HANOI: Vietnam is learning from international experience to develop a carbon market to ensure its suitability for the country’s legal framework and infrastructure.
The carbon market is one of the important carbon pricing tools along the way to the country’s net-zero goal by 2050, said Ho Thi Hang, deputy director of the Finance Ministry’s Legal Department.
Hang said learning international experiences in developing and operating carbon exchanges is important to choose a suitable exchange design and build roadmaps for implementation in Vietnam.
Pham Phan Dung, from the Environment and Ecology Institute, said that besides regulations related to taxes, Vietnam has developed regulations for a carbon market, but the legal framework is not sufficient for the formation and operation the market.
“It is necessary to build a carbon trade exchange to promote the development of the carbon market in Vietnam,” he said.
Two options are proposed for the carbon exchange’s design. The first is to establish an exchange based on the infrastructure system of stock exchanges. The second option is to build an exchange independent of stock exchanges, which will be run by the Natural Resources and Environment Ministry.
Dung proposed a pilot plan to operate a carbon exchange using the stock exchange’s infrastructure system.
In particular, the Natural Resources and Environment Ministry will be in charge of designing, building, and managing the market that will then establish a carbon credit and quota registration system, issue regulations for measurement, reporting and verification, and set requirements for quotas, credits, and participants.
Meanwhile, the Finance Ministry will manage the carbon exchange with the participation of the State Securities Commission, Vietnam Exchange and Vietnam Securities Depository and Clearing Corp.
What needs to be done by 2025 is to complete regulations for the domestic carbon market, including the legal framework, registration system, and infrastructure for trading, he said. Starting from 2028, the market will be piloted and put into full operation after that, he added.
According to carbon expert Albert de Haan, many countries have developed emissions trading systems (ETS) as an important solution to implement nationally determined contributions.
He stressed that the important message of the carbon market is to increase the efficient use of energy. Many countries have achieved success in implementing ETS, from which Vietnam can learn. — Viet Nam News/ANN