Improving capacity for stakeholders in carbon market

Within the framework of the Memorandum of Understanding between the Department of Climate Change under the Ministry of Natural Resources and Environment (MoNRE) and the United Nations Office for Project Services (UNOPS) and the Southeast Asia Energy Transition Partnership (ETP) program, a training course on emission trading system in Vietnam was held on February 26 in Hanoi.

Participants at the training course on ETS and carbon markets - photo Thu Huong

Dang Hong Hanh, co-founder of Energy and Environment Consultancy JSC (VNEEC), said in late February and early March 2024 that the ETP organized two training courses on the ETS and carbon markets for State management agencies and more than 100 enterprises from Thua Thien Hue northwards.

The courses were a part of an ETS piloting and simulation scheme to promote the development of the carbon market in Vietnam. Some industries such as cement, steel production and thermal power are expected to participate in the ETS.

This is the first capacity-training in Vietnam that attracts participants from both public and private sectors with a comprehensive and systematic training curriculum on ETS and carbon markets using a market simulation tool – CarbonSim.

“Accordingly, the lectures are presented by leading international experts in the field of climate change mitigation and carbon pricing. This training initiative comes at an important period when Vietnam is committed to reducing greenhouse gas emissions under the Paris Agreement on climate change.” - Dang Hong Hanh emphasized.

Choosing the optimal solution

With an emissions reduction target of 43.5 percent by 2030, building an effective ETS plays a key role in achieving the Nationally Determined Contribution (NDC) target.

Experts share experience in promoting the carbon market at the training course

By setting a limit on total emissions and allowing businesses to trade emissions quotas, ETS creates economic incentives to help businesses effectively reduce their GHG emissions. Additionally, revenue from auctions of emissions quotas can be reinvested in climate-related projects.

“The main objective of the technical assistance is to develop and organize training courses on ETS for various stakeholders including policy makers, research institutes, universities, financial institutions, media representatives, and especially big emitters that will be covered under Vietnam’s ETS in the future,” Hanh added.

The two training courses took place from February 26 to March 1, 2024 with the participation of representatives of ministries and sectors, development organizations, financial institutions, representatives of big emitters, business associations and media agencies regarding the establishment and operation of the ETS and carbon markets in Vietnam.

The contents of the training courses include carbon pricing implementation in the world, preparations for the operation of the carbon trade exchange, the ETS working principles and key design elements like measurement, reporting, verification (MRV) requirements in the system.

After Hanoi, subsequent training courses will be held in Ho Chi Minh City and Binh Duong City for stakeholders and businesses in the south.

After the training course, participants will receive a certificate of attendance issued by the Department of Climate Change and the Southeast Asia Energy Transition Partnership Program.