Carbon market consistency required

As Vietnam moves closer to launching its carbon market, the transition is exposing the lack of consistent, high-quality emissions data needed to underpin it.

- By Hara Nguyen

At a forum on the issue held in Hanoi last week, experts noted that if properly designed, carbon credit mechanisms can reward pioneers in clean technology and efficient management.

“Each carbon credit reflects innovation, operational discipline, and a tangible economic asset that can be traded and monetised,” said Pham Nam Hung, a representative from the Department of Climate Change under the Ministry of Agriculture and Environment.

This reframing is critical as Vietnam accelerates its transition towards a low-carbon economy. Yet, measuring emissions accurately is a technical challenge. Without credible data, the entire system, from quota allocation to credit generation and trading, cannot function effectively.

In Vietnam, many significant emission sources still lack well-defined emission factors, creating substantial obstacles for enterprises attempting to conduct greenhouse gas (GHG) inventories. “Emissions accounting is the bedrock of the carbon market. It determines not only how much a company emits, but also how responsibilities and opportunities are distributed across sectors,” Hung added.