Improve the capacity of building green financial policies for Finance officers

During 2 days (March 27-28, 3), the Ministry of Finance coordinated with the French Development Agency (AFD) to organize a specialized training program on environmental taxes, carbon markets and green bonds. Attending the training program were experts from France and representatives of a number of specialized units under the Ministry of Finance.

Overview of the training program on March 27, 3. 

On March 27, French experts gave presentations on methodology and steps to design and implement a carbon pricing system; Carbon pricing scenarios in Vietnam and the advantages and disadvantages of each method.

According to Ms. Anais Delbosc - a French expert, when implementing carbon pricing, it is necessary to set carbon pricing goals, especially goals related to emission reduction to be able to provide policy directions. to achieve that goal. Then tools will be identified to achieve the goals. Regarding policy goals, long-term national policies on emission reduction and specific characteristics of each country will have to be introduced. In Vietnam, the Government has made many efforts to put the goal of achieving net zero emissions on the agenda. This is a pretty clear goal.

Step two is to provide policy directions, which sectors will apply the carbon pricing system and the impact of applying that system on each sector. On that basis, choose the tools to use. From there, evaluate and improve the tool.

During the design stage, it is necessary to determine the tax scope and tax rate; taxable subject; Institutions. Tax collection agencies, tax use agencies, and emission control agencies also need to be clear. How are the proceeds used? Unwanted impacts and solutions to limit those impacts are also important contents.

Providing 6 scenarios for 8 emission sectors and analyzing the advantages and disadvantages of each carbon pricing scenario in Vietnam, Mr. Patrick Criqui - a French expert said that depending on the conditions of his country, the Government The government considers applying different carbon pricing scenarios, such as: applying a 100% carbon tax or using an emissions trading system for large emitters in the energy and industrial sectors. energy-intensive industries or carbon taxes on transportation fuels for energy and heavy industry emissions trading systems; apply an energy emissions trading system with a carbon tax for all energy products with 100% of emissions from energy; Applying emission quotas is not based on absolute value but is based on performance standards... However, whether applying tax or quota tools or combining the two tools, it is necessary to determine the advantages and disadvantages of each. method to consider which measures are more concerning and which measures are acceptable. This is a really difficult problem…

Mr. Patrick Criqui - French expert presented at the Training Program. 

This expert emphasized that direct emissions are important for regulating emissions through carbon pricing. For fields subject to tax regulation, the tax rate is chosen by the Government. The results of quantitative adjustments are uncertain and can only be predicted through economic modelling. As for sectors subject to quotas, the number of quotas is determined by emissions targets but there is uncertainty about the price of the quota.

Sharing their experience in using revenue from carbon pricing, French experts said that money collected from carbon pricing can be used for different purposes, not necessarily for one goal. Revenue from carbon pricing can be used to support other climate policies (e.g., investing in low-emission infrastructure; encouraging industry to invest in energy efficiency) and clean energy technology; encourage emission reduction in areas not yet covered...); improve overall economic efficiency (support fiscal reform, reduce government debt); address distributional concerns and generate public support for carbon pricing.

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