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| The MONRE would take charge of issuing approval letters for international carbon credit transfers__Photo: VNA |
The Ministry of Natural Resources and Environment (MONRE) is working on a draft decree revising Decree 06 of 2022 on mitigation of greenhouse gas (GHG) emissions, development of the carbon market and protection of the ozone layer, which is expected to improve the legal basis for achieving the goal of net-zero emissions in 2050.
Noteworthily, the draft decree is added with several regulations on implementation of the mechanism on carbon credit exchange and offset between countries through bilateral agreements under Article 6.2 of the Paris Agreement.
While Decree 06 does not stipulate the issuance of approval letters for international carbon credit transfers, the draft specifies the competence and procedures for issuance of these letters.
Accordingly, for public investment projects, project-managing agencies would be given the authority to enter into carbon credit deals in accordance with the Law on International Agreements. Such deals must include contents on the volume of GHG emission reduction to be transferred.
The MONRE would take charge of issuing approval letters for international carbon credit transfers based on requests of managing agencies, opinions of line ministries and national GHG emission reduction targets.
For projects unqualified for issuance of approval letters, their GHG emission reductions and carbon credits would be only counted into Vietnam’s Nationally Determined Contributions (NDCs) but not into NDCs of other countries and other international GHG emission reduction goals.
In order to facilitate the exchange of GHG allowances, the MONRE proposes allowing more subjects to participate in the domestic carbon market to cover: (i) subjects entitled to exchange GHG allowances that are establishments allocated GHG allowances and (ii) subjects entitled to exchange carbon credits, including establishments allocated GHG allowances, owners of programs/projects eligible for application of carbon credit exchange and offset mechanism, and organizations and individuals engaged in carbon credit trading.
The purchase, sale and auction of GHG allowances and purchase and sale of carbon credits would be conducted on the carbon credit exchange. Meanwhile, the transfer, borrowing, return and offset of GHG allowances would be carried out via the national registration system.- (VLLF)
