Recently, the Vietnam Chamber of Commerce and Industry (VCCI) collaborated with the International Emissions Trading Association (IETA) and IETA’s Business Partnership for Market Implementation (B-PMI) to jointly host the training seminar titled “Enhancing Capacity on the Emissions Trading System (ETS) and Linking with the International Carbon Market.”

Participants at the Training Seminar on “Enhancing Capacity for the Emissions Trading System (ETS) and Linking with the International Carbon Market” Held in Hanoi

This event helps businesses explore opportunities related to the new emissions trading program and supports the enhancement of effective implementation within the framework of Vietnam's carbon market.

Mr. Hoang Quang Phong, Vice Chairman of VCCI, stated that the collaboration with IETA's B-PMI has helped VCCI and many stakeholders in the local industry gain a better understanding of the role of the carbon market in Vietnam. The country has significant potential for low-carbon development, but capacity building must continue.

"VCCI plays a crucial role as a bridge between Vietnamese businesses and international partner organizations, facilitating access to the global carbon market, exploring opportunities for emissions trading, and participating in international carbon exchange mechanisms. These efforts not only support businesses in meeting international commitments but also create new opportunities for trade and investment. VCCI is proud to assist its members in this endeavor."

Mr. Hoang Quang Phong, Vice Chairman of VCCI  at the Seminar

In 2022, IETA launched the B-PMI model to support the World Bank’s Partnership for Market Implementation (PMI). This initiative enhances carbon market design, promotes knowledge sharing about market trends and policies, and raises climate ambition through business-led dialogues between companies and governments.

According to Mr. Jeff Swartz, Co-Chair of B-PMI and Vice President of Low Carbon Strategy, Legal Affairs & Partnerships at BP: “B-PMI is a great way for IETA member companies to share their experiences and expertise about the carbon market with companies in Vietnam that are preparing to engage in the carbon market here. Vietnam is at a promising juncture to introduce a carbon market in the coming years, and IETA is the ideal partner to support businesses’ readiness.”

Mr. Jeff Swartz, Co-Chair of B-PMI and Vice President of Low Carbon Strategy, Legal Affairs & Partnerships at BP.

The two-day training seminar included participation from the Department of Climate Change, the Ministry of Natural Resources and Environment, the Legal Department of the Ministry of Finance, representatives from the Ministry of Industry and Trade, the Ministry of Transport, leading domestic and international experts, international organizations (IFC, GIZ, SNV, World Bank), representatives from financial institutions, commercial banks, business associations, industrial parks, and over 100 representatives from various local industries.

Training Seminar on “Enhancing Capacity for the Emissions Trading System (ETS) and Linking with the International Carbon Market” Held in Hanoi on September 12-13, 2024

At the event, representatives from the Department of Climate Change, Ministry of Natural Resources and Environment, stated that the government is working to improve regulations to enhance greenhouse gas inventory for the allocation of greenhouse gas emission quotas in preparation for the carbon market by amending Decree 06/2022/ND-CP. The entities eligible for the allocation of greenhouse gas emission quotas are those with high emissions, as per Decision 13/2024/QD-TTg from the Prime Minister.

In the near future (by 2025), a pilot program will be conducted for companies in the thermal power, steel, and cement sectors (approximately 200 companies). The amendment to Decree 06 will clarify the participants in carbon credit trading, including facilities allocated greenhouse gas emission quotas, organizations with programs or projects under the trading and offsetting mechanism for carbon credits, and organizations engaged in carbon credit trading. Thus, the amended Decree 06 provides more detailed regulations regarding participants in the carbon market to facilitate carbon credit trading in line with national plans and international commitments.

A representative from the Ministry of Finance mentioned that, according to the outlined roadmap, Vietnam will build, pilot, and operate a greenhouse gas emissions quota and carbon credit trading platform during the 2025-2027 period, alongside efforts to complete the legal framework. The carbon credit exchange is expected to officially operate from 2028.

Vietnam is moving towards linking with international carbon markets under Article 6 of the Paris Agreement, as well as with voluntary carbon markets. Throughout the event, leading project developers, countries purchasing carbon credits, and international experts presented the requirements for participation in Article 6 and the success factors in developing high-quality carbon projects.

Mr. Dirk Forrister, CEO of IETA, stated: “International carbon markets under Article 6 can help channel essential financial flows from developed countries to developing nations, promoting sustainable development and green growth. As an international industry association, IETA plays a crucial role in facilitating these collaborative approaches, helping to bridge the gap between policy and practice.”

International companies, including ACT Commodities, ALLCOT, BP, Ecosecurities, Rabobank Acorn, S&P Global, Shell, South Pole, and STX Commodities, emphasized the importance of regulatory stability to generate the necessary trust and stability for large-scale investments in low-carbon technologies to become a reality. Business representatives highlighted the ongoing need for capacity building and collaboration in Vietnam, as concepts related to greenhouse gas inventory, emissions trading, and carbon markets remain new for many companies here.

Session with Representatives from ACT Commodities, BP, and KliK Foundation on the Perspective of Carbon Credit Buyers Under Article 6 of the Paris Agreement (From left to right: Ms. Nadiya Nair, Strategy & Development - Carbon and Renewable Energy Markets, ACT Commodities; Ms. Jean Chung, Senior Director, Carbon North Asia, Trading & Shipping, BP; and Ms. Vicky Janssens, Managing Director, Southeast Asia, KliK Foundation.)

Mr. Pham Van Tien, Manager of Xuan Thanh Cement Joint Stock Company, stated, " Xuan Thanh Cement Joint Stock Company is one of the 200 major emitting enterprises, and we are very interested in participating in greenhouse gas emissions trading and the carbon credit market. The training course has been very effective for us, as we were updated on current regulations and gained information about the development direction of the carbon market in Vietnam."

Delegates Sharing Insights at the Seminar

"I also greatly appreciate the lessons shared from compliance markets and the discussions with international trade organizations, as this helps me better understand how companies can prepare and develop with the ETS. I hope that, as the legal framework regulating the carbon credit market is finalized, IETA and VCCI can provide more in-depth training programs to help us engage more effectively in this field," Mr. Tien emphasized.