At the launching ceremony of the ASEAN Carbon Credit Exchange. (Photo: VNA) HCM City (VNA) – CT Group launched its ASEAN Carbon CreditExchange Joint Stock Company (CCTPA) on September 29, becoming the first Vietnameseenterprise to kick off a voluntary carbon emissions exchange in an attempt to respond to tradepolicies on international environment, and to develop a low-carbon emission economy.
All 27 EU member states are expected to begin piloting their Carbon Border AdjustmentMechanism (CBAM) from October 2023, with the aim of ensuing a level playingfield for European businesses by imposing a carbon bordertax on imports from countries that do not apply equivalent carbon pricingmeasures.
The US will also levy the carbon tariff in 2024, and more major markets in American and Asia are expected to follow suit.
As a major exporter to the EU and the US, Vietnamese enterprises should work toensure that their products meet green standards, as well as improve their competitiveedge in long term.
In this context, development of a carbon market is seen as an effective toolthat helps reduce environmental damage towards sustainable development in line with the world trend.
According to Hoang Bach Duong, Vice Chairwoman of CT Group, building a carbonmarket and green finance market is an inevitable trend to improve businesses’ competitive capacity since meeting all requirements of carbon barriers thatlarge markets are imposing will play a decisive role for the race in the globalsupply chain.
The launch of the CCTPA will encourage enterprises to shift to cleanertechnologies which help reduce carbon emissions so as to achieve Vietnam’snet-zero emissions goal by 2050, she said, adding the company will invest tostudy the application of blockchain for carbon market to ensure thetransparency in carbon credit management, allocation, transfer and calculation.
The CCTPA will be the first company in Vietnam that provides full consultancyfor enterprises, organisations, and individuals in the development of carbon creditprojects, carbon offset and credit mechanisms, and application of carbon tax inthe region and the world.
Experts said establishment of a carbon exchange is a bold step for Vietnam toachieve its net-zero emissions target by 2050.
Director of the Departmentof Climate Change under the Ministry of Natural Resources and Environment TangThe Cuong said carbon market is a key for Vietnam to realise its ambitious goal of net-zero emissions by 2050.
The carbon market will make contributions to reducing green-house gas emissions atlow costs, he added.
At the launching ceremony, a cooperation deal was signed between the CCTPA withthe Association for Safe Water and Environmental Sanitation, the Institute forResearch on Development Communication, scientific research organisations and internationalfinancial agencies with a view to creating breakthrough measures for greentransition.
CT Group, a leading multi-industry economic group in Vietnam, has carried out12 programmes to support the country's response to climate change. It has conducted variousscientific research projects that helps cut millions of tonnes of carbon dioxide.
According to theGovernment’s Decree 06/2022/ND-CP on the roadmap for the domestic carbon marketdevelopment, until 2027, Vietnam will implement a number of activities such asdeveloping regulations for carbon credit management, exchanging greenhouse gasemission quotas and carbon credits, building regulations for operating thecarbon credit exchange, and piloting the carbon credit exchange and offsetmechanism in potential areas and guiding the implementation of the domestic andinternational carbon credit exchange and offset mechanism in accordance with theprovisions of law international treaty to which Vietnam is a member.
൲ At the same time, Vietnam will pilot a carbon credit exchangefrom 2025, and implement capacity building activities and raise publicawareness of carbon market development./.
