HCM City (VNS/VNA) - Vietnam, as one of the most vulnerablecountries to climate change, is set to develop a roadmap to implementmarket-based carbon pricing tools as part of its effort to reduce greenhousegas (GHG) emissions.

Nguyen Tuan Quang, deputy director of the Climate Change Department under theMinistry of Natural Resources and Environment, said: “Climate change hasnegatively affected the country’s efforts to reduce poverty and developsustainably.”

The most vulnerable sectors include water resources, agriculture, foodsecurity, and public health, mostly in the deltas and coastal areas.

Vietnam has shown a strong commitment to green development and environmentalprotection over the past decade. The country became a member of the UnitedNations Framework Convention on Climate Change (UNFCCC) in 1994, and ratifiedthe Kyoto Protocol in 2002, he said.

“The Paris Agreement on climate change under the UNFCCC passed in 2015 affirmedthe role and legal responsibilities of nearly 200 countries in responding toglobal climate change, especially reducing Nationally Determined Contributions(NDC),” according to Quang.

In September, the country’s NDC committed to the UNFCCC to reduce GHGs by 9 percentby 2030 by using domestic resources and by 27 percent with internationalsupport.

To achieve these goals, the country needs to implement market-based carbon pricingtools through a system in which carbon emissions quotas and credits can beexchanged fairly among businesses, according to Quang.

Pham Trong Quy Chau, deputy chairman of the Association of Enterprises inIndustrial Parks in HCM City, said that developing the carbon market throughfinancial tools such as taxes and carbon trading is an effective measure toreduce GHG emissions.

For developing countries like Vietnam, participating in the carbon market is anopportunity to generate revenues, access modern low-carbon technology, and joinhands with the rest of the world to reduce GHG emissions.

In the long run, companies will benefit from the carbon pricing mechanism.Credits on GHG emission reduction can be sold to other enterprises. Enterprisesthat discharge excessively must buy credits from other enterprises to meet therequirements according to the law.

The association will provide advice and assistance to businesses in the city toimplement the programme, Chau said.

Tran Dang Khoi, deputy director of Alenna Energy Technology Co., Ltd.,recommended setting up a trusted and reputable carbon credit trading floor forenterprises.

“Carbon-emission pricing solutions are expected to open up many newopportunities in environmental protection, forcing enterprises to invest in GHGmitigation or pay to buy carbon credits.”

To build a carbon market, the Government needs to provide more informationabout technology, policies, and techniques to businesses, he said.

The Ministry of Natural Resources and Environment has proposed adding thecarbon market to the revised draft Law on Environmental Protection. TheNational Assembly is expected to approve the draft law at the upcoming 10thsession.

In 2012, Vietnam joined the Partnership for Market Readiness (PMR) with supportfrom the World Bank. It aims to establish carbon markets in developing,emerging countries like Vietnam.

Vietnam recently updated the country’s NDC by increasing its capability toadapt to climate change through better governance and preparedness againstnatural disasters.

Vietnam is one of five countries most affected by climate change. If sea levelsrise by one metre, one-fifth of the country’s population or some 18 millioncould become homeless and 12.3 percent of farmland could disappear, expertshave warned./.