CT Group recently unveiled Vietnam’s inaugural carbon credit trading platform under the ASEAN joint stock company (CCTPA), marking a significant first for the nation as it actively adapts to evolving international environmental trade frameworks, with eyes set on a low-carbon, economically robust growth trajectory.
From October 2023, the European Union’s 27 member nations initiated a pilot program imposing carbon taxation on all exports destined for their markets, utilizing the Carbon Border Adjustment Mechanism (CBAM).
With the US on track to enforce similar carbon taxation on imports by 2024 and numerous other nations across the Americas and Asia likely to adopt this trend, the global trade arena is shifting towards a green taxation model. This paradigm shift necessitates a swift and effective adaptation by Vietnamese enterprises to meet burgeoning green standards and fortify long-term competitiveness.
Perceived as an efficacious tool for diminishing environmental degradation, promoting sustainable advancement, and adhering to international norms, the carbon market has yet to gain substantial traction in Vietnam due to its nascent stage. The essential requirement for a consulting entity to shepherd the carbon credit certification and registration process has birthed the CCTPA.
This freshly minted company is set to serve as a comprehensive advisory conduit for Vietnamese businesses, organizations, and individuals, providing meticulous guidance on the development of carbon credit projects, along with the registration, verification, exchange, compensation, and securing of carbon credit loans. It will also offer insights into navigating regional and global carbon tax landscapes.
Venturing into technological innovation, CCTPA is exploring the incorporation of Blockchain and cryptocurrency solutions within the carbon market. This endeavor aims to foster secure and transparent transactions, engendering trust among market participants and positioning CCTPA as a distinctive and avant-garde player in this realm.
Tăng Thế Cường, Director of the Climate Change Department of the Ministry of Natural Resources and Environment, commended this initiative, aligning it with Vietnam’s ambitious net-zero commitment pronounced at COP26 in 2021. He accentuated that a well-constructed carbon market is instrumental in attaining greenhouse gas emission reduction targets at a reduced cost burden for businesses and society, while simultaneously propelling low-emission technology development.
CCTPA has forged collaboration agreements with a spectrum of entities including the Central Clean Water and Environment Association of Vietnam, the Institute for Communication and Development Research (RED), and various research, financial, and international inspection bodies.
This collaborative endeavor aims to pool resources for the creation of groundbreaking solutions and green technology applications aimed at reducing carbon emissions, orchestrating green transition agendas towards the Net Zero aspiration.
Through these concerted efforts, CCTPA is not merely championing environmental stewardship but also propelling Vietnam towards a sustainable, prosperous future aligned with global green economy trends.
BUSINESS GENERAL | India Addresses EU Carbon Tax: Steel Trade at Climate Crossroads
