Carbon credit market: Not only the trading of credits or quotas, but the market for international carbon profile building services is also quite vibrant.
25,000 USD per carbon credit advisory file
According to the Carbon Credit Trading Platform ASEAN (CCTPA), the current transaction fee is $0.04 per i-REC certificate, while carbon credit transaction fees are charged at 2% of the total transaction value.
With features for environmental data monitoring, Sustain.Life states it can identify emission sources, provide rapid calculations, and ensure compliance with regulations at a cost of around $4,000 per year.
For the application of UAV and LiDAR technology to carbon inventory for forests. Provide reports on the potential carbon credit inventory and the feasibility of carbon credit projects, financial support for forest protection and development efforts, with transaction fees currently priced at around 300 USD/ha.
On the ASEAN carbon credit market, some companies also offer comprehensive carbon credit project solution consulting services from planning to project completion. The consulting fee currently ranges around 25,000 USD per project dossier.
In addition, the businesses also commit to the output of all carbon credits from the project, ensuring a stable revenue stream and reducing market volatility risks.
CT Group, a company with offices in Vietnam, reports that consultancy fees for reports such as Greenhouse Gas Inventory Reports (ISO 14064-compliant), ESG Reports, CBAM Reports, Carbon Neutrality Reports, Emission Reduction Reports, and Pre-Feasibility Studies for sustainable projects start from $1,000 per report.
Custodians and Settlement Banks Face Tight Regulations
To ensure transparency in transactions, the Ministry of Finance, in its draft proposal for developing a domestic carbon market, emphasizes the involvement of custodians and banks.
According to the proposal of the Ministry of Finance, in order to qualify as a trading member on the carbon market, a company must meet IT infrastructure, business process, and human resource requirements as per the regulations of the Hanoi Stock Exchange.
Registered businesses need to prove the legality of their securities trading activities. Must have a depository member certificate issued by the Vietnam Securities Depository and Clearing Corporation. At the same time, demonstrate the capability in information technology infrastructure, business processes and personnel.
Transaction members have the right to provide greenhouse gas emission quota trading services and carbon credits to customers; Collecting transaction service fees from customers in accordance with the law.
These companies are obligated to ensure that both themselves and their trading counterparties, who are their customers, have sufficient funds and greenhouse gas emission quotas, carbon credits before conducting transactions, and simultaneously verify the validity and legality of the transaction orders in accordance with the law.
Ensuring the accuracy and completeness of transaction information, facilities, and technical equipment serving the activities of trading greenhouse gas emission quotas and carbon credits. At the same time, they must comply with reporting obligations and other duties as prescribed by law and the regulations of the Hanoi Stock Exchange.
For custodial members, the Ministry of Finance has proposed two options. Among them, option 1 is that these enterprises must be organizations certified by the Ministry of Finance as qualified to provide transaction support services on the carbon trading market. Option 2 is that the securities company has been granted a Securities Business License by the State Securities Commission of Vietnam.
For Settlement Bank, in addition to legal requirements, the Ministry of Finance’s proposal also requires the bank to have a charter capital of over 10 trillion VND, profitable business operations in the last 2 years, and to meet the minimum capital adequacy ratio as per banking regulations.
