In the context of increasingly serious urban air pollution and climate change, the development of electric vehicles is not only an inevitable trend in technology, but also opens up a potential green economic market - the carbon credit market from electrification transportation.
This is considered a dual direction: both creating financial value and making an important contribution to helping Vietnam get closer to the goal of reducing greenhouse gas emissions and achieving Net Zero by 2050.
carbon credit - a "measurement" mechanism for green contribution
According to international regulations, each carbon credit equivalent to 1 ton of CO2 is emission or absorption reduced compared to the normal scenario. Businesses and organizations can exchange and buy and sell these credits as a special commodity - both a financial tool and an environmental commitment.
In Vietnam, the carbon credit market has been developed by the Ministry of Natural Resources and Environment (now the Ministry of Agriculture and Environment) with a trial operation roadmap from 2025. Emission reduction projects, including electric vehicles, renewable energy, and improved energy-saving technology, will be important sources of credit.
Associate Professor, Dr. Nguyen Dinh Tho, Deputy Director of the National Transport Strategy and Policy Institute, said that Vietnam's electric vehicle credits can be shaped based on the international framework and are fully capable of playing a central role in the strategy of reducing emissions in the transport sector. Charging station investors have clear motivation when electric vehicle credits generate secondary revenue, while electric vehicle manufacturers are given priority to access credits if they reach the emission reduction threshold from the battery production to assembly process. Projects using renewable energy sources at public vehicle charging stations can also be integrated into the emission reduction program under Article 6 of the Paris Agreement.
Vietnam can experiment in major cities such as Hanoi, Ho Chi Minh City, Hai Phong, Can Tho, Da Nang, Hue. Each charging station registers an identification code, synchronizes with the information of the power transmission unit and updates data on the national carbon registration system. The first attraction is high-emission areas such as the city center, industrial parks, bus stations, and logistics ports.
Electric vehicles - the "gold mine" of carbon credits in the transportation industry
According to calculations based on international standards (Verra, Gold Standard, GCC), each electric vehicle can generate a carbon credit equivalent to an emission reduction compared to vehicles using fossil fuels. Specifically:
An electric motorbike helps reduce about 163.2 kg of CO2/year, equivalent to 0.1632 carbon credits.
An electric car reduces about 926.6 kg of CO2/year, equivalent to nearly 1 carbon credit.
An electric bus reduces up to 1516 tons of CO2/year, equivalent to 1516 carbon credits.
(Research is based on specific vehicle models. Different models can give different numbers depending on the energy consumption).
Even in cases where the battery is fully charged with coal-fired thermal power, electric vehicles still help reduce emissions significantly compared to gasoline and diesel vehicles. When power sources gradually shift to renewable energy (wind power, solar power, LNG, etc.), the efficiency of emission reduction will increase many times, creating a greater carbon credit value.
According to calculations, with the current development speed of electric vehicles in Vietnam, by 2030, the amount of emissions reduced could reach about 7 million tons of CO2, equivalent to more than 7 million carbon credits. This figure accounts for about 15.5% of the emission reduction target of the entire transport sector according to Vietnam's National driving force (NDC).
Not only a green economy, but also a clean air
Traffic accounts for about 18 20% of Vietnam's total greenhouse gas emissions, and is also the main source of urban air pollution, especially in Hanoi and Ho Chi Minh City. Therefore, electrifying vehicles will help reduce CO2 emissions and reduce NOx, SO2, and PM2.5 fine dust - factors that directly affect people's health.
When integrated with the carbon credit policy, each electric vehicle in circulation not only helps "green" the environment, but also becomes an economic asset that can be converted to real value - through the domestic and international credit trading market.
Vietnam is in the process of completing the legal framework for the carbon market according to Decree 06/2022/ND-CP. It is expected that by 2028, the domestic carbon credit exchange will officially operate. In that picture, electric vehicles are one of the most potential areas for developing credit projects, thanks to the clear, transparent, and long-term qualitability of emission reduction results.
Mr. Nguyen Tuan Quang, Deputy Director of the Department of Climate Change (Ministry of Natural Resources and Environment) said: The Ministry of Natural Resources and Environment is actively coordinating with ministries and branches to improve standards and regulations for gasoline vehicles, perfect standards and regulations for electric vehicles, build and complete a legal corridor for the carbon market, implement and transfer ITMO according to Article 6 of the Paris Agreement. The goal is to create economic momentum, according to market principles, for businesses and people to switch to green means of transport".
However, experts note that to make this mechanism truly effective, it is necessary to establish a national standard credit calculation method, and at the same time, it is possible to connect electric vehicle manufacturing enterprises with carbon investors, creating a financial flow to encourage the production and consumption of green vehicles.
