Vietnam to strengthen carbon credit management

The prime minister signed Directive 13/CT-TTg on May 2, allowing for the strengthening of carbon credit management to implement the Nationally Determined Contributions.

PM Chinh requested the involvement of the ministries of Industry and Trade, Transport, Construction, Agriculture and Rural Development, and Natural Resources and Environment to issue plans by the third quarter this year to mitigate GHG emissions in line with Decree No.06/2022/ND-CP on emission reduction, ozone-layer protection, and the development of a carbon market.

Specifically, the Ministry of Natural Resources and Environment (MoNRE) was assigned to establish a national registration system for carbon credits, management of programmes, projects, activities to reduce GHG emissions, and create carbon credits for the implementation of a pilot scheme.

The MoNRE was tasked with drafting a new decree to amend and supplement several articles of Decree 06, which currently does not regulate the issuance of approval letters for international carbon credit transfers. The new decree must be submitted to the government by the end of July.

The Ministry of Agriculture and Rural Development (MARD) has been requested to work with relevant agencies and forest localities to build a database on the current status and evaluate the potential of reducing emissions and absorbing carbon from forests at national, regional, and local levels towards 2030.

By the end of October 31,the MARD, along with relevant agencies and forest localities, must completely define the potential for carbon credit sales and propose pilot policies and mechanisms for results-based carbon credit payments for high-quality, low-emission rice farming.

The Ministry of Finance has also been asked to collaborate with the MoNRE to finalise the development of a domestic carbon market in Vietnam.

The opportunities and challenges presented by operating a carbon credit market in Ho Chi Minh City in line with the World Bank were the main talking points of a meeting on January 24 between Chairman of Ho Chi Minh City People's Committee Phan Van Mai and World Bank experts at an investment conference centred around green growth on January 24.

On the sidelines of an investment conference centred around green growth on January 24, Muthukumara S. Mani, Lead Environmental and Climate Change Economist, Southeast Asia Region at the World Bank, spoke with VIR’s Bich Ngoc on the importance of the Vietnam’s carbon credit market development.

FPT IS and Carbon EX, a carbon credit trading platform and renewable energy certificate issuer in Japan, signed an MoU to collaborate in providing services and solutions to promote carbon credit projects adhering to global standards such as Verra Carbon Standard, Gold Standard, and J-Credit.

Vietnam is capable of selling some 40 million carbon credits for a revenue of 200 million USD annually, the Department of Forestry has calculated.

Vietnam has received a 51.5-million-USD payment for verified emissions reductions (carbon credits) for reducing deforestation and forest degradation (commonly known as REDD+) and for enhancing carbon stored in forests through reforestation and afforestation.