Developing Green Financial Markets is Key to Successful Green Transition

The seminar "International experiences on carbon market development and policy implications for Vietnam" with more than 250 delegates attending. Photo: Tuan Viet

On November 23, in Hanoi, the Ministry of Foreign Affairs, the Ministry of Natural Resources and Environment, and the Organization for Economic Cooperation and Development (OECD) jointly organized a seminar on developing a carbon market "International experience and policy implications for Vietnam."

In the context of green transition, developing a low-carbon economy towards a circular economy becomes an inevitable trend. Therefore, the seminar discussed international experiences and recommendations for Vietnam on carbon market development, including perfecting policy institutions, improving the quality of human resources, and infrastructure, and promoting international cooperation mechanisms.

Deputy Minister of Foreign Affairs Nguyen Minh Vu spoke at the seminar. Photo: Tuan Viet

Speaking at the opening of the seminar, Deputy Minister Nguyen Minh Vu affirmed that green transformation is a new source of motivation for rapid and sustainable growth.

Green standards are being shaped and accelerated into implementation in the direction of linking international trade and investment with criteria of carbon emission reduction and sustainable development.

Along with that, new links and initiatives associated with green fields are also being strongly promoted. This is a key time for Vietnam to establish and continuously increase its position in global green value chains.

Deputy Minister Nguyen Minh Vu emphasized that developing the green financial market, of which the carbon market, will be the key to a successful green transition.

However, this will not be easy, especially for developing countries that do not have uniform and quality systems of green regulations and standards.

The Deputy Minister expressed his belief that the opinions at the seminar will be a useful source of reference information for central and local departments, ministries, branches, and localities to perfect the legal framework for carbon market development in Vietnam.

Nguyen Tuan Quang, deputy director of the Department of Climate Change under the Ministry of Natural Resources and Environment spoke at the seminar. Photo: Tuan Viet

Nguyen Tuan Quang, deputy director of the Department of Climate Change under the Ministry of Natural Resources and Environment, said that Vietnam issued important strategic documents regarding green growth and sustainable development, including a roadmap for the development of carbon pricing tools, especially the compliance carbon market.

Initially, Vietnam aims to speed up the process of building regulations on carbon credit management and greenhouse gas emission quota exchange activities, guiding the implementation of domestic and international carbon credit exchange and offsetting mechanisms in accordance with the provisions of law and international treaties, pilot a carbon credit trading floor from 2025, he said.

OECD appreciated the Vietnamese Government's efforts to promote green growth and sustainable development. They expressed their impression of the commitment to net zero emissions at the COP26 and said that Vietnam has great potential in developing a dynamic, quality, and effective carbon market.

Participants noted that the compliance carbon market in Vietnam is being shaped. So far, Vietnam had 150 projects granted 40.2 million carbon credits, becoming one of the four countries with the most registered investment projects under the clean development mechanism.

Experts discuss this at the seminar. Photo: Tuan Viet

Representatives from international organizations advised Vietnam to pay greater attention to promoting a multi-stakeholder approach, strengthening cooperation among sectors, fields, and levels, and encouraging the participation of the private sector in the work while building a carbon database.

In addition to promoting internal resources, businesses, investment funds, and international organizations attending the seminar emphasized the role of international cooperation, saying they are ready to share and promote cooperation with Vietnam in the development of the carbon market.

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