Deputy minister proposes establishment of Vietnam’s national carbon credit exchange

Vietnam should consider creating a national carbon credit exchange as it moves toward developing a low-carbon economy and proactively coping with climate change, a financial official told a meeting on Monday.

Deputy Minister of Finance Le Tan Can put forward the proposal while addressing a meeting discussing a scheme on the development of the carbon credit market in Vietnam.

The launch of the national carbon credit exchange would match the country’s development orientations, its commitment to reducing greenhouse gas emissions, and an ongoing global trend of developing a carbon credit market, the official said.

The exchange would also make the most of the resources of domestic economic sectors in joint efforts to cut down on greenhouse gas emissions.

He also shared international experience, saying that many countries had set up their carbon credit exchanges.

Commodities in the local carbon market would include two types: greenhouse gas emission quotas and carbon credits allowed by the Ministry of Natural Resources and Environment to be traded on the domestic carbon credit exchange, he added.

Carbon credits are tradable certificates that give holders the right to emit a certain amount of CO2 or another amount of greenhouse gas converted to CO2 equivalents.

One carbon credit is equal to one metric ton of CO2 or one metric ton of CO2 equivalents.

Deputy Prime Minister Tran Hong Ha, who chaired the meeting, stressed that setting up the carbon credit market would help fulfill Vietnam’s commitment to net-zero emissions by utilizing economic tools to manage greenhouse gases emitted by businesses.

The Southeast Asian country’s goal is to create a transparent carbon credit market by determining the total volume of emissions and allocating gas emission quotas to localities as well as economic sectors, Ha said.

By Hong Ngan & Quang The – Tuoi Tre News – January 9, 2024