Support for developing Vietnam’s Implementation Support Plan under the Partnership for Market Implementation

Recent years have seen the continued uptake of carbon pricing instruments (CPI) as an important tool to reduced greenhouse gas emissions. In 2022 Vietnam confirmed that it would implement two CPIs as key policy measures to meet its nationally determined contribution target. A national crediting mechanism (NCP), initially focused on generating carbon credits from the solid waste sector, would be established together with a new emissions trading system (ETS), covering the power, cement and steel sectors. To support the development of this ambitious program, Vietnam was selected to submit an implementation support plan (ISP) to the World Bank's Partnership for Market Implementation (PMI).The PMI is the World Bank's flagship technical assistance program for CPIs, aiming to support 30 developing countries to implement carbon pricing policies and programs by 2025.

Working together with the Vietnam-based Centre for Energy and Green Growth Research (CEGR), adelphi assisted the Government of Vietnam to prepare its ISP for submission to the PMI. The ISP sets out a comprehensive, five-year work program for establishing a domestic carbon market in Vietnam. Preparing the ISP involved a comprehensive stocktake of existing CPI frameworks and activities in Vietnam - including relevant laws and technical assistance programs - to identify the main gaps to be filled. From this, adelphi and CEGR worked closely with relevant ministries, led by the Ministry of Natural Resources and Environment (MONRE), to define a series of activities to implement the government's carbon pricing program. Aside from the activites focused on establishing the NCP and ETS, the PMI will also support wider infrastructure and policy frameworks necessary for carbon pricing to succeed in Vietnam, such building an emissions registry, preparing for a carbon trading platorm, and developing a robust monitoring, reporting and verification (MRV) system for ETS sectors. The ISP was submitted to the PMI in June 2022.