Research on establishing a national carbon credit registration system according to the Prime Minister's Directive 13 in Vietnam

Research on establishing a national carbon credit registration system according to the Prime Minister's Directive 13 in Vietnam

In Section 2 of the Directive 13/CT-TTg in 2024, to enhance the management of carbon credits and promote the development of the carbon market, the Prime Minister has requested the following requirements:

1. Ministries: Industry and Trade, Transport, Construction, Agriculture and Rural Development, Natural Resources and Environment:

a) Urgently issue a plan to reduce greenhouse gas emissions in specific sectors according to the regulations in Government Decree No. 06/2022/ND-CP (Appendix IV) and implement it to ensure the achievement of committed targets under the NDC (Nationally Determined Contributions), to be completed in the third quarter of 2024.

b) Take the lead and coordinate with relevant agencies to provide advice to the competent authorities on organizing negotiations, signing, and implementing agreements or contracts with international partners for carbon credit transfer and achieving greenhouse gas emission reductions in the managed areas, ensuring the implementation of emission reduction targets under the NDC. Assess the readiness level to participate in the carbon market in certain sectors.

c) Take the lead and coordinate with the Ministry of Information and Communications, press agencies, and media to carry out extensive communication on greenhouse gas emission reduction targets, NDC implementation, carbon credit creation methods, voluntary carbon market participation, and the organization and development of compliant carbon markets.

2. Ministry of Natural Resources and Environment:

a) Urgently study the establishment of a national carbon credit registration system, the management of programs, projects, activities for greenhouse gas emission reduction, and carbon credit creation to serve the pilot implementation and development of the domestic carbon market, and exchange with international partners.

b) Take the lead and coordinate with relevant ministries and agencies to promptly draft amendments and supplements to Government Decree No. 06/2022/ND-CP, including provisions on carbon credit management, domestic and international carbon credit trading, and submit it to the Government before July 30, 2024.

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Therefore, one of the requirements set by the Prime Minister for the Ministry of Natural Resources and Environment is to urgently study the establishment of a national carbon credit registration system.

In addition, it involves managing programs, projects, activities for greenhouse gas emission reduction and carbon credit creation to serve the pilot implementation and development of the domestic carbon market, and exchange with international partners.

Research on establishing a national carbon credit registration system according to the Prime Minister's Directive 13 in Vietnam - image from internet

What is carbon credit according to the law in Vietnam?

Pursuant to Clause 35 Article 3 of the Law on Environmental Protection in 2020 stipulating carbon credit:

Definitions

For the purposes of this Law, the terms below shall be construed as follows:

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35. “carbon credit” means any tradable certificate representing the right to emit one tonne of carbon dioxide (CO₂) or one tonne of carbon dioxide (CO₂) equivalent.

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As regulated above, carbon credit means any tradable certificate representing the right to emit one tonne of carbon dioxide (CO2) or one tonne of carbon dioxide (CO2) equivalent.

When shall the carbon trade exchange (CTX) be operated in Vietnam?

Pursuant to Article 17 of the Decree 06/2022/ND-CP stipulating development roadmap and deployment time of domestic carbon market:

Development roadmap and deployment time of domestic carbon market

1. The period of up to the end of 2027

a) Formulating carbon credit management regulations, GHG emission quota exchange and carbon credits; formulating operation rules of the CTX;

b) Experiment with carbon exchange and offsetting mechanisms in potential sectors and providing guidance on operation of domestic and international carbon exchange and offsetting mechanisms in accordance with law and the international treaties to which the Socialist Republic of Vietnam is a signatory.

c) Establishing and organizing trial operation of the CTX from 2025;

d) Carrying out activities in order to improve capacity and raise awareness about carbon market development.

2. The period from 2028

a) Organizing official operation of the CTX in 2028;

b) Prescribing carbon credit connected and exchange between domestic , regional and global carbon market.

As regulated above, the CTX in Vietnam shall be officially operated in 2008.

Best regards!