Practical applications of carbon credits in the economy. Part XI: Bridging policy and strategy for the carbon credit market

DNHN - To develop the carbon credit market, the Government and businesses must improve cooperation and communication. The Government needs to provide clear policies, while businesses must adopt emission reduction strategies and leverage carbon credits.

The development of the carbon credit market requires synchronized strategies.

In the context of increasingly severe climate change, reducing greenhouse gas emissions has become an urgent task for many countries. The carbon credit market, operating on the "cap-and-trade" principle, has emerged as an essential tool in helping countries and businesses, especially in Vietnam, achieve climate goals. Each carbon credit corresponds to one ton of CO2 that is either not emitted or removed from the atmosphere, and the system allows companies to buy and sell credits to balance their emissions. For the carbon credit market to develop sustainably and effectively, building a bridge between policy and strategy is crucial.

Currently, Government policies are seen as key in establishing and regulating the carbon credit market in our country. To ensure transparency and fairness in credit transactions, a clear legal framework must be established. This includes setting specific emission limits for industries, strict regulations on reporting and auditing emissions and credits used, and implementing penalties for violations. Additionally, encouraging the development of clean technology allows companies to minimize emissions more effectively.

For the carbon credit market to operate efficiently, synchronized development strategies are necessary. Training and raising awareness among stakeholders about the benefits and mechanisms of the market are essential to increase participation and understanding. International cooperation also plays a vital role, helping countries learn from each other’s experiences and access advanced technology. Encouraging innovation by facilitating businesses to invest in green technology and improve production processes is an indispensable part of the strategy for developing the carbon credit market.

However, the carbon credit market also faces many challenges. The lack of synchronization between national policy systems can make cross-border credit transactions difficult. The risk of fraud, such as inaccurate reporting or illegal credit trading, can reduce the system's effectiveness. Additionally, the volatility of carbon credit prices can affect businesses' long-term plans and reduce market stability.

To overcome these challenges, building a strong bridge between policy and strategy is essential. Policies must be closely integrated with market realities and the actual needs of businesses, and there needs to be active involvement of stakeholders in the legislative process. The application of technology to monitor, report, and verify emissions will help enhance the market's transparency and reliability. Finally, continuously evaluating and adjusting policies to align with the actual situation and sustainable development goals is necessary to ensure the success of the carbon credit market in Vietnam.

On this matter, in an interview with the Business and Integration Magazine, Ms. Nguyễn Thị Thúy, General Director of Carbon Credit Institute Joint Stock Company, stated that building an effective bridge between policy and strategy is extremely important for the sustainable development of the carbon credit market in our country. A clear and stringent legal framework is the necessary foundation to ensure transparency and fairness in carbon credit transactions. "The Government needs to establish specific regulations on emission limits, reporting and auditing procedures, as well as sanctions for violations. This not only helps to increase trust in the market but also facilitates businesses to implement emission reduction strategies effectively," shared the General Director of the Carbon Credit Institute Joint Stock Company.

Ms. Thúy emphasized that raising awareness and training for stakeholders is an indispensable factor. Businesses need to clearly understand the operating mechanisms of the carbon credit market, the benefits of reducing emissions, and how to leverage credits to balance their emissions. The Government should collaborate with training organizations and industry associations to organize courses and seminars to help businesses grasp information and apply it in practice. The proactive participation of stakeholders will promote the carbon credit market's development in a more synchronized and effective manner.

Ms. Thúy analyzed that international cooperation and encouraging technological innovation are necessary conditions for Vietnam to maximize the potential of the carbon credit market. International agreements and programs can provide Vietnam with valuable experiences and advanced technology in emission management and credit trading. At the same time, the Government should create favorable conditions for businesses to invest in green technology and improve production processes to minimize emissions and enhance the market's efficiency. The close coordination between policy, strategy, and technology will be the key to developing the carbon credit market sustainably and effectively.

The future of the carbon credit market in Vietnam

The carbon credit market is gradually affirming its important role in the global strategy to reduce greenhouse gas emissions. Established based on the "cap-and-trade" principle, this system allows countries and businesses to buy and sell carbon credits to balance their emissions. In the context of increasingly severe climate change, optimizing the operation of the carbon credit market is an urgent task to achieve climate goals and sustainable development.

For the carbon credit market to develop strongly and effectively, close cooperation between the Government, businesses, and the international community is very important. The Government needs to establish a clear, fair, and transparent legal framework while applying control measures and encouraging clean technology. Businesses, for their part, need to proactively implement emission reduction strategies and effectively leverage carbon credits. The international community can play a supporting role by sharing experiences and advanced technology and establishing global cooperation agreements.

Building a bridge between policy and strategy not only helps enhance the sustainability of the carbon credit market but also contributes to environmental protection efforts. A transparent and fair carbon credit system will create favorable conditions for businesses and countries to participate, while also promoting sustainable development. Effective coordination between stakeholders will help achieve climate goals, protect the green planet, and maintain environmental balance for future generations.

The carbon credit market in Vietnam is on the path of development and is expected to play an increasingly important role in the nation's efforts to reduce greenhouse gas emissions. As Vietnam commits to achieving international climate goals, the carbon credit market provides a valuable opportunity for businesses and government agencies to balance emissions and promote sustainable development. However, to fully exploit the potential of this market, a clear legal framework and synchronized support from stakeholders are needed.

One of the biggest challenges the carbon credit market in Vietnam faces is the establishment of an effective legal and regulatory infrastructure. The Government needs to quickly establish detailed regulations on emission limits, carbon credit reporting and auditing procedures, and implement sanctions for violations. This not only helps ensure transparency and fairness in carbon credit transactions but also motivates businesses to invest in green technology and emission reduction solutions.

At the same time, international cooperation plays an important role in enhancing the efficiency of the carbon credit market in Vietnam. Participating in global climate agreements and international cooperation programs will help Vietnam learn from other countries' experiences and access advanced technology. Promoting technological innovation and encouraging investment in sustainable projects will create long-term benefits for the economy and environment.

The future of the carbon credit market in Vietnam promises to bring many opportunities but also no shortage of challenges. Effective coordination between policy and strategy, along with the proactive participation of the business community and international organizations, will be key to developing the carbon credit market sustainably and contributing positively to global environmental protection efforts.

However, Prof. Dr. Hoàng Xuân Cơ, former Director of the Center for Environmental Monitoring and Modeling Research at the University of Science, Hanoi National University, pointed out that the understanding of the carbon credit market in Vietnam is still very limited.

He argued that if the Government only issues regulations without thoroughly studying the content and operational mechanisms of carbon credits, these regulations may only be formal and not truly effective.

Mr. Cơ emphasized that for the carbon credit market to operate effectively, there must be the presence of both buyers and sellers. However, the current problem is that there is no clear mechanism for issuing carbon credits in Vietnam, specifying credit standards, and identifying the parties involved in transactions. This raises concerns that the carbon credit market in Vietnam may remain formal, lacking practicality and effectiveness.

According to Mr. Cơ, the success of the carbon credit market depends on the stakeholders' full and deep understanding of carbon credits. A specific roadmap and transparent implementation mechanisms are needed for carbon credits to be effective and contribute significantly to emission reduction and environmental protection efforts.

Phan Chinh