Flexible solutions crucial to develop carbon market: Deputy PM

Deputy Prime Minister Tran Hong Ha chairing meeting on seeking ideas towards completing a draft plan on carbon market development in Vietnam (Photo: VNA)

Hanoi - With its tremendous potential in renewable energy and the carbon market, Vietnam will be highly attractive to investors, Deputy Prime Minister Tran Hong Ha stressed, while addressing a meeting in Hanoi on August 22 on seeking ideas towards completing a draft plan on carbon market development in Vietnam.

Ha highlighted the need for flexible, innovative, and breakthrough solutions in implementing the plan, and quickly adapting to and keeping up with global trends.

This is a game where the swift win, and the smart seize opportunities, he noted, emphasing the importance of bringing into play these opportunities to move from being behind and less developed to going "side by side" and eventually leading.

The official requested the Ministry of Finance to thoroughly consider and acquire all feedback, and quickly finalise the draft plan for not only the carbon market but also the organisational apparatus and infrastructure.

Besides, the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment, and other relevant ministries and agencies are tasked to join hands in defining the supply and demand of the domestic and international carbon markets; and developing a legal framework for the calculation, measurement, and identification of trading products in the carbon market, such as greenhouse gas emission quotas and types of carbon credits. This framework will serve as a basis for designing a comprehensive operational plan for the domestic trading platform, as well as a condition for connecting with the international market to ensure transparency and openness.

In the latest draft, the carbon market will create a new financial stream for greenhouse gas emission reduction activities, promote green transition, develop low-emission technologies, foster a low-carbon economy, and proactively respond to climate change, aiming for net-zero emissions by 2050.

In the 2025-2028 period, the carbon market will be piloted nationwide, carbon credits will not be sold abroad, and there will be no regulations for connecting or exchanging carbon credits domestically with regional and global carbon markets.

From 2029 onwards, the market will be officially operational nationwide. During this period, efforts will continue to build and better the legal framework and infrastructure necessary for connecting the domestic with regional and global carbon markets.

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