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Vietnam dwells on carbon certificates to adjust with EU’s carbon mechanism

In a wake of EU's recently passed carbon levy, Vietnam has geared up discussions on carbon certificates to exporters and retailers.

As per the EU’s Carbon Border Adjustment Mechanism (CBAM) endorsed by the European Parliament, it will "put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries."

As per the new mechanism, the bloc needs exporters to report their commodities' carbon footprints. It includes commodities with higher carbon footprints. With this, Vietnamese businesses are considering reducing their own carbon footprints during production.

According to a local report, Andrew Wyatt, deputy head of the IUCN in Vietnam, urged the government to come up with policies to monitor and issue carbon certificates to Vietnamese exporters and producers by 2025. Industry experts are of view that the new mechanism could impact Vietnamese major exporters and retailers. They pointed towards producers and exporters of products with higher carbon footprints.

Meanwhile, Vietnam is also considering the new carbon tax to reduce their carbon emissions. The country plans to achieve net zero by 2050.


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