The official launch of Vietnam's greenhouse gas emissions trading system (ETS) may take place in 2028, 2 years later than planned.
This is reported by Hisu Lee, energy and commodities reporter at Bloomberg LP, citing the latest draft of the document, which was reviewed by Bloomberg.
The journalist noted that the new version provides for some significant changes to the existing plan of the Asian country, such as the design of the system and the scope of its coverage. According to her, the draft decree does not contain the term “pilot”, which was in previous versions of the document. It is expected that planning for the allocation of quotas will be completed by the end of this year.
It is also expected that Vietnam's ETS will cover about 150 companies in such industries as thermal power, steel and cement. The companies involved will be able to use international carbon credits to compensate for up to 20% of their allocated volume, compared to 10% in the previous plan, the new version of the document says.
The country's ETS will be based on an intensity-based approach rather than an absolute limit. This means that emission limits will be tied to the company's production volumes, allowing for flexible response to growth.
Mai Duong, carbon market analyst at Veyt, notes in her report that Vietnam does not have the technical capacity to measure and report emissions. According to her, the country also lacks verification bodies and standards, which may hinder the successful deployment of the carbon market.
Recently, EcoPolitic reported that a carbon market was launched in Brazil.
