The carbon credit market plays a crucial role in achieving Vietnam's greenhouse gas emission reduction targets. To ensure the effectiveness and transparency of carbon credit trading, the Prime Minister has issued Directive No. 13/CT-TTg dated May 2, 2024, on strengthening carbon credit management to implement the Nationally Determined Contribution (NDC) program.
Previous Carbon Credit Activities
Since the mid-2000s, numerous Vietnamese enterprises have actively implemented programs and projects to generate and trade carbon credits on the voluntary international market, particularly credits arising from projects under the Clean Development Mechanism (CDM). However, many organizations, businesses, and individuals still lack a comprehensive understanding of the nature of the carbon market and the process of creating credits for participation in trading.
The Prime Minister's New Directive
Aiming to guarantee efficiency and transparency in carbon credit trading, Prime Minister Pham Minh Chinh has signed Directive No. 13/CT-TTg on May 2, 2024, regarding the enhancement of carbon credit management in implementing the Nationally Determined Contribution (NDC) program.
To substantiate international commitments to achieve net zero emissions by 2050 at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), Vietnam has updated its NDC.
The implementation of the NDC is a shared responsibility of nations to fulfill the UNFCCC and the Paris Agreement on climate change. The goal is to reduce greenhouse gas emissions in sectors such as energy, agriculture, land use, forestry, waste management, and industries.
Key Points of the Directive
The Prime Minister instructs ministries to take the lead and coordinate with relevant agencies to advise competent authorities on organizing negotiations, signing, and implementing agreements or contracts with international partners on carbon credit transfers. Simultaneously, assess the readiness of some key sectors to participate in the carbon market.
The Ministry of Natural Resources and Environment is assigned the crucial task of establishing a national carbon credit registry system. The Ministry will also be responsible for managing programs, projects, and activities to reduce greenhouse gas emissions and generate carbon credits. The objectives are to pilot, develop the domestic market, and engage in international exchanges.
The Ministry of Agriculture and Rural Development, in collaboration with localities with forests, will promptly establish a database on the status, assess the potential for emission reduction and carbon sequestration from forests at the national, regional, and local levels by 2030 and 2050.
Strengthening carbon credit market management is a critical solution for Vietnam to fulfill its international commitments to reducing greenhouse gas emissions. With the resolute direction of the government and the concerted efforts of relevant ministries and agencies, Vietnam's carbon credit market is poised for effective development, contributing to environmental protection and climate change mitigation.
Source: baochinhphu
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