On August 10, 2023, the kick-off meeting project "Assessment of National Readiness and International Experience in the Design of Carbon Trading Platform" was organized within the framework of the Southeast Asia Energy Transition Partnership (ETP). This project is funded by ETP, carried out in the given context that Vietnam made a strong commitment to achieving net-zero emissions by 2050 at the 26th United Nations Framework Convention on Climate Change (COP26).
To realize this ambition, Decree No. 06/2022/ND-CP, issued on January 7, 2022, by the Government on mitigation of greenhouse gas (GHG) emissions and protection of ozone layer details the organization and development of the domestic carbon market. Accordingly, from now until the end of 2027, Viet Nam has established regulations related to carbon credit management and trading activities, GHG emission allowances as well as operation of a carbon trade exchange (CTX) and is expected to establish and operate a pilot CTX from 2025 and fully operated in 2028. The Ministry of Finance (MOF), with the role of coordinating the establishment and development of CTX and formulating a financial management mechanism for the operation of the carbon market.
The project “Assessment of Country’s Readiness and International Experience for Carbon Trade Exchange Design” aims to provide MOF with a comprehensive understanding of the country’s existing relevant legal, institutional framework and infrastructure conditions and the gasp to be fulfilled for the establishment and operation of the CTX in Viet Nam. The recommendations on the appropriate legal, institutional, and technical solutions and the implementation roadmap for Viet Nam will be derived from review of lessons learned from developed CTX models in other countries, particularly countries having similar starting points and conditions as Viet Nam.
The Environment and Ecology Institute (EEI) leads the consortium, collaborating with Green Climate Innovation Company Limited (GreenCIC) and Ecoeye Co., Ltd., along with support from experienced international experts in the field, has been selected to implement this project. The project is expected to be implemented in 6 months, from August 2023 to January 2024, encompassing the following main tasks:
1. Review of international experiences and assessment of the legal, institutional, and infrastructural requirements for establishment and operation of the CTX;
2. Review of the national context and assessment of existing relevant regulations, institutions and infrastructure for establishment and operation of the CTX;
3. Analysis of legal, institutional and infrastructure gaps for establishment and operation of CTX in Vietnam and recommended solutions based on international experience and the country’s context;
4. Stakeholder engagement and consultation with relevant government authorities, financial institution and organisations, international development agencies, as well as other relevant organisations and entities;
5. Plan for a carbon market class for government officials.
The kick-off meeting project has the participation of representatives from ETP and the Consortium. During the meeting, participants discussed and reached a consensus about the overall objectives, working approach, and crucial next steps. This marked the initial phase in building a robust collaborative foundation, ensuring the future success of the project.
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Picture: Participants in the kick-off meeting project
