Carbon pricing insights from Vietnam

A relatively low but increasing carbon price could play an important role in helping Vietnam meet its emission reduction targets, Thang Nam Do and Paul Burke write.

Reducing greenhouse gas emissions is a matter of national interest for Vietnam, one of the most vulnerable countries to global climate change. Serious local air pollution, particularly in large cities, has also increased the case for effective emission reduction policies.

A revised Law on Environmental Protection, which will take effect on 1 January 2022, legalises carbon pricing in the form of an emissions trading scheme (ETS) for greenhouse gases. A carbon tax could also be developed under the overall framework provided by this law.

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