Vietnam’s Carbon Market & REC Insights from ACA-Vietnam Event

Navigating the complexities of the carbon market and Renewable Energy Certificates (RECs) in Vietnam is increasingly critical for businesses striving for sustainability. As Vietnam accelerates its energy transition and grapples with pressing emission reduction targets, understanding the evolving landscape of carbon credits and RECs isn’t just an advantage—it’s becoming essential. Recently, ACA-Vietnam, in collaboration with WWF-Vietnam and VP Carbon, convened a vital end-of-year program to address these shifts and equip stakeholders with the knowledge needed for 2024 and beyond. This article delves into key insights shared at the event, outlining the current state of these markets and providing valuable perspectives for those seeking to actively participate.

Recent Developments in Vietnam’s Carbon Market and Renewable Energy Certificates (RECs)

ACA-Vietnam, a member of Alliances for Climate Action, recently hosted a year-end program on December 22, 2023, in collaboration with WWF-Vietnam and VP Carbon. The event, coordinated by Mr. Pham Dang An, Director of VP Carbon and Deputy General Director of Vu Phong Energy Group, provided valuable insights into the evolving carbon market and Renewable Energy Certificates (RECs) market for attendees.

The program served as a valuable opportunity for delegates to reflect on the past year’s activities and plan for the year ahead. The focus was on presentations and discussions concerning carbon certificates and renewable energy certificates, fostering a deeper understanding of the registration and development processes involved. This is particularly relevant given the increasing global focus on emission reduction and the growing importance of the energy transition.

Mr. An shared a comprehensive overview of the global landscape, encompassing both compliance and voluntary carbon markets. He highlighted prominent organizations offering carbon market standards and certifications, including Gold Standard (GS) and Verra with the Verified Carbon Standard (VCS). To ensure credibility, Mr. An emphasized four key criteria for issuing carbon credits: (1) Real and Measurable, (2) Permanent and not reversed, (3) Additional, and (4) Independently verified.

Vietnam is actively developing its own regulatory framework for the carbon market. The Ministry of Natural Resources and Environment, the Ministry of Finance, and other relevant bodies are developing plans to establish a pilot carbon credit trading system starting in 2025, with full operational carbon credit trading floor scheduled for 2028, as outlined in Decree 06/2022/N-CP.

Mr. An, Director of VP Carbon, shared his expertise at the program.

Beyond carbon credits, Mr. An also addressed the growing Renewable Energy Certificates (REC) market. He noted its increasing activity, driven by companies and organizations striving for 100% renewable energy targets.

Domestically, Vietnamese manufacturing businesses are showing increased interest in RECs, particularly those related to I-REC. VP Carbon is a leading Vietnamese company offering I-REC registration and trading services. This offering is part of VP Carbon’s broader suite of solutions designed to assist organizations in reducing greenhouse gas emission reduction and achieving carbon neutrality; these also include guidance on registering CERs certifications and comprehensive ESG consulting services.

The program also included updates from Ms. Pham Thi Cam Nhung (WWF Vietnam) and Ms. Vu Thi Bich Hop (Centre for Sustainable Rural Development) regarding the recent COP28 Conference. Attendees concluded the event by reviewing ACA-Vietnam’s 2023 accomplishments, setting the stage for new milestones in 2024 focused on advancing the energy transition and addressing climate change within Vietnam.

Ms. Nhung from WWF Vietnam provided insights on COP28.

Ms. Hop from the Centre for Sustainable Rural Development shared updates on COP28.

Ms. Truc from ALLCOT AG contributed to the discussions.

Attendees captured memories at the program.

Vu Phong Energy Group

Learn more about Vietnam’s carbon market and REC initiatives