VN needs an appropriate ETS mechanism to develop carbon market

According to the Ministry of Natural Resources and Environment, about 70 countries and territories in the world already have a carbon market, which currently controls about 11 billion tonnes of carbon, equivalent to 20 per cent of global emissions.
The Ô Môn 1 thermoelectricity plant in Cần Thơ Province. About 150 large emission-emitting enterprises in the fields of iron, steel, cement and thermal power production will be joining the carbon market in the trial phase from June 2026 to 2028. — VNA/VNS Photo Thanh Liêm
The Ô Môn 1 thermoelectricity plant in Cần Thơ Province. About 150 large emission-emitting enterprises in the fields of iron, steel, cement and thermal power production will be joining the carbon market in the trial phase from June 2026 to 2028. — VNA/VNS Photo Thanh Liêm

Việt Nam will start to pilot the implementation of emissions trading system (ETS) from June 2025, working towards official operation in 2028 and connection with international markets from 2030, according to the Ministry of Natural Resources and Environment (MNRE).

To realise these goals, Việt Nam needs to develop a roadmap for energy transition, together with a plan for operating and managing the ETS appropriate to the country’s conditions.

Nguyễn Tuấn Quang, deputy director of the MNRE Climate Change Department, said that as a country heavily affected by climate change, Việt Nam had actively participated in international efforts on climate change and had made bold commitments to reduce greenhouse gas emissions.

Specifically, Việt Nam had committed to achieve Net Zero by 2050.

One of the important solutions is to accelerate the transition from brown energy to green energy, strengthen the efficient use of energy and resources through the application of advanced, low-emission technologies and circular economic models, according to Quang.

Việt Nam also needs to promote green production together with the development of forests and ecosystems to increase greenhouse gas absorption. For example, in the agricultural sector, the project of developing 1 million hectares of low-emission high-quality rice is estimated to help reduce emission by 3-5 tonnes CO2 per ha.

Last but not least, carbon pricing is critical.

About 70 countries and territories in the world are applying carbon tax to a carbon market which currently controls about 11 billion tonnes of carbon, equivalent to 20 per cent of global emissions, according to the ministry.

“This is an inevitable trend and Việt Nam is also preparing to establish a domestic carbon market,” Quang said.

"As planned, Việt Nam will start to allocate quotas and pilot the trading from June 2025, so there is not much time left for preparations.

"The legal framework has been being established. What needs to happen now is to access the impacts at macro level and on companies, from which the operation and management plan for the ETS will be developed to ensure appropriateness to Việt Nam."

During the pilot implementation, about 150 large emission-emitting enterprises in the fields of iron, steel, cement and thermal power production would be joining the carbon market, Quang said.

According to Frederic Ggnon-Lebrun, global director for climate policy, finance and carbon markets at South Pole, transparency in management is vital. The government should simplify rules and requirements to facilitate management and make it easier for carbon market participants to set up financial models.

The Director of Green Climate Innovation Company Limited (GreenCIC), Nguyễn Hồng Loan, said that evaluating the impacts of the ETS would focus on analysing the specific impacts on society, economy and environment, especially on energy consuming industries, assessing the impacts of carbon credit trading and the results of greenhouse gas emission reductions, which would serve as base to develop optimal solution for managing carbon market towards efficient operation in Việt Nam.

A mangrove forest in Bình Định Province. Việt Nam will start to pilot the implementation of emissions trading system (ETS) from June 2025 towards official operation in 2028. — VNA/VNS Photo Tường Quân
A mangrove forest in Bình Định Province. Việt Nam will start to pilot the implementation of emissions trading system (ETS) from June 2025 towards official operation in 2028. — VNA/VNS Photo Tường Quân

"A carbon market is not only an environmental solution but also a promising economic opportunity," Nguyễn Tú Anh, director of the Centre for Economic Information, Analysis and Forecasting under the Central Economic Commission, said.

The carbon market was expected to encourage enterprises to invest in green and efficient technologies, thereby reducing production costs and improving competitiveness. At the same time, the new financial flows created from carbon credit trading would promote emission reductions and transition towards a low-emission economy, Anh said.

