Carbon market to be operational from 2029

Seminar on Solutions to promote participation in the carbon market of enterprises in the industry and trade sector

This is the main content of the seminar on Solutions to promote participation in the carbon market of enterprises in the industry and trade sector organized by Industry and Trade Magazine ( Ministry of Industry and Trade ) on September 4.

At the seminar, Mr. Nguyen Vo Truong An, Deputy General Director of ASEAN Carbon Credit Exchange Joint Stock Company, shared that international commitments and pressure from climate change are major driving forces for the development of the carbon market. ASEAN Carbon Credit Exchange Joint Stock Company is supporting businesses in building and registering carbon credit projects, while promoting green transformation and digital transformation to improve operational efficiency.

According to Mr. Truong An, green transformation needs to go hand in hand with digital transformation, making it easier for businesses to implement and monitor processes related to carbon credits. He also emphasized that although the carbon credit market in Vietnam is still young, interest from large enterprises and FDI corporations is increasing.

Associate Professor Dr. Luong Duc Long, Vice President and General Secretary of the Vietnam Cement Association, also shared a detailed view of the current status of greenhouse gas emissions in the cement industry. According to him, this industry contributes up to 80% of total greenhouse gas emissions in the production of construction materials. In particular, the production of clinker - a major ingredient in cement - is the main source of emissions, accounting for more than 90% of total CO2 emissions.

To reduce emissions, businesses have begun to adopt emission reduction measures such as using alternative fuels, improving energy efficiency, and deploying CO2 capture and disposal technology. The industry's goal is to reduce CO2 emissions per tonne of cement to 650kg by 2030 and no more than 550kg by 2050.

According to Mr. Hoang Van Tam, Department of Energy Efficiency and Sustainable Development (Ministry of Industry and Trade), Vietnam is actively preparing for the carbon market to officially operate from 2029. The period from now to 2028 will focus on building the legal basis, infrastructure and technical conditions necessary to deploy the carbon market. One of the important goals is to develop regulations related to greenhouse gas emission reduction and production of high-quality carbon credits. The Ministry of Industry and Trade is working to improve the capacity of businesses, help them understand the regulations and prepare to participate in the carbon market.

To develop the carbon market in Vietnam, the Ministry of Industry and Trade and relevant agencies are implementing many solutions. Mr. Hoang Van Tam said that the construction and operation of the carbon market will take a long time to complete. The Law on Environmental Protection 2020 and Decree No. 06/2022/ND-CP of the Government regulating the reduction of greenhouse gas emissions and protection of the ozone layer have provided the highest legal framework, however, specific regulations are still being implemented.

The Ministry of Industry and Trade is enhancing the capacity of enterprises to meet the process of participating in the carbon market. Enterprises will be supported in preparing goods for the market, including carbon emission quotas and carbon credits - the two main types of products that can be traded. The Ministry of Finance and the Ministry of Natural Resources and Environment are the two agencies in charge of building and operating the carbon market in the coming time./.

Source: https://dangcongsan.vn/kinh-te/thi-truong-carbon-se-chinh-thuc-van-hanh-tu-nam-2029-676660.html