Accelerating the formation of a domestic carbon market

(Dan Tri) - According to the Deputy Prime Minister, for the carbon market to operate effectively, there needs to be a synchronous policy from quota allocation, implementation monitoring, as well as using economic tools such as taxes to create demand.

A country that is well prepared will proactively grasp and calculate its own benefits.

On September 9, Deputy Prime Minister Tran Hong Ha chaired a meeting to listen to a report on the Draft Decree on domestic carbon trading floors (Draft Decree).

According to the Deputy Prime Minister, in the context of the world promoting commitments to reduce emissions, moving towards net zero greenhouse gas emissions by 2050, many countries have formed carbon credit exchange markets, both mandatory and voluntary.

The Government leader believes that a country that is well prepared will be proactive in grasping and calculating its own benefits. On the contrary, if it is slow, it will be passive and even disadvantaged.

However, for the carbon market to operate effectively, there needs to be a consistent policy from quota allocation, implementation monitoring, as well as the use of economic tools such as taxes to create demand.

According to the Deputy Prime Minister, over the past years we have prepared technically and legally, but the key is to have a market, real supply and demand, and businesses to see the benefits of investing in technological innovation and management to reduce emissions.

The issuance of a decree on a domestic carbon trading floor will create an important test step to verify the readiness and response of Vietnamese enterprises to international mechanisms on reducing greenhouse gas emissions.

Regarding the management agency, the Deputy Prime Minister requested separation between state management and trading floor operations, clear functions, clear authority, clear responsibilities, clear powers, to avoid overlap.

Reporting at the meeting, Deputy Minister of Finance Ho Sy Hung said that the goods on the carbon trading floor are greenhouse gas emission quotas and carbon credits as prescribed in Decree No. 119 amending and supplementing a number of articles of Decree No. 06 regulating greenhouse gas emission reduction and ozone layer protection.

The subjects participating in the transaction include establishments allocated quotas, organizations with carbon credits in Vietnam, and organizations providing financial services. Securities companies are allowed to participate as intermediaries in matching orders and making payments, but do not directly trade to limit speculation.

The draft also clearly stipulates unauthorized acts such as price manipulation, collusion, spreading false information, and taking advantage of technological loopholes to appropriate quotas or carbon credits.

An important highlight is that the draft clearly defines the rights and obligations of the Vietnam Securities Depository, Vietnam Stock Exchange and Hanoi Stock Exchange in participating in the operation of the carbon trading floor.

Taking advantage of the existing infrastructure of the stock market will save costs, while ensuring safety and limiting risks in transactions. In the initial stage, the securities company will act as an intermediary to control the balance, avoiding the situation of placing orders without money or without goods.

Regarding payment, the draft allows the selection of commercial banks that meet the necessary conditions to act as payment banks. During the pilot period, service providers will not charge fees, and will start charging fees from 2029.

Regarding the monitoring mechanism, the Ministry of Natural Resources and Environment is the leading agency, fully responsible for goods put into trading, quota allocation and carbon credit management.

The State Securities Commission is responsible for coordinating the inspection. The Vietnam Stock Exchange supervises the Hanoi Stock Exchange. The Hanoi Stock Exchange supervises the trading activities of its members. The Vietnam Depository Corporation supervises the depository members. Trading members are responsible for supervising the activities of customers who open accounts and participate in buying and selling.

The assignment of responsibilities is designed according to the principle that one task is assigned to only one presiding agency, ensuring clarity and transparency.

According to Deputy Minister Ho Sy Hung, the issuance of the decree will create a necessary legal corridor for the formation and operation of the domestic carbon market, while preparing for Vietnam to participate more deeply in the international carbon credit exchange mechanism in the coming time.

Deputy Prime Minister Tran Hong Ha chaired a meeting to listen to a report on the Draft Decree on domestic carbon trading floors (Photo: VGP).

There must be a market, there must be real supply and demand.

Concluding the meeting, the Deputy Prime Minister emphasized the issues that need to be absorbed and improved in the Draft Decree. Specifically, the Government leader agreed with the assessment of the Ministry of Justice and the analysis of ministries and branches. Accordingly, issues related to professional functions and organization of trading floors are under the unified and comprehensive management responsibility of the Ministry of Finance and the Securities Commission.

On the contrary, regulations related to goods put on the floor, goods quality and related legal matters are the responsibility of the Ministry of Agriculture and Environment. In addition, the Ministry of Agriculture and Environment must coordinate inspection and supervision with the Ministry of Finance to ensure transparency, supply-demand balance and effective market operation.

The Ministry of Agriculture and Environment must comprehensively monitor the mechanisms and policies related to carbon credits, both domestically and internationally, including regulating supply and demand appropriately to create incentives for the market to operate effectively, avoiding the situation of too much supply causing low prices or high demand but low supply causing high prices. In the first stage, it is necessary to increase demand for the market to operate and have real transactions.

Regarding banks participating in providing payment services, the Deputy Prime Minister said that it is necessary to stipulate that at least one bank be selected by the Vietnam Securities Commission, ensuring that it meets technical and legal conditions and has customers participating in transactions. Other banks can participate after fully meeting the conditions.

Regarding regulations on dispute resolution, complaints, compensation and prohibited acts, the Deputy Prime Minister said that the Decree only needs to state principles, serving as a reference basis for regulations in related laws such as securities, civil, commercial, etc.

The Government leader noted that the market management agency must have the capacity to meet international standards, ensuring accurate measurement, statistics and credit confirmation steps, in order to build a transparent and reliable operating mechanism right from the start.

Source: https://dantri.com.vn/kinh-doanh/day-nhanh-tien-do-hinh-thanh-thi-truong-carbon-trong-nuoc-20250909234058774.htm