Good implementation of the carbon market helps businesses and society as a whole to carry out mitigation activities of greenhouse gas emissions at low cost, promoting low-emission industrial development.
Specifically, in Document 648/VPCP-NN dated January 26, 2022, the Deputy Prime Minister requested the Ministry of Finance to report on the implementation of the task of developing financial mechanisms and policies to form and operate the financial market. carbon market in Decision No. 1775/QD-TTg dated November 21, 2012 of the Prime Minister; on that basis, assume the prime responsibility for, and coordinate with the Ministry of Natural Resources and Environment and relevant agencies in, formulating a scheme on establishing a domestic carbon market in accordance with the provisions of the Law on Environmental Protection in 2020, reporting to the Prime Minister.
According to the report of the Ministry of Natural Resources and Environment on the approval of the Carbon Market Development Scheme in Viet Nam, in the past time, many domestic organizations and enterprises have participated in the implementation of projects under the Clean development mechanism, the Common Credit Mechanism, the carbon credit exchange mechanism under the cooperative program and a number of other voluntary carbon credit exchange mechanisms. Through the implementation of these mechanisms, businesses have had more financial resources from exchanging and selling carbon credits, receiving low-emission technologies from developed countries.
In order to have a basis for exchanging and trading carbon credits between domestic organizations and enterprises, contributing to promoting the implementation of activities to reduce greenhouse gas emissions, the development of the domestic carbon market has been in place since 2011 in the Project on management of greenhouse gas emissions; managing carbon credit business activities to the world market, promulgated together with the Prime Minister’s Decision No. 1775/QD-TTg. Developing the domestic carbon market is considered a key priority task stated in the Resolution No. 24-NQ/TW of the Central Committee in 2013, the Paris Agreement implementation plan issued by the Prime Minister in 2016. However, in the recent period, Viet Nam has not been obliged to reduce greenhouse gas emissions, so businesses have no need to buy carbon credits but can only be exchanged under international cooperation mechanisms.
According to the requirements of the Paris Agreement, Viet Nam is required to fulfill its mandatory obligation to reduce greenhouse gas emissions from 2021 according to the contribution determined by the country, especially efforts should be made to implement measures to reduce greenhouse gas emissions towards the goal of achieving “zero” net emissions by 2050 as committed at COP 26. Carbon pricing tools need to be implemented and applied in our country, including the development of the domestic carbon market..
The Law on Environmental Protection passed by the XIV National Assembly at its 10th session stipulates the organization and development of the carbon market; The roadmap and time of implementation of the domestic carbon market are specified in the Decree on mitigation of greenhouse gas emissions and protection of the ozone layer. According to the Law on Environmental Protection, the development of the domestic carbon market includes the exchange of greenhouse gas emission quotas and carbon credits obtained from the carbon credit clearing and exchange mechanism. Greenhouse gas-emitting establishments that have to carry out a greenhouse gas inventory will be allocated a greenhouse gas emission quota and have the right to exchange, buy and sell on the domestic carbon market.
Implementing activities to reduce greenhouse gas emissions and developing carbon markets is an inevitable trend of the world. In order to effectively implement the provisions of the Law on Environmental Protection on the organization and development of the carbon market, it is essential to develop and implement the Project on the development of the carbon market in Viet Nam, in order to concretize contents and activities to be implemented to establish and operate a carbon market.
Good implementation of the carbon market helps businesses and society as a whole to carry out activities to reduce greenhouse gas emissions at low costs, promote low-emission industrial development, and transforming the economy model towards low carbon, contributing to improving the competitiveness of businesses and fulfilling international commitments on reducing greenhouse gas emissions as stipulated in the Paris Agreement.
According to Chinhphu.vn