The carbon credit market – the road to Net Zero

On the morning of August 23rd, the People's Representatives Newspaper organized a seminar titled "The Carbon Credit Market – The Road to Net Zero," featuring information and discussions from managers, scientists , and businesses in the environmental sector.

Information presented at the seminar indicated that at COP 26, Vietnam committed for the first time to achieving net zero emissions by 2050. This goal has also been included in the National Strategy on Climate Change for the period up to 2050, according to Decision 896/QD-TTg dated July 26, 2022, of the Prime Minister .

The panel discussion included members of parliament , managers, experts, and businesses in the environmental sector.

Along with measures to reduce greenhouse gas emissions and increase greenhouse gas absorption, carbon markets are one of the effective tools to achieve the Net Zero goal. According to the Ministry of Natural Resources and Environment, as of July 2024, 48 countries worldwide had implemented mandatory carbon markets. In addition, there are voluntary carbon markets established by businesses and international organizations. Although there is no global consensus on cross-border carbon quota and credit trading, 82 countries and territories have signed agreements on carbon quota and credit trading.

In Vietnam, there are approximately 150 programs and projects that have been allocated 40.2 million carbon credits and are implemented under international carbon credit trading and offsetting mechanisms for exchange on the global carbon market.

According to the Government's roadmap, a pilot domestic carbon market will be launched in 2025 and officially operational from 2028. Following the Prime Minister's directive, the Ministry of Finance has developed a plan to establish a carbon market, aiming to develop a compliant carbon market in Vietnam, contributing to the achievement of greenhouse gas emission reduction targets under the Nationally Determined Contribution (NDC) with low costs for businesses and society, promoting the development of low-emission technologies, contributing to enhancing the competitiveness of businesses, developing a low-carbon economy, and proactively responding to climate change, towards Net Zero by 2050.

Guests pose for a commemorative photo at the seminar. Photo: Duy Thong

At the seminar, National Assembly delegates, representatives of state management agencies, experts, and businesses discussed and clarified the importance of the carbon market; the potential and opportunities for Vietnam when participating in this market, along with the difficulties and challenges; and proposed solutions to ensure the market operates according to plan and effectively. This will be a useful source of information for state management agencies in the process of building and perfecting mechanisms and policies related to the operation of the carbon market in the future.

Source: https://dangcongsan.vn/kinh-te/thi-truong-tin-chi-carbon-duong-den-net-zero-675791.html