The kick-off meeting project “Assessment of Country’s Readiness and International Experience for Carbon Trade Exchange Design”

12.10.2023 | Category: News

Details

On August 10, 2023, the kick-off meeting of the technical assistance project "Assessment of National Readiness and International Experience in the Design of Carbon Trading Platform" was organized within the framework of the Southeast Asia Energy Transition Partnership (ETP). This project is funded by ETP to support the Ministry of Finance, carried out in the given context that Viet Nam made a strong commitment to achieving net-zero emissions by 2050 at the 26th United Nations Framework Convention on Climate Change (COP26).

To realize this ambition, Decree No. 06/2022/ND-CP, issued on January 7, 2022, by the Government on mitigation of greenhouse gas (GHG) emissions and protection of ozone layer details the establishment and operation of the domestic carbon market. Accordingly, Viet Nam will establish and operate a pilot CTX in 2025 and fully operate in 2028. The Ministry of Finance (MOF) is responsible for coordinating the establishment and operation of CTX and formulating a financial management mechanism for the operation of the carbon market.

The technical assistance project “Assessment of Country’s Readiness and International Experience for Carbon Trade Exchange Design” aims to provide MOF with a comprehensive understanding of the country’s existing relevant legal, institutional framework and infrastructure conditions and the gasp to be fulfilled for the establishment and operation of the CTX in Viet Nam. The recommendations on the appropriate legal, institutional, and technical solutions and the implementation roadmap for Viet Nam will be derived from review of lessons learned from developed CTX models in other countries, particularly countries having similar starting points and conditions as Viet Nam.

The Environment and Ecology Institute (EEI) leads the consortium, collaborating with Green Climate Innovation Company Limited (GreenCIC) and Ecoeye Co., Ltd., along with support from experienced international experts in the field, has been selected to implement this project. The project is expected to be implemented in 5 months, from August 2023 to December 2023, encompassing the following main tasks:

Review of international experiences and assessment of the legal, institutional, and infrastructural requirements for establishment and operation of the CTX;
Review of the national context and assessment of existing relevant regulations, institutions and infrastructure for establishment and operation of the CTX;
Analysis of legal, institutional and infrastructure gaps for establishment and operation of CTX in Vietnam and recommended solutions based on international experience and the country’s context;
Stakeholder engagement and consultation with relevant government authorities, financial institutions and organizations, international development agencies, as well as other relevant organizations and entities.
Plan for a carbon market class for government officials.

The kick-off meeting project has the participation of representatives from ETP and the Consortium. During the meeting, participants discussed and reached a consensus about the overall objectives, working approach, and crucial next steps. This marked the initial phase in building a robust collaborative foundation, ensuring the future success of the project.