Draft decree to enable carbon credit transactions through bilateral deals
VIETNAM, May 9 -
HÀ NỘI — The Ministry of Natural Resources and Environment (MoNRE) is seeking feedback on a draft decree on greenhouse gas (GHG) emissions reduction and ozone layer protection.
The draft contains provisions covering carbon credit transactions between countries through bilateral deals, which is in line with Article 6.2 of the Paris Agreement.
It also includes provisions that enable the governing body in charge of a public investment project to sign carbon credit deals with other countries following the Law on International Agreements.
The deals must specify the amount of GHG emission reductions generated by the project to be transferred.
Under the draft decree, the Ministry has the authority to issue a Letter of Approval for the project based on the request of the governing body, the opinions of relevant ministries and Việt Nam's national GHG emission reduction targets.
If the project is not granted a Letter of Approval, its GHG emission reductions will be counted toward Việt Nam's Nationally Determined Contributions (NDCs) but cannot be counted toward other countries' NDCs.
Decree No. 06/2022/NĐ-CP on greenhouse gas (GHG) emissions reduction and ozone layer protection was issued on January 7, 2022, to make way for a domestic carbon trading market.
Under the plan specified in the decree, Việt Nam will develop a legal framework for carbon credit transactions and operating rules for a carbon trading platform by 2027.
A supervising body will also be established to implement the trial run of the platform in 2025 and put it into official operation in 2028.
It is worth noting that the provisions on Letters of Approval are absent in the decree. — VNS
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