The Southeast Asia Energy Transition Partnership (ETP) recently concluded Vietnam’s first-ever capacity-building courses on carbon markets, Emissions Trading Systems (ETS), and the application of a market simulation tool. This initiative marks a significant step forward in Vietnam’s journey towards establishing a well-designed carbon market, a crucial element in achieving its ambitious greenhouse gas (GHG) reduction targets.

Why is a Robust Carbon Market Important for Vietnam?

Vietnam has committed to ambitious goals, aiming to reduce its GHG emissions by 15.8% unconditionally and 43.5% conditionally by 2030. An effectively designed ETS plays a pivotal role in achieving these targets.

How Does an ETS Work?

An ETS sets a cap on total emissions within a defined sector. Companies then receive or purchase emission allowances to operate within this limit. This system incentivizes businesses to reduce their emissions efficiently. Companies that exceed their allowance can buy additional allowances from those who have reduced their emissions below their allocated amount. This creates a market-driven system where reductions are achieved in a cost-effective manner, while also generating revenue through allowance auctions. The funds raised through these auctions can then be reinvested in climate initiatives, further accelerating Vietnam’s efforts to combat climate change.

Building Capacity for Effective Implementation

The success of the capacity-building courses is a testament to the collective effort of all parties involved. ETP extends its sincere gratitude to the global experts who shared their invaluable knowledge and expertise: Michael Mehling, Josh Margolis, Karolien Casaer-Diez, Roxanne Tan, Victor Escalona, and Dang Hanh. Additionally, we recognize the vital role played by the team at VNEEC in coordinating and delivering the training programs effectively.

The implementation of ETP’s projects is made possible through the ongoing support of the Department of Climate Change (DCC) under the Ministry of Natural Resources and Environment (MONRE).

This successful training program signifies Vietnam’s commitment to a sustainable future. By equipping stakeholders with the necessary knowledge and skills, ETP is proud to support Vietnam in its journey towards a carbon-neutral future.