By
Lan Do
Fri, October 11, 2024 | 5:13 pm GMT+7
Opportunities and challenges presented by the Carbon Border Adjustment Mechanism (CBAM) and a carbon market were discussed at a training conference held in Ho Chi Minh City on Friday.
The conference, featuring experts from business, legal, and research communities, was co-organized by the HCMC Investment and Trade Promotion Center and EuroCham Vietnam.
Jean-Jacques Bouflet, vice chairman of EuroCham Vietnam, speaks at a training conference on Carbon Border Adjustment Mechanism and Carbon Market, Ho Chi Minh City, October 11, 2024. Photo courtesy of EuroCham.
Addressing the conference, Jean-Jacques Bouflet, vice chairman of EuroCham Vietnam, said that the CBAM and carbon market were two vital elements of Vietnam’s green transition that would contribute to the nation’s commitment to achieve net zero emissions by 2050.
“As many of you know, the upcoming implementation of CBAM on January 1, 2026 will have significant implications for Vietnamese exporters, especially in carbon-intensive sectors such as steel, cement, fertilizers, and aluminium,” he said.
A panel of experts will offer valuable insights and strategies on how to effectively prepare for and comply with CBAM regulations, ensuring that Vietnam remains competitive in the global export market, he added.
He noted that Vietnam has already made progress, with over 300 registered projects and the voluntary trading of more than 40 million carbon credits globally.
“However, establishing a domestic carbon credit market remains a key priority and will require a collective effort. While the government is advancing plans for a pilot carbon exchange platform in 2025, there remain challenges in developing a comprehensive legal framework and raising awareness across industries,” he added.
The training conference is a timely opportunity to explore the practical aspects of these mechanisms, drawing on international best practices, examining specific approaches such as rooftop solar projects, and learning valuable lessons from China’s carbon credit system, which could serve as important models for Vietnam’s development, he said.
Bouflet said it was encouraging to see HCMC take the lead in promoting carbon trading and attracting investment in renewable energy and green technologies as part of collective efforts to develop a domestic carbon market and advance the national CBAM strategy.
“Notably, Resolution 98 [adopted by the National Assembly on granting HCMC a number of special mechanisms] stands out as a key initiative, establishing financial mechanisms for emissions reduction and setting standards for other regions in Vietnam to follow.”
Bouflet noted EuroCham remained committed to providing a platform for dialogue and collaboration between European and Vietnamese businesses, policymakers, and international organizations.
“Through our advocacy efforts, we continue to recommend international standards on green transformation to the government while helping our members align with key regulations under the EU Green Deal for a sustainable business environment in Vietnam.”
He noted that the Eurocham’s flagship event, the Green Economy Forum and Exhibition (GEFE) 2024 would be held October 21-23 at the Thiskyhall Sala Convention Center in HCMC.
At this important event, “we will dive deeper into the strategies and solutions shaping Vietnam’s green transformation,” he said.
He stressed that Vietnam played a leading role as the EU’s most significant trade partner within ASEAN
“Our economic ties continue to thrive, with the European Union serving as Vietnam’s third-largest export market and a key investor. The EU-Vietnam Free Trade Agreement (EVFTA) has brought tremendous growth, with Vietnam’s exports to the EU now surpassing $200 billion in just four years, boasting annual growth rates of 12-15%.
