Legal and digital leverage paves the way for sustainable carbon market

Legal and digital leverage paves the way for sustainable carbon market

An international conference in Ho Chi Minh City on May 10 explored legal and digital solutions to build a sustainable carbon market and support Vietnam's net-zero emissions target by 2050.

Clear legal recognition of carbon as a tradable asset – complete with ownership rights, transfer mechanisms, and legal protection – along with the establishment of a national registry and certification system, is critical to the development of a robust carbon market in Vietnam.

This was one of several key recommendations presented by experts at the conference.

The event brought together a wide range of scholars and professionals from Vietnam and abroad, including representatives from the United Nations, Russia, the United States, Canada, the European Union, China, Thailand, Indonesia, Australia, and over 20 national agencies overseeing carbon credits.

Luu Thi Thanh Mau (in green), CEO of Phuc Khang Corporation, shared her insights at the conference

These participants emphasised that the development of a national-level certification and registration system would reduce verification costs while enhancing transparency and authenticity in carbon trading.

The central theme of the conference revolved around proposals and recommendations to craft and refine the legal framework underpinning the carbon market development.

Experts agreed that only with a solid legal infrastructure can the carbon marketbecome an effective instrument to help Vietnam meet its net-zero emissions target by 2050.

“As a rapidly developing economy, Vietnam faces considerable challenges in crafting a legal framework that aligns with its international commitments while ensuring economic growth and environmental sustainability,” stated a research paper co-authored by scholars from James Cook University (Australia) and Ho Chi Minh City University of Law.

Vietnam has gradually laid the groundwork for its carbon market with key legal documents.

However, to ensure the market's effectiveness and integrity, the legal framework requires further development focused on actionable, specific solutions.

“Enhancing the legal framework for the carbon market will help control emissions and open up major investment opportunities for green investors and emerging enterprises engaged in certified emission reduction projects,” said Luu Thi Thanh Mau, CEO of Phuc Khang Corporation, a keynote speaker.

The workshop featured domestic and international scholars and experts

Dr. Meng Tu from Chongqing University of Technology and Dr. Vo Nguyen Hoang Phuc from the Institute of Intellectual Property, Startups and Innovation, and a lecturer at Ho Chi Minh City University of Law, shared a common view that policies under the Belt and Road Initiative (BRI), combined with digital technologies, especially AI and blockchain, can play a transformative role in supporting carbon market development and environmental protection.

Dr. Meng Tu from Chongqing University of Technology gave comments at the conference

According to the joint research team from James Cook University and Ho Chi Minh City University of Law, Vietnam's legal framework must strike a balance between regulatory approaches that ensure both environmental effectiveness and economic considerations.

One particularly significant recommendation was the establishment of a national mechanism for certifying, registering, and storing carbon credits. This would help verify data accuracy, reduce ownership risks, and facilitate transparent, safe, and efficient trading.

“Incorporating digital solutions and building a national carbon credit data infrastructure will reduce verification and transaction costs. Vietnam should consider developing dedicated electronic trading platforms or integrating carbon credits into existing exchanges to foster a liquid and competitive market,” suggested Luu Thi Thanh Mau.

The conference marked an important milestone in aggregating academic insights, global experience, and the voices of business leaders, helping to establish a solid foundation for Vietnam's carbon market.

Achieving the net-zero emissions target by 2050 is regarded not only an environmental responsibility and a national obligation, but also a strategic opportunity to foster sustainable investment and green growth.

VIR