The upcoming carbon market in Vietnam will open up great opportunities for businesses to reduce greenhouse gas emissions and participate in the green economy. However, to realize this goal requires careful preparation and close cooperation among stakeholders.
This is the main content of the discussion on promoting businesses to participate in the carbon market organized by Industry and Trade Magazine (Ministry of Industry and Trade).
Opportunities and challenges when participating in the carbon market
According to Mr. Hoang Van Tam, Department of Energy Efficiency and Sustainable Development (Ministry of Industry and Trade), Vietnam is actively preparing for the carbon market to officially operate from 2029. The period from now to 2028 will focus on building the legal basis, infrastructure and technical conditions necessary to deploy the carbon market. One of the important goals is to develop regulations related to greenhouse gas emission reduction and production of high-quality carbon credits. The Ministry of Industry and Trade is working to improve the capacity of businesses, help them understand the regulations and prepare to participate in the carbon market.
Mr. Nguyen Vo Truong An shared at the seminar
At the seminar, Mr. Nguyen Vo Truong An, Deputy General Director of ASEAN Carbon Credit Exchange Joint Stock Company, shared that international commitments and pressure from climate change are major driving forces for the development of the carbon market. ASEAN Carbon Credit Exchange Joint Stock Company is supporting businesses in building and registering carbon credit projects, while promoting green transformation and digital transformation to improve operational efficiency.
According to Mr. Truong An, green transformation needs to go hand in hand with digital transformation, making it easier for businesses to implement and monitor processes related to carbon credits. He also emphasized that although the carbon credit market in Vietnam is still young, interest from large enterprises and FDI corporations is increasing.
Mr. Luong Duc Long shared at the seminar
Associate Professor, Dr. Luong Duc Long, Vice President and General Secretary of the Vietnam Cement Association, provided a detailed view of the current status of greenhouse gas emissions in the cement industry. According to him, this industry contributes up to 80% of total greenhouse gas emissions in the production of construction materials. In particular, the production of clinker – a major ingredient in cement – is the main source of emissions, accounting for more than 90% of total CO2 emissions.
Specifically, the three main sources of emissions in cement production include: from raw materials (57%-58%), from the clinker burning process (36%-38%) and from electricity use (5.5%-6%). To reduce emissions, businesses have begun to apply emission reduction measures such as using alternative fuels, improving energy efficiency, and deploying CO2 capture and landfill technology. The industry’s goal is to reduce CO2 emissions per ton of cement to 650kg by 2030 and no more than 550kg by 2050. Mr. Hoang Van Tam said: “Participating in the carbon market is a strategic step to help businesses not only minimize environmental risks but also increase their ability to adapt to increasingly stringent regulations of the global market”.
Capacity building for businesses
To develop the carbon market in Vietnam, the Ministry of Industry and Trade and relevant agencies are implementing many solutions. Mr. Hoang Van Tam said that the construction and operation of the carbon market will take a long time to complete. The Law on Environmental Protection 2020 and Decree No. 06/2022/ND-CP of the Government regulating the reduction of greenhouse gas emissions and protection of the ozone layer have provided the highest legal framework, however, specific regulations are still being implemented.
Mr. Hoang Van Tam shared at the seminar
The Ministry of Industry and Trade is enhancing the capacity of enterprises to meet the process of participating in the carbon market. Enterprises will be supported in preparing goods for the market, including carbon emission quotas and carbon credits – the two main types of products that can be traded. The Ministry of Finance and the Ministry of Natural Resources and Environment are the two agencies in charge of building and operating the carbon market in the coming time.
Overall, close coordination between the Government, businesses and consulting and support organizations will promote the carbon market in Vietnam. With current efforts and careful preparation, the carbon market promises to become an important tool in reducing greenhouse gas emissions and promoting sustainable development .
Source: Saigon Giai Phong newspaper
