MoIT unveils a plan to strengthen carbon credit management

June 18, 2024 - 13:40
The Ministry of Industry and Trade (MoIT) has sent details to the Prime Minister on how to implement plans to strengthen the management of the carbon credit market and targets on cutting green house gases, under the Nationally Determined Contribution (NDC).
A wind farm in Ninh Thuận Province. — VNA/VNS Photo

HÀ NỘI — The Ministry of Industry and Trade (MoIT) has issued a plan to the Prime Minister on strengthening carbon credit management in order to implement the Nationally Determined Contribution (NDC).

According to the plan, the industry and trade sector will focus on implementing a number of key tasks.

One of them is to develop a sectoral greenhouse gas emission reduction plan for the periods up to 2025 and from 2026 to 2030, as mandated by Decree No. 06/2022/ND-CP on greenhouse gas emission reduction and ozone layer protection. This plan is expected to be completed by the third quarter of 2024.

The ministry will coordinate with relevant agencies to advise competent authorities to decide on negotiations, signing and implementing agreements or contracts with international partners on transfer carbon credits, reporting the results of reducing greenhouse gas emissions in the areas under the management of the industry and trade sector in accordance with the national greenhouse gas emission reduction goal.

They will need to evaluate the readiness to participate in the carbon market of a number of potential sectors in the industry and trade sector, such as steel and electricity production.

They also need to conduct a review of the legal basis, domestic real situation and international experience on management, trading and exchange of renewable energy certificates (RECs) associated with implementing the national emissions reduction goal.

The final part of the directive sets out the goals in reducing greenhouse gas emissions, implementing the NDC, methods of creating carbon credits, participating in the voluntary carbon market, and organising and developing the carbon market in terms of compliance for the industry and trade sector.

The Department of Energy Saving and Sustainable Development is tasked with developing the sectoral greenhouse gas emission reduction plan and reviewing the legal basis and international experiences in REC management. This department will also coordinate with other relevant agencies to negotiate and implement international agreements on carbon credit transfers.

Other departments, including the Department of Electricity and Renewable Energy, the Electricity Regulatory Authority, and the Department of Industrial Safety and Environment, will support the Department of Energy Saving in executing these tasks.

The Ministry aims to finalize the sectoral greenhouse gas emission reduction plan and the report on REC management by September 30. The comprehensive plan will involve various departments and stakeholders to ensure successful implementation and alignment with national emission reduction goals. — VNS