The Government Office has issued Document No.648/VPCP-NN on January 26, approving the carbon market development scheme in Vietnam.
|A carbon market is hoped to increase the chances for a sustainable Vietnam |
Deputy Prime Minister Le Van Thanh asked the Ministry of Finance (MoF) to report the building of policies and financial policies for the development and operation of the market in line with the prime minister’s Decision No.1775/QD-TTg dated November 21, 2021.
The MoF works with the Ministry of Natural Resources and Environment and other relevant agencies on the development of the carbon market in line with the Law on Environment Protection 2020 and then reports to the prime minister.
As a country heavily suffering from climate change and discharging over 120 million tonnes of solid waste per year, along with its infamous traffic jams, Vietnam has been regulating varying policies to build a carbon credit market, in an attempt to cut emissions along with global goals.
According to the World Bank, the future of the carbon market is very complicated. For developing countries like Vietnam, joining the market is not only about lining up with the world’s target of reducing greenhouse gas but also about creating income and receiving modern technologies with fewer carbon emissions.
The bank added if developing countries like Vietnam cannot harmonise state policies with international ones, they will not be able to overcome barriers of finance and technologies in the process of participating in a low carbon market.