Vietnam needs an additional $368 billion to cope with climate change and reduce carbon emissions by 2040, Deputy Minister of Foreign Affairs Nguyen Minh Vu has said.

Addressing the “Developing a Carbon Market: International Experience and Policy Implication for Vietnam” seminar organized by the Ministries of Foreign Affairs and Natural Resources and Environment and the Organization for Economic Cooperation and Development (OECD) on November 23, Deputy Minister Vu said that developing the carbon market is not only an increasingly common trend but also an essential requirement for each country.

“Among the tools for green transition, developing a carbon market is one of the most important,” he added. “At COP26, Vietnam committed to net-zero emissions by 2050, and at COP28, which will take place in the UAE next year, it will continue making positive contributions to advance cooperation to realize such a commitment.”

The world is rapidly moving towards green development, he went on, promoting green transition as a new driving force for fast and sustainable growth. Green standards are being shaped and accelerated for implementation in terms of trade and international investment, with new criteria on carbon emissions reductions, sustainable development, labor, and the environment.

Along with that, bilateral and multilateral partnerships and initiatives relating to green sectors are also being strongly promoted.

“This is the key opportunity, the critical moment for Vietnam to achieve the goal of green transformation and continuously increase its position in global green value chains,” the Deputy Minister said. “If Vietnam fails to seize the trend, it will not only be unable to reach sustainability goals but will also face difficulties in accessing strict markets that are increasingly requiring green standards.”

Additionally, he said, without support from the international community and developed partners, developing countries like Vietnam will encounter many challenges in the process.