It was necessary to raise awareness of the business community and the society about the role and operating mechanism of the carbon market, he said.

He cited findings of a survey on 537 enterprises that 30 per cent of them had basic understanding of the ETS and carbon market.

A comprehensive and compatible legal framework that clearly defines rights and obligations of the market participants, principals of products, principals of ownership, pricing mechanism and standards was needed for the formation and development of a carbon credit market, he stressed.

"It is also important to determine demand for carbon credits," he said, adding that enterprises should know how much they are emitting, how much they are allowed to emit, where they can buy carbon credit which are recognised worldwide.

The development of green financial tools such as green bond, green credit, green fund together with tax and financial incentives would also be important.

General Director of Klinova Climate Consulting Nguyễn Phương Nam said that as carbon credit remained a new issue not only in Việt Nam but also in the world, it would be difficult to develop appropriate regulations from the beginning. The pilot stage would help draw lessons and experiences for more practical adjustments.

The Director of the Institute for Brand and Competitiveness Strategy, Võ Trí Thành, said the focus should be on carbon credit verification to clarify criteria, classification and valuation to ensure transparency. He also urged businesses to be proactive in studying about carbon credit to make necessary preparations.

Source: VNS

See also

Drainage infrastructure development behind pace of urbanisation

Drainage infrastructure development behind pace of urbanisation

Domestic wastewater and rainwater are discharged directly into sewers, canals and ditches and then into main rivers.
Việt Nam rattled by 458 earthquakes in 11 months

Việt Nam rattled by 458 earthquakes in 11 months

HÀ NỘI — Việt Nam has experienced a significant increase in seismic activity this year, with hundreds of small earthquakes reported across the country.
Hà Nội determined to revive its polluted rivers

Hà Nội determined to revive its polluted rivers

HÀ NỘI — After a long delay period, with strong political commitment and leadership from municipal leaders, the Yên Xá wastewater treatment system in Hà Nội has now begun trial operation.
Vietnam seeks stronger cooperation in hydrometeorological forecasting with Japan

Vietnam seeks stronger cooperation in hydrometeorological forecasting with Japan

Hanoi – Deputy Prime Minister Tran Hong Ha, while receiving a delegation of Japanese experts operating in hydrometeorological forecasting in Hanoi on December 2, suggested the Japanese side implement more specific cooperation projects in this field, laying a foundation for the two governments to propose cooperation priorities in the coming time.
Releasing buoys to protect coral reefs in Cát Bà National Park

Releasing buoys to protect coral reefs in Cát Bà National Park

HẢI PHÒNG – Most coral reef conservation areas in Cát Bà Archipelago, located within the Cát Bà National Park in Hải Phòng City, lack an adequate mooring buoy system.
Việt Nam Records recognises Hòn Trứng as most fertile seabird habitat

Việt Nam Records recognises Hòn Trứng as most fertile seabird habitat

BÀ RỊA-VŨNG TÀU — The Việt Nam Record Organisation (VietKings) has officially recognised Hòn Trứng as a special seabird breeding habitat.

See more news

Strengthening cooperation on environment and climate adaptation

Strengthening cooperation on environment and climate adaptation

Can Tho – A working session between leaders of Can Tho and a delegation led by Daniel Stork, Consul General of the Netherlands in Ho Chi Minh City, was held in the Mekong delta city on November 27 to discuss opportunities for expanding bilateral collaboration in agriculture, environmental protection, and climate change adaptation.
Deforestation, forest land encroachment increase in Đắk Lắk Province

Deforestation, forest land encroachment increase in Đắk Lắk Province

Despite various measures implemented by local authorities and forest managers to curb the situation, the issue has not yet 'cooled down'.
Businesses support Vietnam’s net zero target

Businesses support Vietnam’s net zero target

(VEN) - Vietnam has set a goal of achieving net-zero carbon emissions by 2050 to combat global climate change. To support the Government in achieving this target, many businesses have introduced various greenhouse gas reduction solutions.
Prolonged rainfall and landslides disrupt life in central region

