CARBON CREDIT MARKET IN VIETNAM: HIGH POTENTIAL, LESS EXPLOITATION

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Global carbon credit market is being effervescent. In 2019, its revenue was 45 billion USD. Vietnam is one of the highest potential carbon credits, but it was sill lack of exploitation.

Environmental experts said that, there are two promising fields that can be instantly exploited for carbon credits are steel manufacture and solid waste treatment.

In steel manufacture, there are more than 300 SEMs in field of steel producers. Annually development rate is always high, about 18% and 20% for material and consumption, respectively. Even though, because of being priority of steel development for a long time the manufacture technology was alleged out of control and caused the high emission which was a profoundly serious environment impact.

According to the Department of Energy Efficiency and Sustainable Development, Ministry of Industry and Trade, to produce 10 million tons of steel its emission was about 21 million tons of CO2. In field of steel, the emission would be estimated about 125 million tons of CO2 in 2025 and increase to 133 million tons of CO2 in 2030. Which is about 17% of all nation emission. The main reason is most of steel factories are using fossil energy or electricity.

In the meanwhile, reports of Ministry of Environment and Natural Resource shown that Vietnam has discharged about 12 billion tons of solid waste every year. More than 90% of those are buried treatment. Ho Chi Minh City has the largest amount of urban solid waste (3,5 million tons/year) with about 90% of treatment is buried.

Ministry of Construction has an inventory on greenhouse gas, the result illustrated that buried treatment of solid waste has discharge 6.5 million tons (2014) up to 8.1 million tons (2017). This amount may reach to 10 billion tons in 2020.

Decreasing amount of greenhouse gas is not only reducing environmental pollution risks but also making the base for completion of mechanism of Vietnam’s carbon credit market.

Less exploitation

There are many infrastructures to be completed to establish the fulfill carbon credit market. At first, carbon must be evaluated. This is a required condition for investors and enterprises implement the purchase of carbon credit, open the new way for environment protection.

In the other hand, the inventory system for greenhouse gas needs to be issued to clearly monitor the amount of greenhouse gas in state, regional, ministry and enterprise levels according to the international standards. The next step is establishment of critical quota for every ministry, sub-ministry, and enterprises.

Government should more tighten in attraction of investment and technology innovation in enterprises. Especially in time that Vietnam is being the destination of foreign investment and the safe place for global supply chains to move in./.

Source:SGGP

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