A project worth $3.6m to help Vietnam to build its own carbon market is approved

Prime Minister Nguyen Tan Dung has approved a project worth US$3.6 million to help Vietnam to build its own carbon market following an application from the Ministry of Planning and Investment.

The project, with $3 million funded by the World Bank and $600,000 from the Vietnamese Government, would help to set up a database of greenhouse gas emissions throughout the country; issue policies and State management tools related to the carbon market; and implement the Nationally Appropriate Mitigation Action (NAMA) to create carbon credits.

NAMA refers to a set of policies and actions that countries in the world undertake as part of a commitment to reduce greenhouse gas emissions. Carbon credit is known as a permit that allows a country or organisation to produce a certain amount of carbon emissions that can be traded if the full allowance is not used.

The project is also expected to give assistance to Vietnam in building a roadmap to participate in the global carbon market.

Under the project, over $1.2 million will be allocated to the Ministry of Natural Resources and Environment; $760,000 to the Ministry of Industry and Trade; $700,000 to the Ministry of Construction; $140,000 to the Ministry Of Planning And Investment; and $140,000 to the Ministry of Finance.

The environment ministry has been assigned to co-operate with relevant agencies to run the 36-month project.

Viet Nam ratified the Kyoto Protocol to the United Nations Convention on Climate Change in 2002.