Vietnam is gearing up to establish its own carbon trade exchange by 2028, as outlined in a draft carbon market project by the Ministry of Natural Resources and Environment. This initiative aims to facilitate the trading and exchange of carbon credits between Vietnam and regional and international markets. The project's draft suggests pilot trading in the carbon credit market will commence as early as 2025.
Halong Bay archipelago top view from Cat Ba Island, Vietnam.
The development of the carbon trade exchange aligns with the Vietnamese government's decree, which focuses on reducing greenhouse gas emissions, safeguarding the ozone layer, and fostering carbon market growth. To this end, Vietnam plans to concentrate on formulating regulations for carbon credit management, as well as the exchange of greenhouse gas emission quotas and carbon credits, before the end of 2027.
The project entails the establishment of regulations governing the operation of the carbon credit market. It will also undertake a pilot implementation of mechanisms for trading and clearing carbon credits in potential areas in accordance with both domestic legislation and international conventions to which Vietnam is a signatory. Additionally, efforts will be made to enhance capacity and awareness regarding carbon market development.
Overseeing the trial and official operations of the carbon credit trading floor falls under the purview of the Ministry of Natural Resources and Environment, which will collaborate with relevant ministries to ensure efficient management, monitoring, and supervision of the market.
The introduction of the carbon trade exchange will reduce greenhouse gas emissions in line with Vietnam's climate commitments. It will particularly serve its objective of achieving net zero emissions by 2050, as it was established at the 26th United Nations Climate Change Conference of the Parties (COP26) in 2021.
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In parallel, the Ministry of Natural Resources and Environment has issued a circular that outlines the techniques for measuring, reporting, and assessing mitigation of greenhouse gas emissions and greenhouse gas inventory within the waste management sector. Enterprises operating in this sector must fulfil their obligations by providing relevant data and information, conducting greenhouse gas inventories, and preparing periodic inventory reports every two years, starting from 2024.
Simultaneously, enterprises in the waste sector are mandated to develop and implement measures to reduce their greenhouse gas emissions from 2023 to 2025, taking into account their specific production and business conditions. Furthermore, adherence to these measures will enable businesses to participate in the carbon market and secure additional financial resources for reinvestment.
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At DGB Group, we firmly believe that carbon markets play a pivotal role in shaping a sustainable and net-zero future. As a leading carbon project company, we recognise the significance of these markets in driving global efforts to combat climate change and achieve ambitious emission reduction goals.
Carbon markets provide a vital mechanism for incentivising emission reductions and promoting the transition to a low-carbon economy. These markets encourage businesses and organisations to invest in cleaner technologies, implement sustainable practices, and adopt innovative solutions to reduce their carbon footprint. The establishment of robust carbon markets fosters collaboration between different sectors and promotes the exchange of knowledge and best practices.
Let’s embrace the opportunities presented by carbon markets and pave the way for a cleaner, more sustainable, net-zero future.
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