Resolution No. 98/2023/QH15: pilot policies for Ho Chi Minh City’s development

Resolution 98/2023/QH15 delineates specific measures for the development of Ho Chi Minh City (HCMC), with particular emphasis on Clause 10, Article 6 pertaining to the utilisation of revenue generated from carbon credit transactions to support climate change initiatives, foster the growth of green and digital economies, and promote circular economy practices.

The financial mechanism established for piloting measures to reduce greenhouse gas emissions through carbon credit exchange and offset mechanisms is detailed as follows:

1. Carbon credits are formed through programmes and projects operating under exchange and offset mechanisms. These carbon credits are financed using the City’s budgetary funds and are traded with both domestic and international investors. The City People’s Committee collaborates with the Ministries of Industry and Trade, Transport, Agriculture and Rural Development, Construction, Natural Resources and Environment to determine the contribution rate concerning greenhouse gas emissions reduction and absorption within the city, aligning with the national objective of reducing greenhouse gas emissions before engaging in carbon credit transactions.
2. The City People’s Committee is responsible for issuing regulations, procedures, and making decisions regarding the selection of investors for these initiatives. The revenue generated from carbon credit transactions constitutes 100% of the City’s budget income. Importantly, these revenues are not considered when calculating the distribution percentage (%) between the central and City budgets.
3. The City People’s Council is authorised to determine the allocation of revenue derived from carbon credit transactions for programmes and projects aimed at addressing climate change, promoting the development of green and digital economies, and advancing circular economy practices within HCMC’s boundary.