Nguyen Tuan Quang, deputy director in charge of the Department of Climate Change (Ministry of Agriculture and Environment), shared this information at the National Forum on Environment and Climate - From Policy to Action, on 5/6.
According to Decree 29, the operation of the carbon market involves many parties, including state management agencies, the State Securities Commission, and two stock exchanges. Additionally, banks and securities companies will participate in supporting transactions on the exchange.
Regulations related to the pilot carbon exchange, such as carbon transaction monitoring regulations, greenhouse gas emission quota registration systems, and carbon credits, have been issued.
According to Quang, some technical details still need completion, including the operational regulations for carbon market transactions and licensing for securities companies to participate in the market.
Regarding technical infrastructure, Quang stated that the Ministry of Agriculture and Environment has largely completed the database system for registering emission quotas and carbon credits. The system has been approved for information security and is ready for operation.
"If the remaining procedures are completed on schedule, the pilot operation of the domestic carbon exchange could be implemented in june", Quang said.
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Nguyen Tuan Quang provides information on carbon market operation. Photo: Gia Chinh |
Nguyen Tuan Quang provides information on carbon market operation. Photo: Gia Chinh
According to the carbon market development roadmap approved by the government, Vietnam will pilot a carbon exchange before its official operation in the next phase. The carbon market allows businesses to buy and sell emission quotas and carbon credits, thereby creating economic incentives for greenhouse gas emission reduction activities.
Associate Professor Nguyen Dinh Tho, deputy director of the Institute of Agricultural and Environmental Policy and Strategy, believes businesses should quickly establish transparent systems for measuring, reporting, and verifying emissions. They also need to proactively develop long-term emission reduction strategies, rather than waiting for regulations to be fully applied.
According to him, investing in technology, transitioning energy sources, and participating in carbon credit mechanisms will help businesses reduce future compliance costs. Conversely, units that delay preparation may face significant financial pressure as demand for carbon credits increases or emission regulations become stricter.
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The carbon market is expected to operate in june. Photo: Dac Thanh |
The carbon market is expected to operate in june. Photo: Dac Thanh
Businesses have begun preparing for the carbon market's operational phase. Nguyen Phu Duong, deputy general director of Vietnam Steel Corporation (VNSTEEL), stated that the company has conducted greenhouse gas inventories at its member units and reviewed major emission sources. VNSTEEL is also implementing solutions to improve energy efficiency to reduce emissions in steel production.
According to Duong, in addition to managing and optimizing allocated emission quotas, the company is researching the development of afforestation projects on existing land to create carbon credit sources for future emission offset needs.
The launch of the carbon exchange is expected to contribute to Vietnam's commitment to net-zero emissions by 2050. This will also help businesses adapt to the carbon pricing trend adopted by many countries for imported goods.
Gia Chinh
