Experts highlight challenges, opportunities in Việt Nam's carbon credit market

The seminar, themed “Carbon Credits and Human Resources for the Carbon Credit Market,” was co-organised by the Institute of Public Policy and Rural Development (Ministry of Agriculture and Rural Development), the Vietnam Agriculture Newspaper and VOS HOLDINGS Ecosystem Co. Ltd. on August 16. – Photo by nongnghiep.vn

HCM CITY – In 2023, Việt Nam earned over US$50 million by transferring more than 10 million carbon credits, prompting efforts to develop the legal framework and address the need for both the quality and quantity of human resources in this growing market, experts discussed at a conference in HCM City.

The seminar, themed “Carbon Credits and Human Resources for the Carbon Credit Market,” was co-organised by the Institute of Public Policy and Rural Development (Ministry of Agriculture and Rural Development), the Việt Nam Agriculture Newspaper and VOS HOLDINGS Ecosystem Co. Ltd. on August 16.

Nguyễn Trung Đông, Rector of the Institute of Public Policy and Rural Development, said that Việt Nam has issued legal frameworks on greenhouse gas reduction and ozone layer protection.

Additionally, there are policies in place to facilitate carbon credit trading, aimed at encouraging and promoting the participation of businesses and communities in reducing greenhouse gas emissions.

Currently, the Ministry of Agriculture and Rural Development is also implementing projects related to forest carbon credit trading under the ERPA Agreement and a sustainable high-quality rice development project, with the goal of reducing the country's carbon emissions.

Võ Xuân Vinh, Director of the Business Research Institute, highlighted the Vietnamese government's strong commitment to reducing greenhouse gas emissions.

Since 2021, Việt Nam has shown its determination to address climate change at COP26 and fulfill regional energy obligations.

The country is also involved in organisations such as the Greater Mekong Subregion Cooperation and the APEC Forum, as well as the Asia Climate Action Alliance, he added.

Trần Đại Nghĩa, Head of the Economics of Resources and Environment Research Department at the Institute of Policy and Strategy for Agricultural and Rural Development, said that currently, Việt Nam can only sell voluntary carbon credits by creating a carbon surplus beyond its Nationally Determined Contributions (NDC) commitments.

He also highlighted the importance of carbon pricing, noting that while there are three international assessment systems, the country can only use two, including cap-and-trade and the carbon credit mechanism.

Additionally, Việt Nam participates mainly in the voluntary carbon credit market and cannot join the mandatory international market due to a lack of agreements, despite selling over 10 million carbon credits in 2023, he added.

Moreover, Đặng Thanh Long, Director of Training and Sustainable Development at Intertek Việt Nam, emphasised that the EU's CBAM taxes imports based on their carbon intensity to prevent carbon leakage, making it crucial for the country to implement its carbon market soon to avoid higher export costs and mitigate the impact on local businesses.

Lê Hoàng Thế, Director of The VOS Ecosystem Company Ltd, said Việt Nam plans to pilot a carbon credit exchange in 2025, making it essential to train a professional brokerage force for carbon trading.

He said Việt Nam first needs 150,000 professionals with expertise in carbon credit mechanisms and international certification to effectively operate the carbon credit market.

Experts at the seminar said that there are currently lacking carbon credit specialists in Việt Nam as the country is new to the carbon credit market and relies heavily on international resources and technology.

They also highlight the need to focus on training human resources to develop the carbon credit market in the future. – VNS