This is the information given by Mr. Nguyen Toan Thang - Director of the Department of Natural Resources and Environment of Ho Chi Minh City at the workshop "Carbon credit market - Driving force for building a Green Vietnam" organized by Tuoi Tre Newspaper in coordination with the Ministry of Natural Resources and Environment and related parties on the morning of April 20.

Great opportunity for Ho Chi Minh City

Mr. Nguyen Toan Thang said that in Resolution No. 98/2023/QH15 on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City, the city is the first locality in the country to pilot the carbon credit exchange and offset mechanism.

Accordingly, potential credit-generating projects such as: Upgrading to LED street lights; installing rooftop solar power systems for public and private properties in the area; retrofitting energy-saving equipment for buildings identified as public and private properties... have been proposed.

Mr. Nguyen Toan Thang - Director of Department of Natural Resources and Environment of Ho Chi Minh City

Mr. Thang commented that the proposal to select pilot projects on financial mechanisms to implement measures to reduce greenhouse gas emissions through carbon credit exchange and offset mechanisms and to implement carbon credit trading activities in the city brings many opportunities.

In particular, carbon credit trading will attract domestic and foreign investors to green projects in Ho Chi Minh City, creating jobs and promoting economic development. In addition, Ho Chi Minh City has great potential to develop the carbon credit market because there are many businesses that emit greenhouse gases and have the need to reduce emissions.

Delegates attending the workshop

“The pilot carbon credit market demonstrates Ho Chi Minh City’s commitment to responding to climate change; at the same time, reducing the impact of climate change on the lives of people in particular and the community in general. Thereby, contributing to the implementation of the Prime Minister’s commitment at the 26th World Summit (COP 26) that Vietnam will reduce greenhouse gas emissions to zero net emissions by 2050; as well as contributing to enhancing the city’s international position, bringing opportunities for the city to become a regional and international carbon credit trading center,” said Mr. Thang.

According to Mr. Thang, in the 2024 plan, the Department will coordinate with the Department of Finance to complete the Pilot Project on Financial Mechanism to implement measures to reduce greenhouse gas emissions according to carbon credit exchange and offset mechanisms, and submit it to the City People's Committee for approval. Coordinate with the Ministries of Industry and Trade, Transport, Agriculture and Rural Development, and Natural Resources and Environment to determine the contribution rate of greenhouse gas emission reduction and absorption in the city to the national greenhouse gas emission reduction target before trading carbon credits.

Many challenges remain

Besides the opportunities, Mr. Thang also said that there are still many challenges that need to be solved in the piloting of the carbon credit exchange and offset mechanism. Specifically, the legal framework for calculating, evaluating and appraising carbon credits is not complete and there is no environment for widespread trading of carbon credits. In particular, most of the content in the process of creating, calculating prices and selling carbon credits depends on foreign organizations.

Therefore, Mr. Thang proposed that guidance from the Ministry of Natural Resources and Environment, the Ministry of Finance and other specialized ministries is needed to address the above challenges. In addition, it is necessary to strengthen training and coaching for businesses, organizations and civil servants on the carbon credit market; strengthen cooperation with experienced countries and international organizations to effectively implement the carbon credit market...