Vietnam plans national carbon market from 2020
- 26 November 2012
Vietnamese Prime Minister Nguyen Tan Dung has approved a plan to manage Vietnam's greenhouse gas emissions and establish a global carbon trading scheme after 2020.
The carbon reduction plan is included in the country's commitment to implement the United Nations Framework Convention on Climate Change and other international conventions on environmental protection adopted by Vietnam.
Vietnam will compile a periodical report about greenhouse gas emissions every two years which will be based on results from the soon-to-be-established National Greenhouse Gas Emissions Inventory System.
The plan is also part of work on developing a low carbon economy for green and sustainable development.
The scheme, which will be in line with regulations under the Kyoto Protocol, will control emission of six types of greenhouse gasses, including carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O), Hydrofluorocarbons (HFCs), Perfuorocarbons (PFCs) and Sulfur hexafluoride (SF6).
Vietnam is scheduled to reduce greenhouse gas emissions by 8-10% during 2011-20 compared to 2010, under the National Strategy on Green Growth which was approved by the Prime Minister in September.
Under the scheme the country will look to reduce methane emissions by 5% by applying methods to capture methane from landfill sites and through industrial waste water processing.
Growing new forests and revitalizing natural forests are also measures to be applied to promote capacity to absorb carbon emissions.
A finance mechanism and legal documents on managing greenhouse gas emissions will also be completed in accordance with the Intergovernmental Panel on Climate Change.
Vietnam already benefits from carbon trading by receiving Clean Development Mechanism (CDM) projects with the country having 164 CDM initiatives, making it the fourth highest nation in the world for registered projects.
Vietnam would become only the third country in Asia to announce plans to develop a carbon market. It follows South Korea, which plans to launch its market in May, 2013 and China, which is now in the process of introducing seven different pilot schemes in separate cities and provinces around the country.
Article originally published on CleanBiz Asia