Our CEO, Dr. Nam NGUYEN had the privilege to participate in the “Carbon Market – Opportunities Toward Net Zero” forum organized by Vietnam’s The People’s Deputies newspaper on August 23, 2024. As Vietnam commits to achieving Net Zero by 2050, the development of a carbon market is crucial.
Key Takeaways from Dr. Nam’s insights:
- Vietnam’s Potential: With its tropical location and growing economy, Vietnam holds significant potential in renewable energy and carbon absorption. This offers a unique opportunity for businesses to capitalize on carbon credits while aligning with global sustainability standards.
- Legal Clarity: The success of carbon markets depends on a clear legal framework. Carbon credits are intangible assets that must be protected by law. It’s essential to define ownership and the legal status of these credits to ensure transparency and fairness.
- EU’s CBAM: The EU’s Carbon Border Adjustment Mechanism (CBAM), effective from October 2023, poses both challenges and opportunities. Vietnamese exporters, particularly in sectors like steel and cement, must prepare for the additional costs and reporting requirements. However, CBAM also presents a chance for businesses to accelerate their green transition, enhance product competitiveness, and tap into the growing demand for sustainable products.
- Adapting to Global Carbon Market Ecosystems: Different countries adopt a variety of methods and regulations in their carbon markets. As Dr. Nam emphasized, no single approach is universally perfect. Vietnam has three years until the carbon market implementation begins, and this time should be used for gradual steps, pilot evaluations, and the expansion of successful models. These pilots are essential for providing a practical basis for the necessary legal adjustments.
- State as a Partner: It’s crucial for the state to act as a supportive partner in this transition, ensuring that businesses can profit from green transformation rather than viewing it as an obligation. Particularly in the post-COVID-19 era, where economic challenges persist, the state’s role in facilitating this shift cannot be overstated.
At KLINOVA, we remain committed to supporting businesses through this transition, helping them navigate the complexities of carbon markets and seize the opportunities they present. Together, we can build a sustainable future for Vietnam and the world.
