Early completion of legal framework for carbon market development
Vietnam is aiming to develop a carbon market to fulfill its commitment to achieving net zero emissions by 2050, in the context of increasingly severe global climate change.
Prof. Dr. Do Van Dai - Vice Principal of Ho Chi Minh City University of Law spoke at the conference
Experts emphasize that building a complete legal framework is a key factor to promote the sustainable development of this market. Vietnam has begun to demonstrate its determination through policies, such as the 2020 Law on Environmental Protection and Decree No. 06/2022, which is expected to start operating a pilot carbon market from 2025.
According to international experts, for the carbon market to operate effectively, Vietnam needs to flexibly combine the ETS mechanism and carbon tax, based on the experience of the EU and China. In particular, focusing on building the ETS mechanism with key elements, such as subsidy limits, allocation methods and price stabilization mechanisms will help businesses adapt and reduce emissions effectively. In addition, a clear legal framework, synchronous and transparent market infrastructure will facilitate the development of this market.
Businesses and managers also emphasized the role of completing a synchronous legal framework, in line with international standards such as CDM, VCS, to create a link between domestic and international markets. This not only helps Vietnam participate deeply in the global carbon market but also opens up opportunities for technology transfer, management experience and sustainable development, contributing to achieving national climate goals in the goal of moving towards net zero emissions.