Hanoi (VNA)🍒 – Developing a carbon market towards net zero is an urgent requirement as it provides a crucial opportunity for mobilising financial resources to support the green transition process. And if Vietnam fails to seize this opportunity in time, these resources will fall into the hands of other countries.

This message was conveyed at a forum themed “Net Zero Vietnam 2025: Carbon Market in the New Era,” held in Hanoi on July 18.

To achieve net zero, emissions reduction is mandatory

Emphasising that Net Zero is one of the greatest commitments humanity has ever made, Le Xuan Nghia, Director of the Consultancy on Development Institute (CODE), noted that so far, there has never been a "green" commitment of such a grand scale as it involves the participation of most countries worldwide. However, he also said that the goal of reaching Net Zero by 2050 is not the final commitment in humanity’s efforts to combat climate change. He emphasised that carbon dioxide in the atmosphere had remained stable for thousands of years, but over the past 200 years, it has doubled and continues to increase at an unprecedented pace. Greenhouse gas emissions are also rising. Vietnam has now overtaken China to become the country with the fastest growing emission growth, a development that Nghia described as deeply alarming. This shift underscores the urgent need for action to address environmental challenges. Based on this reality, he stressed that reducing greenhouse gas emissions is a vital mission for humanity’s survival. He expressed the view that those who oppose Net Zero or a green living environment not because they fail to see the danger, but rather due to selfish motives. Thus, the battle against greenhouse gas emissions will not be interrupted or delayed because of a few individuals. Starting in 2027, the global aviation industry will begin taxing greenhouse gas emissions, and this tax will be directly reflected in airline tickets. Vietnamese airlines are also preparing for this, he went on. Moreover, according to Nghia, the Vietnamese Prime Minister recently issued a directive requiring more than 2,000 enterprises to report greenhouse gas emissions. This is a mandatory requirement, as the country pursues sustainable development and serious global integration.

No delays in urgent requirement

Associate Professor Dr. Nguyen Dinh Tho, Deputy Director of the Institute of Strategy and Policy on Agriculture and Environment, stated that during the 26^th꧂ United Nations Climate Change Conference (COP26), the Vietnamese Prime Minister declared that Vietnam is committed to achieving net zero emissions by 2050. Under the Nationally Determined Contribution (NDC), Vietnam is projected to emit over 900 million tonnes of greenhouse gases under the baseline development scenario. In the updated NDC in 2022, Vietnam pledged to reduce emissions by 15.8%. With international support, it could increase this reduction to 43.5%, equivalent to 45 million tonnes of CO2 emissions.

This clearly shows that to fulfill the NDC, specific financial solutions are indispensable. Without mobilising these resources, the commitments will be difficult to be realised. Therefore, the carbon market is considered one of the key solutions to implement the NDC commitments, Tho shared. According to Dr. Tuan Quang, Deputy Director of the Department of Climate Change under the Ministry of Agriculture and Environment, there are two main approaches to the carbon market: carbon taxation, and the carbon market itself. In major emitting sectors, the carbon market will play the key role in achieving emission reduction targets. Tho also emphasised that participating in the carbon market must be done wisely, not only to tap into climate finance resources but also to promote technology transition, reduce emissions, and efficiently mobilise resources for the nation./.