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For many years, HCMC has played a leading role in economic development. However, due to the urbanization process (changing land use purposes to residential or working ones), the energy consumption in the city is extremely high (accounting for 9.25 percent of the national total in the 2010-2016 period). Adding to that is an increase in greenhouse gas emissions owing to industrial activities here as well as challenges from climate change.
Aware of this, HCMC has actively applied various non-structural and structural measures to cope with climate change. However, there is still much to be done and several problems to be addressed.
The Government has set up a route for the establishment and operation of a trading floor for carbon credits. Accordingly, the preparation and pilot time take place from 2021-2027, followed by the formal launch of this market in Vietnam in 2028.
The HCMC Finance Department informed that while waiting for the growth of the domestic carbon credit market with proper standards on the measurement, inspection, and accreditation processes, the city has proposed to actively approach international markets to gain practical experience via trading these credits.
The city plans to work with experts from global organizations in the process to enter international carbon credit markets. It is going to sell credits to purchasers, who will then offset the emissions committed to reducing as regulated.
On August 11, the HCMC Departments of Finance and Natural Resources & Environment held a meeting on the above plan, focusing on selecting suitable programs and projects, cooperating with credit issuance organizations to create emission reduction credits, choosing methods for carbon credit selling and buying, discussing procedures to select credit buyers.
By Minh Hai – Translated by Thanh Tam