Carbon market necessary to attain GHG reduction targets

At a recent regional workshop on mechanism for a carbon market, Tue said for developing countries like Vietnam, participating in the carbon market is a chance to access modern technologies, create financial revenues, and join hands with the global community in reducing GHG emissions and coping with climate change.

Building and developing a carbon market is also part of international efforts to realise the Paris Agreement on climate change so as to curb the increase of GHG concentration in the atmosphere at low expenses, he noted.

To help carry out the UN Framework Convention on Climate Change, the Kyoto Protocol suggested flexible mechanisms for developed and developing countries to cooperate to reduce GHG emissions. 

In the protocol’s initial commitment period from 2008 to 2012, the carbon market was vibrant with the Joint Crediting Mechanism (JCM). Some carbon credit mechanisms that are not within the framework of the Kyoto Protocol, also called voluntary carbon credits, also developed rather strongly.

However, the number of newly registered JCM projects has fallen down considerably since 2013, which was attributable to the Doha Amendment to the Kyoto Protocol not taking effect yet. As a result, some developed countries which purchased carbon credits under the JCM have not been forced to cut down GHG emissions. 

Though some new mechanisms have been built and implemented like the JCM between Japan and several partners, they were just run on a trial basis and the existing carbon credits are yet to able to be transacted in the carbon market.

At the 2015 Paris Climate Conference or COP 21, participating countries approved regulations on a new mechanism to help cut down GHG emissions and support sustainable development.

Director Tue said Vietnam will take part in the carbon market through the Clean Development Mechanism.

In the country’s strategy for participating in the carbon market after 2020, Vietnam will build voluntary GHG emission reduction projects and a nationally appropriate mitigation action plan. 

To do that, it will assess its emission reduction potential and complete the policy framework for business activities relating to carbon projects.

Vietnam is also about to issue policies encouraging investment, instructing the management of carbon credit trading, and improving the measurement, reporting and verification capacity, thereby helping the country get ready to integrate more strongly into the global carbon market, the official added.