Directive of the Prime Minister on Strengthening Carbon Credit Management in Vietnam

Directive of the Prime Minister on Strengthening Carbon Credit Management in Vietnam (Internet image)

On May 2, 2024, the Prime Minister of Vietnam issued Directive 13/CT-TTg on enhancing the management of carbon credits to fulfill the Nationally Determined Contributions (NDC).

Directive of the Prime Minister on Strengthening Carbon Credit Management in Vietnam

Specifically, to strengthen the management of carbon credits and promote the development of the carbon market, ensuring the implementation of the NDC and balancing the interests of the state, businesses, the people, and participating partners, the Prime Minister requests:

(1) Ministries: Ministry of Industry and Trade, Ministry of Transport, Ministry of Construction, Ministry of Agriculture and Rural Development, Ministry of Natural Resources and Environment to:

- Urgently issue a plan to reduce greenhouse gas emissions in accordance with the provisions of Government's Decree 06/2022/ND-CP (Appendix IV) and organize its implementation to ensure the achievement of the committed targets under the NDC, to be completed in the third quarter of 2024.

- Take the lead and coordinate with relevant agencies to advise the competent authorities on organizing negotiations, signing, and implementing agreements or contracts with international partners on carbon credit transfers, the results of greenhouse gas emissions reduction within the scope of management, ensuring the achievement of emission reduction targets under the NDC; and evaluating the readiness level to participate in the carbon market in certain sectors.

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

(2) The Ministry of Natural Resources and Environment to:

- Conduct urgent research to establish a national registry system for carbon credits, manage programs, projects, and activities for reducing greenhouse gas emissions and generating carbon credits for pilot implementation and the development of the domestic carbon market, and exchange carbon credits with international partners.

- Take the lead and coordinate with ministries, relevant agencies to urgently develop a Decree amending and supplementing certain provisions of Government's Decree 06/2022/ND-CP, which includes regulations on carbon credit management and domestic and international carbon credit trading activities, and submit it to the Government before July 30, 2024.

(3) The Ministry of Agriculture and Rural Development to:

- Take the lead and coordinate with the Ministry of Natural Resources and Environment, relevant agencies, and localities with forests to expedite the establishment of a database on the current status and potential for reducing emissions and carbon sequestration from nationally designated forests, regions, and localities until 2030, taking into account the year 2050.

- Take the lead and coordinate with the Ministry of Natural Resources and Environment, relevant agencies, and localities with forests to determine the potential for emissions reduction and carbon sequestration from forests to contribute to the implementation of NDC targets as a basis for forest carbon credit trading activities with international partners; complete before October 31, 2024; develop national standards for forest carbon credits and detailed regulations on measurement, reporting, and verification of forest carbon sequestration; develop pilot policies and payment mechanisms for forest carbon credits based on results for areas specializing in high-quality rice cultivation and low emissions.

(4) The Ministry of Industry and Trade to lead and coordinate with relevant agencies to review the legal framework, domestic situation, and international experience in managing, buying, selling, and exchanging renewable energy certificates (RECs) associated with the implementation of national emission reduction targets, propose management regulations (if any), and report to the Prime Minister before September 30, 2024.

(5) The Ministry of Finance to lead and closely coordinate with the Ministry of Natural Resources and Environment, ministries, and relevant agencies to finalize the Plan for developing the carbon market in Vietnam, submit it to the competent authority for approval, ensure the organization and operation of pilot projects and the officially stated objectives; study and evaluate the experiences of countries in the region and internationally in the process of building, managing, operating, and developing carbon markets.

(6) The Ministry of Information and Communications, in coordination with relevant ministries, to direct central and local press agencies, radio stations, and television stations to develop and implement communication programs on the implementation of national greenhouse gas emissions reduction targets, voluntary contributions determined by the nation (NDC), carbon credit creation methods, voluntary participation in the carbon market, and the organization and development of compliant carbon markets.

(7) The People's Committees of provinces and centrally-run cities to:

- Coordinate with relevant ministries and sectors to implement the national greenhouse gas emission reduction targets according to the NDC; review and assess the current status of activities and measures to reduce greenhouse gas emissions in the area to evaluate the potential for generating carbon credits and carbon credit exchanges.

- Coordinate with the Ministry of Natural Resources and Environment, as well as relevant ministries and central authorities, to review and request organizations and enterprises implement programs and projects under the mechanism of carbon credit exchange and offset in the area. They should fulfill their responsibility of providing information on programs, projects, the amount of generated carbon credits, and exchanges, which will be submitted to the Ministry of Natural Resources and Environment for consolidation as regulated.

- Coordinate with the Ministry of Information and Communications and relevant agencies to implement communication programs on the responsibility of implementing national greenhouse gas emission reduction targets according to the NDC, methods of generating carbon credits, voluntary participation in the carbon market, and the organization and development of compliant carbon markets.

More details can be found in Directive 13/CT-TTg, dated May 2, 2024.

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