The Potential of Carbon Credits Market in Vietnam Electricity Market: Research and Proposal

This paper researches and evaluates the prospects of the carbon credit market in the context of the electricity market in Vietnam, a rapidly developing country with increasing energy demand. Vietnam is facing the challenge of simultaneously powering economic growth and reducing greenhouse gas emissions into the environment. The Vietnam Electricity Market has traditionally relied on a mix of fossil fuels, with nearly 50% capacity of coal and gas, to power its economic growth. However, this trajectory has raised environmental alarms, prompting the government to explore innovative solutions to balance economic expansion with environmental stewardship. Carbon credits, a globally recognized tool for incentivizing emission reductions, offer a strategic mechanism for Vietnam to transition towards a low-carbon and resilient energy landscape. The paper also highlights various challenges that must be addressed, including the imperative to establish robust legal frameworks, implement effective measurement and verification methods, and cultivate awareness and trust among stakeholders.