Prolonged rainfall and landslides disrupt life in central region

Provincial authorities are monitoring weather developments closely and evacuating residents from flood-prone and high-risk areas.
Tough negotiations to prevent Earth’s warming

Tough negotiations to prevent Earth’s warming

The 29th Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in Baku, Azerbaijan, has failed to find common ground on the major issue of climate finance in the final hours of negotiations. Irreconcilable differences between countries are hampering global efforts to prevent Earth’s warming.
MoT view on raising emission standards for scooters from 2027

MoT view on raising emission standards for scooters from 2027

(VEN) - The Prime Minister Notice No.518/TB – VPCP released recently by the Government Office has demonstrated the political determination and responsibility of enterprises in implementing the Party’s policies and the State’s laws and policies on environmental protection.
Significant progress in fisheries

Significant progress in fisheries' environmental protection but challenges remain

All provinces and cities across the country had issued plans and directives to implement specific activities of the project in line with local conditions.
Hà Nội prepares for temperature drop as cold front approaches

Hà Nội prepares for temperature drop as cold front approaches

According to the NCHMF, the cold front will result in temperatures dropping sharply across the northern region.
Hundreds of damaged irrigation reservoirs need repairing

Hundreds of damaged irrigation reservoirs need repairing

Việt Nam's system of dams and reservoirs is facing numerous challenges. Unusual rainfall patterns, flash floods due to climate change and the degradation of many structures pose significant safety risks.
Greening e-commerce crucial for sustainable development

Greening e-commerce crucial for sustainable development

(VEN) - While e-commerce has emerged as a leading sector of the digital economy, driving economic growth and leading the digital transformation of businesses, it has also resulted in significant waste with adverse environmental impacts.
View more
Latest Most Read
Rubber industry adaptive to EU Deforestation Regulation

Rubber industry adaptive to EU Deforestation Regulation

Hanoi - Vietnam's rubber sector in general, and processing and export enterprises in particular have taken actions to comply with the EU’s Deforestation Regulation (EUDR) in order to avoid any impact on rubber exports to the EU market.
Agricultural sector’s trade surplus approximates 16.5 billion USD

Agricultural sector’s trade surplus approximates 16.5 billion USD

Hanoi – Vietnam recorded a trade surplus of 16.46 billion USD in agricultural, forestry, and aquatic products during the first 11 months of 2024, soaring 52.8% year on year, reported the Ministry of Agriculture and Rural Development.
Transport projects connecting HCM City with Western provinces prioritised

Transport projects connecting HCM City with Western provinces prioritised

CẦN THƠ — Leaders of HCM City and western provinces agreed that from now until the end of 2025, they will prioritise six traffic projects, including the expansion of the HCM City - Trung Lương Expressway and National Highway 1.
Việt Nam boosts fruit imports from the US

Việt Nam boosts fruit imports from the US

The import of fruits and vegetables from several markets, particularly the US, to Việt Nam surged significantly in the first 10 months of 2024.
NA Chairman meets Vietnamese embassy staff in Japan

NA Chairman meets Vietnamese embassy staff in Japan

National Assembly (NA) Chairman Tran Thanh Man and a high-ranking delegation of the Vietnamese legislature met with staff of the Vietnamese Embassy in Japan on December 4 as part of their official visit to the Asian nation.
vietnam japan comprehensive strategic partnership for peace and prosperity in asia and the world

Vietnam-Japan Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World

National Assembly Chairman Tran Thanh Man and his spouse are paying an official visit to Japan from December 3-7. The visit is expected to promote the two countries' legislative ties in a practical and sustainable manner, thus concretising the comprehensive strategic partnership across spheres.
streamlining political systems organisational apparatus

Streamlining political system's organisational apparatus

Party General Secretary To Lam has urged Party committees, Party organisations, agencies, units, and sectors at all levels to demonstrate the highest political determination in streamlining the political system's organisational apparatus.
vietnam singapore strategic partnership

Vietnam-Singapore Strategic Partnership

The official visit to Singapore by National Assembly Chairman Tran Thanh Man and his spouse aims to further deepen the strategic partnership between Vietnam and Singapore.
local vibe at wholesale market

