First carbon credit trading platform ASEAN launched in Việt Nam

Sunday, Oct 01, 2023 17:59

CT Group's leaders and guests at the launching ceremony of the first carbon credit trading platform CCTPA in Việt Nam. — Photo courtesy of the firm

CT Group has officially introduced the carbon credit trading platform ASEAN joint stock company (CCTPA), becoming the first of its kind in Việt Nam, proactively adapting to international environmental trade policies and aiming for a low-carbon and remarkable growth economy.

Starting in October 2023, the 27 member countries of the European Union initiated a pilot for carbon taxation on all exports to their market using the Carbon Border Adjustment Mechanism (CBAM). The US will be the next market to implement carbon taxation on imports in 2024, and in the future, many more countries in the Americas and Asia are expected to follow this trend. This is a global trend that Vietnamese businesses need to quickly and effectively adapt to in order to meet green standards and enhance long-term competitiveness.

The carbon market is seen as an effective and feasible tool for mitigating environmental damage, promoting sustainable development, and aligning with international standards. However, carbon credit projects in Việt Nam are relatively new and have not yet garnered much attention from businesses. It is essential to have a consulting entity that guides the carbon credit certification and registration process.

For this reason, the newly-launched company will provide comprehensive advisory information to Vietnamese businesses, organisations, and individuals on how to develop carbon credit projects, register, verify, and confirm carbon credits, as well as exchange, compensate, and secure carbon credit loans, and apply carbon taxes regionally and globally.

CCTPA is also researching the implementation of Blockchain and Crypto solutions for the carbon market, ensuring secure and transparent transactions, and building trust among participants. This approach sets it apart as an innovative and distinct player in the field.

Tăng Thế Cường, Director of the Climate Change Department of the Ministry of Natural Resources and Environment, said: “The net-zero commitment that Việt Nam made at COP26 in 2021 is ambitious and challenging. Building a carbon market is key. A well-built carbon market will contribute to achieving greenhouse gas emission reduction targets at low costs for businesses and society, while promoting low-emission technology development.”

CCTPA signed cooperation agreements with the Central Clean Water and Environment Association of Việt Nam, the Institute for Communication and Development Research (RED), research institutions, financial organisations, and international inspection units to synergise resources to develop breakthrough solutions and green technology applications for carbon emissions reduction, while coordinating green transition programmes toward the Net Zero goal.

CCTPA also donated 5,000 seedlings in support of the "Eliminate Sand for Livelihood" initiative, fundraising for aloe vera seedlings to support the Raglai minorities in southern Ninh Thuận Province. This programme not only contributes to environmental conservation but also improves the livelihoods of disadvantaged communities, creating positive changes in society. — VNS

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