Experts have shared international experience and gave recommendations for Vietnam in developing the domestic carbon market, including completing relevant institutions and policies, enhancing the quality of human resources and infrastructure systems, and promoting international cooperation mechanisms.

Amid the inevitable trend of green transition, and low-carbon development towards circular economy, the building, operation and promotion of the carbon market becomes an increasing important tool, they said at a seminar in Hanoi on November 23.

Deputy Minister of Foreign Affairs Nguyen Minh Vu said that green standards are being shaped and brought into reality in the direction of associating international trade and investment with criteria in carbon emission reduction, sustainable development, labour and environment.

Meanwhile, new green linkages and initiatives are being strengthened, which is a good time for Vietnam to set up and raise its position in the global green value chain, the official said.

Vu underlined that the development of the green financial market, especially the carbon market, will be the key to successful green transition. However, this is not an easy job, especially for developing countries which lack systematic and quality green standards and criteria, he said.

Meanwhile, Nguyen Tuan Quang, Vice Director of the Department of Climate Change under the Ministry of Natural Resources and Environment, said that Vietnam has issued important strategic documents regarding green growth and sustainable development, including a roadmap for the development of carbon pricing tools, especially the compliance carbon market.

Initially, Vietnam aims to speed up the process of building regulations on carbon credit management and greenhouse gas emission quota exchange activities and guiding the implementation of domestic and international carbon credit exchange and offsetting mechanisms in accordance with the provisions of law and international treaties and pilot a carbon credit trading floor from 2025, he said.

At the conference, representatives from the Organisation for Economic Cooperation and Development (OECD) hailed the Vietnamese Government’s efforts in promoting green growth and sustainable development, and expressed impression at the country’s commitment to net-zero emissions given at the 26th UN Climate Change Conference (COP26). They held that Vietnam boast high potential in developing a dynamic, high-quality and efficient carbon market.

Participants noted that the compliance carbon market in Vietnam is being shaped. So far, Vietnam has had 150 projects granted 40.2 million carbon credits, becoming one of the four countries with the most registered investment projects under the clean development mechanism.

A number of European businesses and experts said that the EU’s carbon credit exchange system has contributed to reducing emissions and promoting sustainable growth in profits without reducing the competitiveness of businesses, while creating new jobs and promoting the building of social climate funds to support those severely affected by carbon taxes and climate change.

The OECD representatives asserted that in order to build a carbon credit trading system, countries need to clearly define the goals and limits of the system and ensure legal transparency in related fields.

Representatives from international organisations advised Vietnam to pay greater attention to promoting a multi-stakeholder approach, strengthening cooperation among sectors, fields and levels, encouraging the participation of the private sector in the work, while building a carbon database.

They pledged to support Vietnam and cooperate with the country in promoting the carbon market.

VNA