The carbon market and the organization and development of the current carbon market

Abstract

The Law on Environmental Protection 2020, effective from January 1st, 2022, has specified the development of the carbon credit market in the law, which is considered an effective economic tool. The construction and development of carbon market regulations are an irreversible trend in the general development of the international community. However, the problem is the formation of a transparent, harmonized domestic and international carbon market, without putting too much pressure on businesses, making the most of all the resources that Vietnam has, while ensuring that the development of the carbon market must be associated with response to climate change, towards a low-carbon economy, which requires Vietnam to build a strict legal system throughout a stable process and effectively enforce it. In the process of building a low-carbon economy, from international commitments, Vietnam has affirmed that through the available resources, Vietnam will reduce greenhouse gas emissions while clearly identifying key areas where we can focus on reducing emissions. Therefore, in order to reduce greenhouse gas emissions and develop the carbon market associated with the goal of climate change minimization, aiming to build a low-carbon economy, the domestic carbon market must be built based on a perfect mechanism that can be practically applied in the development trend of society. The article clarifies the issues related to the carbon market, the organization and implementation of the current carbon market, and at the same time, the authors study international experience to propose directions to improve the organization and development of the domestic carbon market.