Research, development, and establishment of a carbon credit trading exchange in Vietnam

Research, development, and establishment of a carbon credit trading exchange in Vietnam​​ (Image from Internet)

On December 19, 2024, the Government of Vietnam issued Resolution 241/NQ-CP regarding the Implementation Plan of Resolution 937/NQ-UBTVQH15, overseeing the implementation of policies and laws on energy development for the period 2016-2021.

Research, development, and establishment of a carbon credit trading exchange in Vietnam

For medium and long-term tasks and solutions through 2030, with a vision to 2050 in the Implementation Plan of Resolution 937/NQ-UBTVQH15, the Government of Vietnam has required the Ministry of Finance to take the lead, coordinating with other ministries, central authorities, and local authorities to complete policies and laws on energy development, ensuring national energy security, national defense, security, and economic, social, and environmental efficiency. A key focus is the review and submission to the National Assembly for amendments to the Public Debt Management Law.

Simultaneously, the study, development, and establishment of a carbon credit exchange and the issuance of financial management mechanisms for the carbon market's activities are prioritized.

Additionally, the Government of Vietnam has instructed several relevant Ministries to execute key tasks during this period as follows:

- The Ministry of Planning and Investment of Vietnam leads, in cooperation with other ministries, central authorities, and local authorities:

+ Develop policies prioritizing investment in sustainable energy infrastructure, regional connectivity; accelerate the socialization of investment in infrastructure and services in the energy sector. Eliminate monopolies and unreasonable barriers in the use of energy infrastructure facilities and services, while enforcing shared energy infrastructure usage in projects implemented through public-private partnership models.

+ Proactively and actively engage in international cooperation in the energy sector to maximize opportunities, overcome challenges, mobilize, and efficiently use external investment resources, assimilate international experiences, promote technology transfer and knowledge in the energy field. Formulate strategic partnerships to meet the long-term energy import objectives and invest in energy resources abroad.

- The Ministry of Natural Resources and Environment of Vietnam leads, in coordination with other ministries, central authorities, and local authorities:

+ Complete policies and laws on energy development, meeting the demands of ensuring national energy security, national defense, security, and economic, social, and environmental efficiency. Focus on reviewing and submitting to the National Assembly amendments to the Maritime Resources and Island Environment Law; study and develop law projects on climate change.

+ Intensify the investigation, prospecting, and exploration efforts to assess coal reserves and output in potential areas; enhance the quality of resource evaluation work.

+ Promptly research, investigate, and comprehensively assess the potential and development of some new energy sources such as geothermal, wave energy, and tidal energy. Implement international commitments in researching and applying nuclear energy for peaceful purposes.

+ Execute environmental protection policies in the energy sector aligned with the goal of reducing greenhouse gas emissions per international commitments. Deploy the operation of the carbon market and implement appropriate carbon credit policies and carbon taxes on fossil fuel usage. Develop mechanisms and policies to support and promote carbon capture, storage, and management in energy projects.

- The Ministry of Construction of Vietnam leads, in conjunction with other ministries, central authorities, and local authorities, to complete policies and laws on energy development, fulfilling the demands of ensuring national energy security, national defense, security, and economic, social, and environmental efficiency. Focus on reviewing and submitting to the National Assembly amendments to the Construction Law.

- The Ministry of Home Affairs of Vietnam leads, in collaboration with other ministries, central authorities, and local authorities, to continue to review and perfect the state management organization in the energy sector.

- The Ministry of Information and Communications of Vietnam leads, in coordination with other ministries, central authorities, and local authorities: Further strengthen guidance and instruction for mass media agencies to propagate the government's policies, laws on energy development to agencies, organizations, and people nationwide; commend advanced models; promptly identify and report negative actions, corruption, and wastefulness in the energy sector.

- The Ministry of Agriculture and Rural Development of Vietnam leads, in cooperation with other ministries, central authorities, and local authorities:

+ Complete policies and laws on energy development, meeting the demands of ensuring national energy security, national defense, security, and economic, social, and environmental efficiency. Focus on reviewing and submitting to the National Assembly amendments to the Forestry Law.

+ Implement the operation of the carbon market and execute forest-based carbon credit policies.

- The Ministry of Labor, War Invalids and Social Affairsof Vietnam leads, in conjunction with other ministries, central authorities, and local authorities, to develop comprehensive human resource development policies and training programs for key segments of the energy industry.

Details can be found in Resolution 241/NQ-CP dated December 19, 2024.

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