The carbon market and the responsibility to respond to climate change
Carbon credits were created to provide financial incentives to reduce greenhouse gas emissions and promote sustainable development. Individuals, companies, and governments can buy carbon credits to offset their greenhouse gas emissions or sell them for financial gain. Carbon credits were first mentioned in the Kyoto Protocol in 1997 and came into effect in 2005.
In Vietnam, the Party and Government have issued assorted policies and legal frameworks aimed at reducing greenhouse gas emissions and establishing a carbon credit trading market. Vietnam has had 150 projects granted 40.2 million carbon credits that have been traded on the global market.
Despite having significant potential to develop a carbon market, Vietnam still faces many challenges. The lack of its own carbon credit standards forces businesses to rely on international mechanisms without specific guidance for the domestic market.
Hong Van
