According to the roadmap, by 2025 our country will establish a carbon trading floor. Domestic and international experts say that Vietnam has great potential for carbon credit supply, expected to bring high economic benefits. Developing the carbon credit market will help Vietnam green the economy and improve the competitiveness of businesses in exporting goods.
The big road has opened for the carbon credit market
Associate Professor, Dr. Thai Van Nam - Director of the Institute of Postgraduate Training, City University of Technology. Ho Chi Minh City (HUTECH), said Vietnam has participated in the carbon credit market and is currently ranked 5th among countries that create carbon credits and has earned VND 1.200 billion through selling these credits.
According to the roadmap, by 2025 our country will establish a carbon trading floor. In 2023, in the forestry sector, Vietnam successfully sold 10,3 million forest carbon credits through the World Bank (WB) at a unit price of 5 USD/ton, earning 51,5 million USD (about 1.200 billion VND). This is the beginning of the potential for selling forest carbon credits.
To date, the Vietnam Forest Protection and Development Fund has received the first payment amount from the WB of 1 million USD and has fully disbursed it so that the provinces can urgently make plans to pay the forest owners in this area. 41,2 North Central provinces.
From the above success, economic experts believe that Vietnam is one of the countries with rich forest potential, with more than 14,7 million hectares, reaching a coverage rate of over 42%. Vietnam's carbon credit transfer is highly appreciated by the WB.
According to Mr. Nam, Vietnam has implemented a number of mechanisms and policies to promote energy transition in an effective and sustainable way to reduce emissions and become carbon neutral. Dr. Le Hoang The - Director of The VOS Ecosystem Company Limited, said that Vietnam is one of the countries with the highest carbon emission growth rate in the world, among the group of 20 countries by 2022.
In order to reduce emissions, the Prime Minister soon established a National Steering Committee to implement Vietnam's commitments at COP26, approved a project on tasks and solutions to implement the results of COP26 Conference, and strategies National climate change plan up to 2050, action plan to reduce methane emissions up to 2030.
To gradually realize zero emissions, countries currently use two main tools: the carbon credit market and carbon tax. The EU recently announced that it will apply a carbon tariff on products imported into the bloc starting in 0. Accordingly, foreign businesses must have green, organic or green products when exporting. carbon. Otherwise, high carbon taxes will be imposed.
According to Mr. Le Hoang The, India and China are the two countries that sell the most carbon credits. In Vietnam alone, it is estimated that there are about 2 million carbon credits, equivalent to 57 million tons of CO52 that can be sold to businesses and international organizations, expected to bring high economic benefits to Vietnam, at low prices. The value is expected to increase nearly 2 times by 100.
Develop a synchronous and comprehensive carbon credit market
In fact, the implementation of the carbon market receives special attention from the Government and directs the development of the project, in which the Ministry of Finance plays an important role. Recently, Deputy Prime Minister Tran Hong Ha also gave instructions on developing the carbon credit market synchronously and comprehensively.
Accordingly, the project must "answer" questions about the scope of implementation, products, and operating model; From there, create the framework, legal environment, organizational capacity, operating mechanism, and technical capacity requirements to establish and develop synchronously and comprehensively the carbon credit market; rights, obligations and responsibilities of participating entities.
The Government assigns tasks to ministries and branches to assess the impact of economic, financial and tax tools, ensuring domestic and international harmony, transparency in responsibilities and rights of subjects. Participate in the market for exchanging emission quotas and carbon credits.
In particular, the Ministry of Finance is tasked with mobilizing the participation of representatives of relevant ministries and branches, a team of experts on greenhouse gas emission reduction, economics, finance, and international law on climate change. climate change; Research fully, comprehensively, and thoroughly on the formation of policies related to the carbon credit market in other countries; From there, propose approaches, perspectives, goals, objectives, requirements, tasks, and roadmap for implementing the project.
From the perspective of a policy-making agency, Deputy Minister of Finance Le Tan Can also shared that the carbon credit market in Vietnam is built in accordance with practical conditions and the country's development orientation, committed to international agreements to mitigate greenhouse gas emissions and the trend of developing the global carbon credit market, contributing to making the most of the resources of domestic economic sectors in participating in emission mitigation activities. Greenhouse gas.
The project aims to ensure that the domestic carbon credit market operates fairly, publicly, transparently, safely, effectively, in accordance with international conditions and practices; harmonize the interests of entities in the carbon credit market, increase national competitiveness towards low-carbon economic development and green growth associated with sustainable development.
Businesses expect to soon establish a carbon credit market
Faced with the requirements of green growth and the pressure of carbon taxes, businesses with large emissions or exporting businesses have begun to look for sources of carbon credits.
Mr. Hoang Duc Vuong - Chairman of the Vietnam Recycled Plastics Association, said that major importing countries have and are having many policies to promote green production and export. According to the provisions of Decree No. 06/2022/ND-CP of the Government: regulations on mitigating greenhouse gas emissions and protecting the ozone layer, the carbon trading floor will be piloted in 2025 but currently, When entering Vietnam, foreign businesses and investors all express their interest in where green energy comes from and where carbon is exchanged? These are two big questions of investors instead of their previous concerns related to labor costs.
Agreeing with the above viewpoint, Mr. Nguyen Phuoc Hung - Vice Chairman of the City Business Association. Ho Chi Minh City, also expressed the wishes of businesses that they hope the authorities will soon issue a program to reduce greenhouse emissions according to a specific roadmap, build a green index, and establish a green market. carbon credit market and policies to develop clean energy, rooftop solar power... These recommendations are considered solutions to help businesses improve their competitiveness and participate in the global supply chain.
The growing green economic trend creates opportunities for a number of businesses to trade carbon credits that meet independent international standards under a voluntary mechanism. Typically, an Intraco member enterprise received more than 20 million USD and transferred more than 1 million carbon credits to partner Citigroup, out of a total of 7,9 million carbon credits that will be transferred in the years from 2022. – 2024.
The article is taken from Vietnam Financial Times: https://thoibaotaichinhvietnam.vn/nhieu-tiem-nang-du-dia-trien-khai-thi-truong-tin-chi-carbon-149628-149628.html