Local vibe at wholesale market

A market can often be described as the beating heart of a city. And Đồng Xuân Market in the centre of Hà Nội is exactly that.
government member for 2021 2026 term

Government member for 2021-2026 term

The 2021-2026 government term was recently consolidated after the 8th session of the 15th National Assembly. It consists of 27 members, including the Prime Minister, five Deputy Prime Ministers, and 21 ministers and heads of ministerial-level agencies.
Vietnam slashes government apparatus, with 9 minitries, agencies cut

Vietnam slashes government apparatus, with 9 minitries, agencies cut

Hanoi – Nine ministries and agencies under the Government will be consolidated under a resolution on streamlining and optimising the political system, Minister of Home Affairs Pham Thi Thanh Tra told the Vietnam News Agency.
Specific plans announced to restructure Party apparatus

Specific plans announced to restructure Party apparatus

The plan will reduce at least four Party organisations, 25 Party delegations and 16 Party groups merged into others and add two more Party Committees under central management.
Streamlining political system: Time does not wait

Streamlining political system: Time does not wait

Achieving strategic goals not only requires extraordinary efforts and exceptional commitment but also does not allow any delay or slackening, with a revolution to build a truly elite and streamlined political system promptly carried out, the Party leader underscored.
Gov

Gov't urges stronger efforts in thrift practice, wastefulness prevention

HÀ NỘI – Prime Minister Phạm Minh Chính on Sunday signed an official dispatch demanding ministries, sectors, and localities to promote thrift practice and wastefulness combat.
Rubber industry adaptive to EU Deforestation Regulation

Rubber industry adaptive to EU Deforestation Regulation

Hanoi - Vietnam's rubber sector in general, and processing and export enterprises in particular have taken actions to comply with the EU’s Deforestation Regulation (EUDR) in order to avoid any impact on rubber exports to the EU market.
Reviving nuclear power programme believed a correct policy

Reviving nuclear power programme believed a correct policy

HÀ NỘI — Many experts in the field of nuclear energy believe that reviving the development of nuclear power is a correct policy.
Viet Nam to restart Ninh Thuan nuclear power project

Viet Nam to restart Ninh Thuan nuclear power project

The National Assembly approved the Government's proposal to restart the Ninh Thuan nuclear power project at its 8th working session on November 30.
Wood industry aims at US$16 billion in export earnings this year

Wood industry aims at US$16 billion in export earnings this year

The wood industry of Vietnam is likely to rake in US$16 billion from exports this year, far exceeding the initial target of US$14.2 billion set by the Ministry of Agriculture and Rural Development.
Chinese media highlights Vietnam as attractive investment destination in 2025

Chinese media highlights Vietnam as attractive investment destination in 2025

The number of Chinese manufacturers shifting production to the Vietnamese market has boomed since 2018, and the upward trend is set to continue over the coming years, the South China Morning Post (SCMP) of Hong Kong (China) confirmed.
Vietnam

Vietnam's readiness to receive semiconductor investment

Vietnam’s goal is not only to participate in the global value chain but also to build an advanced and attractive semiconductor industry ecosystem in the region and the world, which will help the country achieve self-reliance and sustainable development in this field. Currently, Vietnam has met the necessary conditions to be ready to welcome and cooperate with enterprises and investors from all over the world in the semiconductor industry.
Nghệ An approves US$590 million fabric factory investment from Singapore

Nghệ An approves US$590 million fabric factory investment from Singapore

The factory will begin trial operations in the second quarter of 2028 and is expected to provide jobs for 15,000 locals.
Ha Nam grants investment license worth more than 2.6 trillion VND for Thanh Binh II Industrial Park project

Ha Nam grants investment license worth more than 2.6 trillion VND for Thanh Binh II Industrial Park project

The People’s Committee of Ha Nam Province held a conference on the afternoon of November 26 to issue an investment certificate for the Thanh Binh II Industrial Park infrastructure development and business project.
NA Chairman meets Vietnamese embassy staff in Japan

