[ESG] The ESG landscape – news updates and an economist's perspective on environmental issues – an analysis of the carbon credit market
🌍A. AN ECONOMIST'S PERSPECTIVE ON ENVIRONMENTAL ISSUES
On 8 February 2024, Dr. Nguyễn Chí Hiếu, an economist, gave a detailed analysis of several investment sectors, including real estate, securities, bank deposits, gold and the US dollar.
Notably, he raised the issue of the Environment as one of the three most important issues of 2024, placing particular emphasis on the Government's plans for a carbon credit market and the Green transition of the entire economy.
This is a favourable context for organisations and businesses considering investing in and implementing ESG-related transitions and actions.
In addition, starting activities related to the carbon credit market & greenhouse gases is also a first step for organisations to tap into opportunities in the near term.
🌍 B. THE CARBON CREDIT MARKET
Some points to note regarding the carbon credit market:
– Market participants include: facilities on the List of sectors and GHG-emitting facilities required to conduct a GHG inventory; organisations implementing carbon credit programmes and projects; organisations and individuals eligible to invest in and trade carbon credits in accordance with the law; and trading support organisations.
– Commodities on Vietnam's carbon credit market are of 2 types: greenhouse gas emission quotas; and carbon credits certified by the Ministry of Natural Resources and Environment (MONRE) and traded on the domestic carbon credit exchange.
– Under Article 19 of Decree No. 06/2022/ND-CP, the exchange of greenhouse gas emission quotas and carbon credits is conducted on the carbon credit exchange of the domestic carbon market in accordance with regulations.
– Greenhouse gas emission quotas specified in Clause 2, Article 12 are traded on the exchange. 01 unit of greenhouse gas emission quota equals 01 tonne of CO2 equivalent.
– Carbon credits obtained from programmes and projects under carbon credit exchange and offsetting mechanisms may be converted into offset units for greenhouse gas emission quotas on the exchange. 01 carbon credit equals 01 tonne of CO2 equivalent.
🏛 C. GOVERNMENT ACTIONS ON THE CARBON CREDIT MARKET:
– Deputy Prime Minister Trần Hồng Hà clearly stated the Government's position: https://lnkd.in/gcaHbzAj
– State management agencies, including ministries (e.g. the Ministry of Construction), have issued Guidance on determining emission quotas
– Ministry of Natural Resources and Environment: has opened a Public Service registration portal for the Certification of carbon credits and greenhouse gas emission quotas traded on the domestic carbon market exchange
– Ministry of Finance: needs to mobilise representatives of relevant ministries and sectors and a team of experts to fully, comprehensively and thoroughly study the development of carbon credit market policies in other countries, such as: emission quota allocation, operating models, and economic and financial instruments
