Carbon credit market - Policies and roadmap for formation

Carbon Market discussion conducted by Vietnam Television, with the participation of Ms. To Nguyen Cam Anh, Deputy Director of the Legal Department of the Ministry of Finance; Dr. Luong Quang Huy - Head of Greenhouse Gas Emission Mitigation and Ozone Layer Protection Department, Department of Climate Change - Ministry of Natural Resources and Environment. Experts at the discussion provided a lot of new information about policies as well as a panorama of the carbon credit market in Vietnam and a number of ries around the world.

Mr. Luong Quang Huy said: According to the roadmap, by 2025, Vietnam will establish a carbon trading floor. From now until then, Vietnam will complete regulations on the application of carbon pricing tools, including a carbon credit market quota exchange system (abbreviated as ETS), and a credit creation mechanism. and domestic clearing exchanges.

To form a carbon credit market, Vietnam needs to build a database system on carbon emissions as a basis for determining greenhouse gas emission quotas for businesses. This is the basis for imposing a ceiling on the emission rights of businesses. Based on that, each enterprise that lacks an emission quota will buy back the emission rights of the excess enterprises (that is, buy carbon credits).

To date, 39 ries and 33 territories have applied carbon pricing tools to create domestic carbon markets for greenhouse gas emissions reductions. This carbon credit market can be mandatory, or voluntary. There are two types of carbon markets: Mandatory carbon markets and Voluntary carbon markets.

According to Ms. To Nguyen Cam Anh, Deputy Director of the Legal Department of the Ministry of Finance, most ries in the world have developed carbon markets on the basis of establishing a national registration system for carbon credits to manage carbon credits. carbon credits and national emission reduction goals. Besides this national registration system, they have an additional external exchange system. Some ries pursue a decentralized model, meaning carbon credits are posted on an electronic information site, where sellers and buyers can track the information. Some other ries build systems with a centralized form on the electronic transaction system. For example, South Korea is using a carbon credit exchange similar to a stock exchange for the exchange of carbon credits and quotas.

From the experiences of previous ries, Vietnam will learn to build a modern and advanced carbon credit exchange system and ensure the carbon credit exchange system is public, transparent, and transparent. protect the interests of participating subjects.