The pilot carbon market recently launched in Ho Chi Minh City serves as a tangible demonstration of the city’s dedication to realizing a net-zero economy by 2050 and effectively addressing the pressing challenges posed by climate change.
In a collaborative effort, Tuoi Tre Newspaper, alongside the Department of Climate Change under the Ministry of Natural Resources and Environment, and the Vietnam Packaging Recycling Alliance, organized a workshop titled “Carbon Market – Motivation to Build a Green Vietnam.” This event provided a platform for stakeholders to explore the potential of carbon markets in driving sustainable development and fostering environmental conservation efforts nationwide.
At the conference, Director Nguyen Toan Thang of the Department of Natural Resources and Environment in Ho Chi Minh City said that while implementing Resolution No. 98, Ho Chi Minh City is also carrying out two potential projects to create carbon credits. They are the LED street light replacement project and the project of installing solar power on office roofs.
The pilot carbon market demonstrates Ho Chi Minh City’s commitment to responding to climate change, contributing to enhancing the city’s international position. Thereby, it helps governments, businesses and people save energy and expand the use of renewable energy.
At the same time, it helps the city attract domestic and foreign investors to green projects creating jobs and promoting economic development.
According to Director To Xuan Phuc of the Forest Policy, Trade, and Finance (FPTF) program, with a total area of 14.7 million hectares, Vietnam has the potential for the mobilization of a financial source from forestry carbon projects to preserve and develop forests.
As per calculations, each year Vietnam’s forests can absorb nearly 70 million tons of carbon. The Vietnamese Government is participating in the mandatory carbon market, with a commitment to reduce emissions in the North Central region. In return, the World Bank will provide 10.3 million tons of carbon and pay US$ 51.5 million for the Southeast Asian country.
The Government is also negotiating with the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition. It is expected to mobilize an equivalent financial source from LEAF in the upcoming time through activities to protect forests in the Central Highlands and South Central regions.
With existing forests, Vietnam can also have the potential to mobilize financial resources through voluntary carbon markets. Currently, foreign and domestic investors are dramatically interested in forestry carbon projects. However, the Government currently does not have policies guiding this type of investment.
According to Mr. Phuc, the Government should consider issuing policy mechanisms soon to activate forestry carbon projects to meet both mandatory and voluntary markets.
At the conference, the organizing committee also announced the Green Vietnam project, aiming to raise awareness of the community and businesses about the importance of environmental protection and sustainable development. The project is oriented toward encouraging individuals, organizations and businesses to apply environmentally friendly production and business solutions. At the same time, individuals, organizations and businesses with models and products aimed at sustainable development were praised.
