The carbon trading platform is expected to be piloted in June

The information was given by Mr. Nguyen Tuan Quang, Deputy Director in charge of the Department of Climate Change (Ministry of Agriculture and Environment), at the National Forum on Environment and Climate – From policy to action, June 5.

According to Decree 29, the operation of the carbon market involves the participation of many parties, including state management agencies, the State Securities Commission, and two stock exchanges. In addition, banks and securities companies participate in supporting transactions on the floor.

Regulations related to the pilot of this exchange such as carbon trading monitoring regulations, greenhouse gas emission quota registration system, carbon credits… have been issued.

According to Mr. Quang, there are still some technical contents that need to be completed, including regulations for operating carbon market transactions and licensing securities companies to participate in the market.

Regarding technical infrastructure, Mr. Quang said, the Ministry of Agriculture and Environment has basically completed the database system to register emissions quotas and carbon credits. The system has been approved for information security and is ready to operate.

“If the remaining procedures are completed on schedule, the pilot operation of the domestic carbon trading floor can be implemented in June,” Mr. Quang said.

According to the carbon market development roadmap approved by the Government, Vietnam will pilot a carbon trading floor before officially operating in the next phase. The carbon market allows businesses to trade emission quotas and carbon credits, thereby creating economic incentives for reducing greenhouse gas emissions.

Associate Professor. Dr. Nguyen Dinh Tho, Deputy Director of the Institute of Agricultural and Environmental Policy and Strategy, said that businesses need to soon build a transparent emission measurement, reporting and inventory system. They also need to proactively develop long-term emissions reduction strategies, instead of waiting until regulations are fully applied.

According to him, investing in technology, energy conversion and participating in the carbon credit mechanism will help businesses reduce compliance costs in the future. On the contrary, units that are slow to prepare may face great financial pressure when the need to buy carbon credits increases or emissions regulations become increasingly strict.

Businesses have begun to prepare for the carbon market operation phase. Mr. Nguyen Phu Duong, Deputy General Director of Vietnam Steel Corporation (VNSTEEL), said that the enterprise has implemented a greenhouse gas inventory at member units, reviewing major emission sources. VNSTEEL also applies solutions to improve energy efficiency to reduce emissions in steel production.

According to Mr. Duong, in addition to managing and optimizing allocated emission quotas, the business also researches and develops afforestation projects on existing land funds to create a source of carbon credits to serve the need to offset emissions in the future.

Putting the carbon trading floor into operation is expected to contribute to implementing Vietnam’s commitment to net zero emissions by 2050. This also helps businesses adapt to the carbon pricing trend that many countries are applying to imported goods.