On the afternoon of September 9, Deputy Prime Minister Tran Hong Ha chaired a meeting to listen to a report on the Draft Decree on domestic carbon trading floors.
According to the Deputy Prime Minister, in the context of the world promoting commitments to reduce emissions and move towards net zero greenhouse gas emissions by 2050, many countries have formed markets for exchanging carbon credits, both compulsory and voluntary.
Any country that is well prepared will proactively grasp and calculate its benefits. On the contrary, if you are slow, you will be passive, even at a disadvantage.
However, for the carbon market to operate effectively, there needs to be a synchronous policy from granting quotas, monitoring implementation, as well as using economic tools such as taxes to create demand.
"Over the years, we have prepared techniques and legal issues, but the key is to have a market, have a real supply - demand and businesses see the benefits of investing in technological innovation and governance to reduce emissions" - he said.
The Deputy Prime Minister emphasized 4 issues that the Ministry of Finance needs to absorb and improve in the Draft Decree.
First of all, regarding the division of responsibilities between the Ministry of Agriculture and Environment, the Ministry of Finance and the Vietnam Securities Commission, the Deputy Prime Minister agreed with the assessment of the Ministry of Justice and the analysis of ministries and branches.
Accordingly, issues related to professional functions and organization of trading floor operations are under the unified and comprehensive management responsibility of the Ministry of Finance and the Securities Commission.
On the contrary, regulations related to goods put on the market, quality of goods and related legal issues are the responsibility of the Ministry of Agriculture and Environment. In addition, the Ministry of Agriculture and Environment must coordinate inspection and supervision with the Ministry of Finance to ensure transparency, balance supply - demand and effective market operation.
Second, the Ministry of Agriculture and Environment must comprehensively monitor mechanisms and policies related to carbon credits, both domestically and internationally, including regulating supply and demand appropriately to create motivation for the market to operate effectively, avoiding the situation where too much supply causes low prices or high demand while supply is low, causing high prices. The first phase needs to increase demand for market operation and actual transactions.
Third, regarding banks participating in providing payment services, the Deputy Prime Minister said that it is necessary to stipulate that at least one bank is selected by the Vietnam Securities Commission, ensuring that it meets technical and legal conditions and has customers participating in transactions. Other banks can participate after meeting all the conditions.
Fourth, regarding the regulation on dispute resolution, complaints, compensation and prohibited acts, the Deputy Prime Minister said that the Decree only needs to state principles and serve as a basis for reference for relevant legal regulations such as securities, civil, commercial, etc.
Emphasizing that the early issuance of the Decree on domestic carbon trading floors is a necessary step to ensure feasibility, effective operation and meet the requirements of transparency and synchronization in carbon credit market management, the Deputy Prime Minister noted that market management agencies must have the capacity to meet international standards, ensuring accurate steps for measuring, statistics and confirming credits, in order to build a transparent and reliable operating mechanism from the beginning.
