Ho Chi Minh City will pilot the carbon credit trading mechanism from August 1, 2023.

City budget enjoys 100%

Accordingly, the pilot financial mechanism to implement measures to reduce greenhouse gas emissions according to carbon credit exchange and offset mechanisms is stipulated as follows:

Carbon credits generated from programs and projects under the carbon credit exchange and offset mechanisms invested from the City's budget are traded with domestic and international investors. The City People's Committee coordinates with the Ministries of Industry and Trade, Transport, Agriculture and Rural Development, Construction, Natural Resources and Environment to determine the contribution rate of emission reduction and greenhouse gas absorption in the City for the national greenhouse gas emission reduction target before trading carbon credits.

The City People's Committee issues procedures and decides on the selection of investors. Revenue from carbon credit transactions is 100% of the City's budget revenue; these revenues are not used to determine the percentage (%) of revenues divided between the central budget and the City budget. The City People's Council decides to use revenue from carbon credit transactions for programs and projects to respond to climate change, develop the green economy , digital economy, and circular economy in the City.

Using roofs to install solar power systems

The City People's Committee decides on the use of roofs that meet technical conditions of administrative headquarters, public service units, headquarters of agencies and units identified as public assets in the City to install solar power systems to supply electricity for the operations of the headquarters. The remaining electricity due to not being fully used shall be implemented in accordance with the provisions of the law on electricity.

The City People's Committee organizes the installation and management of solar power systems to ensure compliance with aesthetic and architectural factors and environmental regulations.

This Resolution comes into force from August 1, 2023.

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At the 2021 United Nations Climate Change Conference (COP 26), Vietnam committed to achieving net zero emissions by 2050. Currently, according to the Law on Environmental Protection, the carbon market in Vietnam will not be formed until 2028. The National Assembly Standing Committee believes that, in order to gain more practical experience before widespread application, the Resolution allows the City to exchange carbon credits according to international exchange mechanisms currently applied in Vietnam.

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