Hanoi (VNA) 🅠- The development of a carbon market is a crucial tool contributing to the national greenhouse gas emission reduction process. Establishing and operating this market will provide an opportunity to mobilize social capital for greenhouse gas mitigation activities.

However, to meet the commitment of achieving net-zero emissions by 2050, as pledged at the 26^th𝕴 United Nations Climate Change Conference (COP26), joint efforts from relevant authorities in building policies and mechanisms are essential, along with the active participation of the business community in applying technology and reducing resource consumption.

This idea was the main focus of a seminar on solutions to promote business participation in the carbon market, organised by the Vietnam Industry and Trade Review on September 4. According to experts, the carbon credit market in Vietnam was initiated in 2018, when the country’s first voluntary carbon credit projects were registered with leading global verification organisations, such as the Verified Carbon Standard (VCS) and the Gold Standard (GS).

However, in the early stages, these projects primarily focused on renewable energy, hydropower, and some community initiatives, with the number of credits being relatively small compared to other countries worldwide. Nguyen Vo Truong An, Deputy Director General of the Carbon Credit Trading Platform ASEAN (CCTPA), said that with the market starting in 2018, it has only been in the past two years that carbon credits, the carbon market, and related topics have begun to gain traction in society. This is when businesses started to explore and focus more on these issues. However, according to the CCTPA representative, whether in the cap-and-trade market, the mandatory market, or the voluntary market, businesses currently lack many essential factors. This presents a significant challenge for Vietnamese companies in the global arena. Nonetheless, they cannot afford to refuse participation in this market.

Therefore, to apply green transition technologies and reduce emissions, An emphasised that financial resources are crucial, as the investment requirements are significantly larger than those for traditional technologies. Once financial solutions are in place, investing in machinery, equipment, and technology becomes much simpler. Vietnam has an opportunity because it is still a new and emerging carbon credit market on the global map. With the current potential in terms of natural resources, forest area, forest cover density, and existing agricultural sectors, there is still substantial room for applying emissions reduction technologies, as little has been done so far, he stated. In this field, Vietnam has the Law on Environmental Protection, Decree 06/2022 on regulations on greenhouse gas emissions reduction and ozone layer protection, and various circulars of the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment that provide guidance on greenhouse gas emissions monitoring. These serve as a solid foundation for implementing the green transition. Hoang Van Tam from the Department of Energy Savings and Sustainable Development under the Ministry of Industry and Trade noted that previously, the carbon market and greenhouse gas emissions reduction were voluntary issues that did not significantly impact business awareness. However, these are now mandatory concerns, making them very important. He also stressed the importance of a legal framework. Creating policies that strictly regulate greenhouse gas emissions reduction and promote both voluntary and mandatory markets will yield significant benefits for society in the effort to reduce greenhouse gas emissions./.