On Friday, Vietnam’s CT Group launched a subsidiary called the ASEAN Carbon Credit Exchange, which Vietnam Plus has reported, will be Vietnam’s first carbon exchange. Light on details as to how it would actually work, the publication outlines key drivers for its development, namely the EU’s Carbon Border Adjustment Mechanism (CBAM).
Ostensibly this is a welcome foot-forward in Vietnam’s ambitions to develop its own carbon market. The CBAM is an issue that Vietnam will have to deal with, particularly as one of the EU’s biggest sources of cement. That said, the lack of detail in the announcement leaves a lot of questions unanswered. How will it work? Where will carbon be saved in order to be resold? How much will it be sold for? To name just a few.