VIETNAM TO STRENGTHEN CARBON CREDIT MANAGEMENT

Prime Minister Pham Minh Chinh has urged ministries to work with relevant agencies to reach deals with international partners to develop a carbon credit market, reduce greenhouse gas (GHG) emissions, allocate emission quotas, and create green financial resources for Vietnam.

The prime minister signed Directive 13/CT-TTg on May 2, allowing for the strengthening of carbon credit management to implement the Nationally Determined Contributions.

PM Chinh requested the involvement of the ministries of Industry and Trade, Transport, Construction, Agriculture and Rural Development, and Natural Resources and Environment to issue plans by the third quarter this year to mitigate GHG emissions in line with Decree No.06/2022/ND-CP on emission reduction, ozone-layer protection, and the development of a carbon market.

Specifically, the Ministry of Natural Resources and Environment (MoNRE) was assigned to establish a national registration system for carbon credits, management of programmes, projects, activities to reduce GHG emissions, and create carbon credits for the implementation of a pilot scheme.

The MoNRE was tasked with drafting a new decree to amend and supplement several articles of Decree 06, which currently does not regulate the issuance of approval letters for international carbon credit transfers. The new decree must be submitted to the government by the end of July.

The Ministry of Agriculture and Rural Development (MARD) has been requested to work with relevant agencies and forest localities to build a database on the current status and evaluate the potential of reducing emissions and absorbing carbon from forests at national, regional, and local levels towards 2030.

By the end of October 31,the MARD, along with relevant agencies and forest localities, must completely define the potential for carbon credit sales and propose pilot policies and mechanisms for results-based carbon credit payments for high-quality, low-emission rice farming.

The Ministry of Finance has also been asked to collaborate with the MoNRE to finalise the development of a domestic carbon market in Vietnam.

Source: VIR