Vietnam’s multi-industry corporation CT Group launched the ASEAN Carbon Credit Exchange Joint Stock Company (CCTPA) on Friday, marking the debut of the country’s first-ever corporate initiative in introducing a voluntary carbon emissions exchange.
CCTPA will stand as the pioneering company in Vietnam to offer comprehensive consultancy services to enterprises, organizations, and individuals involved in developing carbon credit projects, carbon offset and credit mechanisms, as well as the application of carbon taxation at both regional and global levels.
This endeavor aligns with international environmental trade policies and seeks to foster a low-carbon emission economy.
Hoang Bach Duong, vice chairwoman of CT Group, emphasized that establishing a carbon market and green finance market is an unavoidable trend to enhance businesses’ competitiveness.
This is because meeting the stringent carbon requirements imposed by major markets will play a decisive role in the global supply chain competition.
Duong also noted that the launch of CCTPA will incentivize businesses to shift to cleaner technologies, thereby reducing carbon emissions and working toward Vietnam’s goal of achieving net-zero emissions by 2050.
Additionally, the company plans to invest in researching the application of blockchain technology in the carbon market to ensure transparency in managing, allocating, transferring, and calculating carbon credits.
In the upcoming period, CCTPA will establish a technological platform to transform into an online carbon credit trading marketplace, according to the company's deputy general director Nguyen Vo Truong An.
"This platform's model is designed to facilitate favorable pricing dynamics for both buyers and sellers, with a focus on enhancing the value of Vietnam's carbon credits," An said.
"Currently, numerous projects in Vietnam are selling carbon credits globally, but they often encounter challenges due to relatively low pricing.
"Therefore, the introduction of a technology-driven marketplace would effectively address pricing issues, ensure transparency, and operate fully on automation."
Vietnam will pilot a carbon credit market in 2025 before operate it oficially in 2028, according to Dr. Tang The Cuong, director of the Ministry of Natural Resources and Environment’s Department of Climate Change.
Currently in the world, 58 countries are developing carbon markets, 27 others are collecting carbon taxes, and some others are applying both, Dr. Cuong said.
Carbon credits are tradable certificates that give holders the right to emit a certain amount of CO2 or another amount of greenhouse gas converted to CO2 equivalents.
One carbon credit is equal to one ton of CO2 or one ton of CO2 equivalents.