NA Chairman meets Vietnamese embassy staff in Japan

National Assembly (NA) Chairman Tran Thanh Man and a high-ranking delegation of the Vietnamese legislature met with staff of the Vietnamese Embassy in Japan on December 4 as part of their official visit to the Asian nation.
Central bank increases credit growth limit for banks for second time this year

Central bank increases credit growth limit for banks for second time this year

The State Bank of Vietnam (SBV) on November 28 announced it would increase credit growth target for credit institutions, for the second time this year.
PM orders strengthening 2024 credit management

PM orders strengthening 2024 credit management

Prime Minister Pham Minh Chinh on November 27 ordered the Governor of the State Bank of Vietnam (SBV) to outline solutions aimed at improving credit management for 2024 in the face of evolving global economic challenges.
Bac Ninh Province meets business needs for year-end loans

Bac Ninh Province meets business needs for year-end loans

(VEN) - To ensure the sufficiency of loans for manufacturing businesses toward year’s end, many credit institutions in Bac Ninh Province have launched new credit packages with preferential interest rates.
Drainage infrastructure development behind pace of urbanisation

Drainage infrastructure development behind pace of urbanisation

Domestic wastewater and rainwater are discharged directly into sewers, canals and ditches and then into main rivers.
Việt Nam rattled by 458 earthquakes in 11 months

Việt Nam rattled by 458 earthquakes in 11 months

HÀ NỘI — Việt Nam has experienced a significant increase in seismic activity this year, with hundreds of small earthquakes reported across the country.
Hà Nội determined to revive its polluted rivers

Hà Nội determined to revive its polluted rivers

HÀ NỘI — After a long delay period, with strong political commitment and leadership from municipal leaders, the Yên Xá wastewater treatment system in Hà Nội has now begun trial operation.
Vietnam seeks stronger cooperation in hydrometeorological forecasting with Japan

Vietnam seeks stronger cooperation in hydrometeorological forecasting with Japan

Hanoi – Deputy Prime Minister Tran Hong Ha, while receiving a delegation of Japanese experts operating in hydrometeorological forecasting in Hanoi on December 2, suggested the Japanese side implement more specific cooperation projects in this field, laying a foundation for the two governments to propose cooperation priorities in the coming time.
Nineteen initiatives receive Vietnam Smart City Awards 2024

Nineteen initiatives receive Vietnam Smart City Awards 2024

The Vietnam Software and IT Services Association (VINASA) presented the Smart City Awards 2024 to 10 localities and authors of nine smart technological solutions during the Vietnam-Asia Smart City Summit 2024, held in Hanoi on December 3.
Empowering Vietnamese firms with digital transformation

Empowering Vietnamese firms with digital transformation

In response to the growing demand of digital transformation and smart production, the Ministry of Industry and Trade has implemented harmonious measures to support domestic businesses in navigating the fourth industrial revolution.
PM urges rapid technology mastery in renewable energy development

PM urges rapid technology mastery in renewable energy development

Prime Minister Pham Minh Chinh on December 1 asked the Vietnam Oil and Gas Group (Petrovietnam) to accelerate technology transfer for wind turbine and blade production by 2026, ultimately achieving full technology mastery for offshore wind energy development.
VN to embrace a new internet era: VIA

VN to embrace a new internet era: VIA

There are vast opportunities for Vietnamese internet businesses, participants were told at Việt Nam's Internet Day 2024 in Hà Nội.
Transport projects connecting HCM City with Western provinces prioritised

Transport projects connecting HCM City with Western provinces prioritised

CẦN THƠ — Leaders of HCM City and western provinces agreed that from now until the end of 2025, they will prioritise six traffic projects, including the expansion of the HCM City - Trung Lương Expressway and National Highway 1.
Traffic diversion for vehicles on Cau Gie - Ninh Binh Expressway

Traffic diversion for vehicles on Cau Gie - Ninh Binh Expressway

(VEN) - On December 4, the Vietnam Expressway Corporation (VEC) announced a temporary traffic arrangement for the Cau Gie - Ninh Binh Expressway.
Hoan My Scientific and Technical Conference promotes clinical excellence in Vietnam

