Ministry of Finance issues plan to develop carbon market

Ministry of Finance issues plan to develop carbon market

The Ministry of Finance issued a plan in late May to implement the tasks assigned by the prime minister to establish and develop a carbon market in Vietnam.

The Ministry of Finance has issued a plan to implement tasks for developing the carbon market

According to the plan, the Legal Department has been assigned to lead the development of a draft decree on a domestic carbon exchange platform, based on the Law on Environmental Protection and the Law on Promulgation of Legal Normative Documents. If there are matters not yet regulated by law, the department will report to the competent authority.

The department is also responsible for reviewing the provisions of the Law on Environmental Protection and regulations on the functions and duties of ministries, agencies, and organisations to establish regulations on tasks related to the carbon market. The department will also organise training, communication, and dissemination of knowledge about the carbon exchange platform.

The State Securities Commission is tasked with leading the review and proposing amendments and supplements to regulations on the functions and duties of the Vietnam Stock Exchange (VNX) and the Vietnam Securities Depository and Clearing Corporation (VSDC) to establish a comprehensive legal framework for providing carbon exchange platform services.

The MoF also assigned VSDC and VNX to lead the development of a detailed plan for establishing the carbon exchange platform in accordance with the requirements of the Ministry of Agriculture and Environment.

At the same time, they will develop operational requirements for organising, managing, and operating the carbon market, as well as technical conditions and standards for trading, depository, and payment systems for greenhouse gas (GHG) emission quotas and carbon credits. They will also establish regulations, processes, and ensure organisational and infrastructural conditions to provide domestic carbon exchange platform services.

Under the plan, the MoF will assign units to review and propose amendments and supplements to regulations on taxes, fees, charges, and service prices related to the carbon market and the trading/transfer of GHG emission quotas and carbon credits during the amendment and supplementation of the Law on Taxes, Fees, and Charges. They will also study the management and use of revenue from auctioning emission quotas.

The Department of Tax, Fee, and Charge Policy Management and Supervision has been tasked with leading the review and proposing amendments and supplements to regulations on taxes, fees, and charges related to the carbon market and the trading/transfer of greenhouse gas (GHG) emission quotas and carbon credits.

The Legal Department will study and evaluate whether service prices related to the carbon exchange platform should be state-regulated or determined by agreement, and submit findings to the Price Management Department. The Price Management Department will study and recommend amendments and supplements to the list of goods and services subject to state pricing issued under the Law on Prices. The Department of State Budget will lead the study on the management and use of revenue from auctioning emission quotas.

The MoF requested that heads of units under the ministry urgently implement their assigned tasks, ensuring compliance with the designated timelines.

VIR