Prime Minister Nguyen Tan Dung has signed off on a carbon market plan that includes setting up a pilot cap-and-trade scheme in Vietnam’s steel sector as well as credited NAMAs, news agency VNS reported on Wednesday.

The $3.6 million plan, developed under the World Bank’s Partnership for Market Readiness (PMR), is part of Vietnam’s strategy to meet its target of keeping GHG emissions 8% below BAU levels throughout the 2020s.

Under the plan, Vietnam will build GHG emission databases, develop an MRV system and undertake capacity-building among policy makers to help develop market-based policies to cut emissions.

It plans to introduce NAMAs in the steel and waste sectors from 2018 that will generate carbon credits, and launch an emissions trading scheme for the steel sector after 2020, according to documents on the PMR website.

Vietnam’s ambition is to participate in the international carbon market in the long term.

The Ministry of Natural Resources and Environment will be in charge of implementing the programme, but other agencies will also be involved.

The World Bank will contribute $3 million towards the implementation of the plan, with the Vietnamese government paying the rest.

By Stian Reklev – stian@carbon-pulse.com

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