Hoan My Scientific and Technical Conference promotes clinical excellence in Vietnam

The 8th Annual Hoan My Scientific and Technical Conference, organised by the Hoan My Medical Group’s Hoan My Academy, was held in Can Tho City. Themed "Clinical Excellence: The Heart of Healthcare Transformation", it gathered over 300 domestic and international medical experts to share nearly 100 specialised reports, quality improvement initiatives, and updates on medical advancements to enhance healthcare quality.
Localities report progresses in IUU fishing combat

Localities report progresses in IUU fishing combat

Hanoi – Coastal localities nationwide have implemented practical and effective activities and specific measures, demonstrating their determination to join the nation’s efforts to have the “yellow card” that the European Commission (EC) has imposed on Vietnamese seafood regarding illegal, unreported, and unregulated (IUU) fishing lifted in 2024.
2024 Vietnam Business Day opens shop in Japan

2024 Vietnam Business Day opens shop in Japan

The Vietnam Business Association in Japan (VJBA) on December 3 held the 2024 Vietnam Business Day with the theme “Shared Vision, Shared Success".
Việt Nam

Việt Nam's OCOP products debut at AF-L'ARTIGIANO IN FIERA 2024 in Milan

Under the theme 'Việt Nam’s OCOP Products: Gathering Values, Spreading Culture', Việt Nam’s pavilion spans 200 square metres.
Top 10 reputable logistics companies in 2024 announced

Top 10 reputable logistics companies in 2024 announced

The Vietnam Report JSC on November 29 announced the list of top 10 reputable logistics companies for 2024.
150 products honoured as “Vietnamese Goods Loved by Consumers 2024”

150 products honoured as “Vietnamese Goods Loved by Consumers 2024”

A ceremony honouring the 150 most popular products voted by consumers took place in Hanoi on November 28.
tcty-dau-khi-vn-pv-power-2022
Exhibition on royal culture of Huế opens

Exhibition on royal culture of Huế opens

A special exhibition featuring the history and development of Huế Citadel has opened at the Museum of Hồ Chí Minh City.
Vietnamese artisans bring unique handicrafts to Milan

Vietnamese artisans bring unique handicrafts to Milan

Vietnamese firms are making their mark at the 28th Artigiano International Handicrafts Fair in Milan, the capital of Lombardy - Italy's largest economic and cultural hub, from November 30 - December 8.
Hanoi Digital Pho gives experience of unique culinary essence

Hanoi Digital Pho gives experience of unique culinary essence

(VEN) - Hanoi has just introduced to consumers and tourists its cultural heritage - Hanoi Pho - in a unique way, which is digital Hanoi Pho.
Vietnam rises on global beauty map

Vietnam rises on global beauty map

Vietnam has achieved remarkable progress in global beauty rankings, earning increased recognition for its outstanding representatives winning titles at international beauty pageants.
2025 holiday schedule announced early, expected to boost tourism

2025 holiday schedule announced early, expected to boost tourism

Vietnam’s 2025 holiday schedule was announced early, which is expected to help both people and tour operators actively prepare for holidays across the year.
Developing green and sustainable tourism as a pathway to growth

Developing green and sustainable tourism as a pathway to growth

Cities facing challenges like population density, environmental stress and economic development pressure are recognising the potential of green tourism to address these issues.
Việt Nam, RoK expand tourism cooperation

Việt Nam, RoK expand tourism cooperation

The Asia Tourism Development Institute (ATI) and the Korea Tourism Management Association have organised a conference in Hà Nội to promote tourism, trade, and education cooperation between Việt Nam and the Republic of Korea (RoK).
Dong Thap boosts actions to protect forests in tandem with sustainable tourism

Dong Thap boosts actions to protect forests in tandem with sustainable tourism

Efforts in preserving flora and fauna ecosystems associated with developing eco-tourism in the Gao Giong cajeput forest in Dong Thap province's Cao Lanh district have contributed to attracting more tourists to the Mekong Delta locality.
Mobile Version