, said that the carbon market was complex and emerging, making current policies incomplete.
“We need to establish an ecosystem and legal framework that allows businesses to operate effectively. This is the responsibility of state management agencies,” she said, expressing hope the government and relevant ministries would expedite the completion of the Carbon Market Development Project. — Viet Nam News/ANN
