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PM approves plan for $3.6m carbon market

2015-10-29 09:12:46

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HA NOI (VNS) — Prime Minister Nguyen Tan Dung has approved a project worth US$3.6 million to help Viet Nam to build its own carbon market following an application from the Ministry of Planning and Investment.
 
Created under the Kyoto Protocol, the carbon market enables the trading of carbon emission allowances between developed countries, which have higher levels of greenhouse gas emissions than permitted, and developing countries, which have lower levels than permitted. The ostensible purpose of this initiative is to encourage countries and companies to limit their carbon dioxide emissions.
 
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 Viet Nam 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.— VNS
 
Source: Vietnamnews.