On April 22, 2024, the Ho Chi Minh City Institute for Development Studies (HIDS) hosted a scientific seminar focused on the development of the carbon credit market in Ho Chi Minh City. The event brought together businesses, experts, and scientists to explore this emerging area.
The three-hour seminar centered around Resolution No. 98/2023/QH15 of the National Assembly, which pilots specific mechanisms and policies for the development of Ho Chi Minh City (Resolution 98). Discussions focused on the opportunities and challenges associated with establishing a viable carbon credit market.
Dr. Vu Truong Minh Huy, Deputy Director of the HIDS, highlighted that relevant stakeholders are actively researching and implementing this program. Initial projects include transitioning to LED lighting and installing solar panels on office building roofs, though these efforts face notable challenges.
Ho Chi Minh City is also committed to green growth, incorporating at least three elements related to carbon credits into its policy frameworks and action plans. The city’s broader vision includes creating a sustainable Can Gio district, promoting afforestation, improving urban environments, expanding renewable energy usage, establishing green village models, and fostering a green economy.
Dr. Lich, Tran Du, Chairman of the Advisory Council for the implementation of Resolution 98, spoke about the importance of the seminar (Image source: HIDS)
Pham Dang An, General Director of VP Carbon and Deputy General Director of Vu Phong Energy Group, emphasized the importance of Ho Chi Minh City acting as a project developer within the carbon market, contributing to the achievement of Nationally Determined Contributions (NDCs). He also advocated for prioritizing renewable energy conversion to support the development of green transportation and fostering collaboration to build understanding and capacity, which can attract green finance from global organizations.
Pham Dang An – Director of VP Carbon, Deputy General Director of Vu Phong Energy Group at the seminar
Discussions also addressed the challenges of securing funding for projects generating carbon credits, and the need for further refinement of relevant legal frameworks. The reliance on international organizations for developing and issuing valid carbon credits was noted. Furthermore, awareness of the carbon credit market remains uneven, with some aspects still requiring greater understanding.
| Resolution No. 98/2023/QH15 allows Ho Chi Minh City to experiment with financial mechanisms to reduce greenhouse gas emissions through the exchange and offsetting of carbon credits. The resolution stipulates that carbon credits generated from programs and projects are eligible for investment using city budget funds and can be traded with both domestic and international investors. The city retains 100% of the revenue from these carbon credit transactions, which will be allocated to climate change adaptation programs, green economic development initiatives, the advancement of a digital economy, and the promotion of a circular economy. |
| The resolution comprises 12 articles, outlining experimental mechanisms and special policies for Ho Chi Minh City’s development, covering areas such as investment management, finance, the state budget, urban management, environmental resources, priority industries for attracting strategic investors, management of science and technology and innovation, the organization of the city’s government apparatus, and the development of Thu Duc city. The resolution took effect on August 1, 2023. |
Vu Phong Energy Group
Source: https://vuphong.com/the-potential-of-the-carbon-credit-market-in-hcm/.
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