In response to the ongoing climate emergency, countries around the world, including Vietnam, are actively implementing activities to reduce greenhouse gas emissions and develop carbon markets.

Vietnam is also seen as one of the countries with great potential for supplying carbon credits. It is estimated that Vietnam's forestry sector alone can bring about 57 million carbon credits each year, equivalent to 52 million tons of CO2, which can be sold to international organizations.

With these potentials, many foreign enterprises are looking for opportunities to invest in and provide solutions to develop the carbon credit market in Vietnam.

At the investment connection meeting organized by Tap chi Kinh te Viet Nam/VnEconomy/Vietnam Economic Times in collaboration with the Invest Global, on September 9 in Hanoi, a representative of ReNew Energy Global - a decarbonization solution provider based in India expressed the desire to seek investment and cooperation opportunities to develop the carbon credit market in Vietnam.

Learn solutions from India

ReNew Energy Global is a company that provides decarbonization solutions through a combination of green hydrogen, data-driven solutions, storage, production and carbon markets.

Therefore, at the meeting, the company representative proposed to apply for a project under one-stop model based on the feasibility and practical effectiveness that the company has applied so that Vietnam can refer to it in developing the carbon credit market. The project is built on 4 main solutions.

The first solution is to avoid carbon emissions by building energy projects. ReNew Energy Global recorded the sale of 15 million carbon credits under CDM, VERRA & GS standards (equivalent to 12 per cent of the global market share) in 2021.

The second solution is to reduce carbon emissions through the use of household appliances that use clean fuel sources when cooking and filtering water.

According to ReNew Energy Global, improved cooking stoves can be up to 38 per cent more efficient than traditional stoves, reducing solid fuel use by 60 per cent, equivalent to 1.5 carbon credits.

Meanwhile, bio gas cookstoves increase efficiency by up to 60 per cent compared to traditional stoves, reducing the use of solid fuel by 100 per cent, equivalent to 3-3.5 carbon credits.

Solar cookstoves increase efficiency by up to 65 per cent compared to traditional cookers, reducing solid fuel use by 100 per cent, equivalent to 3 carbon credits.

The most effective is the bio ethanol cookstoves, which increase efficiency by up to 65 per cent compared to traditional cookers, reducing solid fuel use by 100 per cent, equivalent to 5 carbon credits.

The third solution is nature based. Specifically, in agro-forestry, plantation of trees on borders or intercropping or block plantations in agricultural farms and excess/degraded land parcels of farmers local community to ensure additional income for the community.

In afforestation/reforestation, plantation in degraded/deforested areas with support from community, forest department and local NGOs.

In improved forest management, Improved Forest Management (IFM) and Assisted Natural Regeneration supports in helping forests lock and further sequester carbon by aiding their growth.

In wetlands, ensuring sustainable management of existing mangroves and ensuring extension of plantations to degraded areas.

On the new mechanism to reduce greenhouse gas emissions from forests REDD+, protecting, conserving and managing existing forests along with sustainable development activities for local communities.

In agriculture practices, switching to the System of rice intensification (technique mulching, organic fertilizer, Vermi composting, No tilling, etc.)

The fourth solution is removal-tech based. ReNew’s Technology Based Interventions include: 

Biochar Carbon Removal: This removes carbon permanently from atmosphere by converting the carbon present in waste biomass (biogenic sources) into stable carbon (biochar) and use it in soil or non soil applications. 

Point source capture and storage: It focuses on capturing CO2 emissions from industrial sources, and separates CO2 from industrial emissions and store it permanently.

Direct air capture & storage: It uses chemical or physical processes to extract CO2 directly from the ambient air. The captured CO2 can then be sequestered in safe long term storage achieving CO2 removal and making it a negative emissions technology.

Enhanced rock weathering: It aims to accelerate the natural weathering by spreading finely ground silicate rock onto surfaces which speeds up chemical reactions between rocks, water, and air and removes CO2 from the atmosphere, permanently storing it in solid carbonate minerals or ocean alkalinity.

Five key factors to implement project

For a project to operate under the one-stop model, according to ReNew Energy Global, the participation of five components is required.

First is the investor. The investor has the role of providing the total investment according to the plan/model; Generating and selling credits as per schedule.

Second is the project developer, who will register carbon project and oversee all project development activity; Develop project meeting all standards; Constant engagement through monitoring and feedback from local partners

Third is the carbon coordinator/technical consultant. They will develop project description documents and meet all requirements/ standards independently; Monitor the projects and prepare reports.

Fourth is the implementation partners, who will coordinate and ensure implementation of all on ground activities as per project plan; Conduct all trainings and farmer engagement activities as per schedule.

Finally, the local community has the role of preparing lands, provide consent for carbon project; Conduct activities as per requirement of the project plant and monitoring standards.

ReNew Energy Global representative believes that Vietnam has great potential to develop the carbon credit market. "We are in the process of studying the actual conditions in Vietnam to provide finance and technology to help develop the carbon credit market in Vietnam," the representative emphasized.