Consultation workshop Assessment of Country’s Readiness and International Experience for Carbon Trade Exchange Design

On November 28th, in Ha Noi, the Consultation Workshop on Assessment of Country’s Readiness and International Experience for Carbon Trade Exchange Design was organized under the scope of the Southeast Asia Energy Transition Partnership (ETP).

The objectives of the workshop were to present the findings and analyses of international experiences related to the establishment and operation of the carbon trade exchange (CTX), including the legal framework, institutional arrangements, and infrastructure, and key takeaways for Viet Nam; present review and assessment findings on legal framework and infrastructure in Viet Nam related to CTX; discuss and consult on the findings and the recommendations for the establishment and operation of the CTX in Viet Nam.

During the opening speech at the workshop, Ms. Ho Thi Hang, Deputy Head of the Legal Department at the Ministry of Finance, emphasized the significance of carbon markets, exchange and offset mechanisms. These aspects are being implemented by various nations to create flexible mechanisms that support mitigating greenhouse gas (GHG) emissions and foster sustainable development. Within these mechanisms, carbon markets are deemed essential tools for pricing carbon, aiming to achieve the Net Zero goal by 2050, as committed by Viet Nam.

Photo: Deputy Head of the Legal Department, Ministry of Finance had the opening speech

Mr. Do Manh Toan, the National Coordinator of ETP in Viet Nnam shared that UNOPS/ETP hopes the research outcomes of the project will assist the Government in designing, implementing, and operating CTX. This initiative aims to establish sustainable financial resources for enterprises, encouraging investments in reducing carbon emissions across various industrial sectors, ultimately aligning with Viet Nam's climate commitments within the international community.

Photo: Mr. Do Manh Toan, National Coordinator of the ETP Viet Nam had the opening speech

At the workshop, Mr. Albert de Haan and Mr. Russel Quek, the Consultant, highlighted that many countries would benefit from domestic implementation opportunities of ETS to achieve NDC targets more easily. They emphasized that combining ETS with CTX is considered the most effective tool to reach GHG emission reduction commitments. Furthermore, international experiences in establishing and operating CTX in the UK, California, and New Zealand were presented, offering valuable insights for establishing CTX in Viet Nam.

Sharing South Korea's experience in establishing CTX, Ms. Maureen Lee stressed that Viet Nam needs to formulate detailed guidelines based on Environmental Protection Law, and flexible and coherent regulations through collaboration between related ministries and departments. Deployment guidelines should be established at a lower legal level for adjustability. Utilizing existing infrastructure to save time, preparedness in terms of resources, developing specific action plans and timelines, and adjusting existing regulations from the stock market are also recommended.

In the next international experience section, Mr. Pham Phan Dung, the Consultant, presented a comparison between two options for establishing CTX in Viet Nam. Option 1 involves establishing the exchange based on existing stock exchange infrastructure, while option 2 proposes an independent model managed by MONRE. To pilot the operation of CTX under option 1, Mr. Dung proposed specific roles for relevant units and the necessity for developing legislative documents for the exchange's operation.

The seminar successfully attracted over 120 participants representing the Ministry of Finance, Ministry of Natural Resources and Environment, Ministry of Planning and Investment, Ministry of Science and Technology, Vietnam Chamber of Commerce and Industry (VCCI), along with onsite and online participation from businesses, financial institutions, and associations. Moving forward, the Consultant will continue collaborating with the Legal Department, Ministry of Finance, and relevant stakeholders to refine options and roadmap to establish and operate CTX and related potential activities in Viet Nam.

Photo: Participants in the Workshop