The HCMC Institute for Development Studies and Advisory Council for the Implementation of Resolution 98 held a conference on the development of the carbon credit market in the city on April 22.
Dr. Truong Minh Huy Vu, deputy director of the HCMC Institute for Development Studies, speaks at the meeting. (Photo: SGGP)
Resolution 98 of the National Assembly on piloting specific mechanisms and policies for the development of HCMC allows HCMC to develop a carbon credit market and implement a trial of a financial mechanism to carry out solutions for reducing greenhouse gas emissions by exchanging and trading Carbon credits with local and international investors. The city will enjoy 100 percent of the revenue from carbon credit transactions to invest in programs and projects to respond to climate change and develop a green economy, digital economy, and circular economy in the city.
According to Dr. Truong Minh Huy Vu, deputy director of the HCMC Institute for Development Studies, many international studies have highlighted the significant potential of creating carbon credits in HCMC. However, the current challenges are the incomplete legal framework and investment capital required to create sustainable, high-quality carbon credits. The creation and pricing of carbon credits are determined by foreign organizations. Awareness of the carbon market is not yet fully understood.
At the seminar, many experts said that HCMC needs to establish a voluntary carbon market as soon as possible.
According to Mr. Nguyen Hoang Nam from PwC Consulting Company, the strategy to approach carbon credit trading to offset carbon in the voluntary market should be implemented first at the current time due to its lower cost and higher efficiency. Meanwhile, the approach of carbon emission quota trading may be considered for implementation later as it requires more time.
Dr. Tran Du Lich, Chairman of the Advisory Council for the Implementation of Resolution 98, suggested the HCMC Institute for Development Studies to collect and gather opinions from experts to have a proposal on the necessary steps for the establishment and development of the carbon credit market in the city by the end of July.
By Mai Hoa – Translated by Kim Khanh
