Exploring Potential Participation of Vietnam in the Carbon Market

Abstract

Currently, the development of the carbon market is considered as an urgent requirement because it contributes to creating certain economic values and protecting the environment and sustainable development of a country. In addition, this instrument can also enhance diplomatic relations through scientific, technological and financial investments among countries all over the world. Vietnam is assessed as having potential to reduce its greenhouse gas (GHG) emissions by 9% compared to the Business-As-Usual scenario by 2030 using domestic resources (equivalent to 83.9 million tons of CO2eq). The above-mentioned 9% contribution can be increased by up to 27% (equivalent to 250.8 million tons of CO2eq) if the country can receive the international support through bilateral and multilateral cooperation as well as the implementation of new mechanisms under the Paris Agreement. The paper gives an overview of a number of domestic carbon markets in some countries and assesses the potential for developing Vietnam’s carbon market.