On 11 October, EuroCham and ITPC co-hosted the CBAM Carbon Market Training Conference in Ho Chi Minh City. The event featured prominent speakers and attracted attendees from various sectors, including government officials, business leaders, and sustainability experts.
The conference was honoured by the participation of Mr. Jean-Jacques Bouflet, EuroCham Vice-Chairman for Advocacy, who opened the event by highlighting the EU-Vietnam partnership on sustainability and Ho Chi Minh City’s leadership in carbon trading. He also discussed the significance of developing Vietnam’s domestic carbon market and the high anticipation for EuroCham’s upcoming GEFE 2024 event.
Following his remarks, attendees gained valuable insights from experts covering a wide range of topics.
Key Presentations:
- Mr. Marlon Apañada, APAC Lead of World Resource Institute, discussed Vietnam’s updated Nationally Determined Contribution (NDC), aiming to reduce greenhouse gas emissions by 15.8%. He highlighted Vietnam’s carbon credit projects under international standards, which attract foreign investment but face challenges such as inadequate data for Emissions Trading Systems (ETS) and market volatility.
- Mr. Phat Nguyen, Head of Legal, Compliance and Government Affairs at Asia Clean Capital Vietnam, emphasized the role of blockchain technology in enhancing climate data accuracy, transparency, and accessibility. He cited the Vivo City solar energy project as an example of blockchain-based data storage, which boosts monitoring efficiency.
- Ms. Hue Nguyen, Project Director of KLINOVA, presented on how Vietnamese businesses are adapting to the EU’s Carbon Border Adjustment Mechanism (CBAM). She addressed emissions reporting challenges and advised companies on establishing emissions databases and mitigation strategies.
- Ms. Ngan Vu, Deputy Head of the Department of Planning and Finance, Co-Chair of the WTO Programme at FTU, focused on CBAM’s impact on Vietnam’s energy-intensive export sectors, such as steel, aluminium, and cement, while identifying opportunities for greener practices aligned with net-zero commitments.
In the afternoon session on carbon market fundamentals, several experts shared valuable insights:
- Ms. Nguyen Thi Hai Van, Senior Legal Director at Suntory PepsiCo Vietnam, discussed compliance challenges and the benefits of aligning with ESG regulations. She highlighted that many companies struggle with understanding carbon accounting, but compliance can offer a competitive advantage.
- Ms. Marieke Van Der Pijl, Secretary General of EuroCham, provided detailed guidance on CBAM implementation, emphasizing the importance of capacity building and practical experience. She noted that learning through trial and error is part of the adaptation process for businesses.
- Ms. Duong Thi Thuy Mai, a carbon market analyst from Veyt, presented on China’s ETS, covering its design, implementation, and future direction. She addressed China’s measures to manage allowance oversupply for renewable energy. She advised Vietnam to consider different regional economic conditions when developing its own ETS and to focus on pilot programs and capacity building to set national standards.
Panel discussion:
The conference concluded with an interactive panel discussion moderated by Mr.Giando Zapia, Chairman of the EuroCham Sustainable Finance Sector Committee.
Several key points were raised:
- Mr. Phat Nguyen discussed strategies for regulatory compliance, highlighting the challenges businesses face with GHG inventories and the importance of raising their voices to local authorities in favor of effective carbon trading and renewable energy initiatives.
- Ms. Marieke Van Der Pijl highlighted EuroCham’s role in shaping carbon trading policies, with two of its 20 sector committees dedicated to sustainability. She emphasized EuroCham’s proactive approach through ongoing dialogues, contributions to the Whitebook, and capacity building efforts, noting that the adaptation process is a continuous learning experience.
- Ms. Nguyen Thi Hai Van emphasized that aligning with ESG standards offers a competitive edge despite compliance challenges. She highlighted the value of adopting best practices from others and joining communities like EuroCham to reduce costs, and she underscored the need for capacity building, especially for SMEs with fewer resources.
- Mr. Erick Contreras, Co-chairman of the EuroCham Green Growth Sector Committee, emphasized the regulatory challenges businesses face in achieving carbon neutrality, despite efforts in green energy, joint ventures, and wind power investments. He also highlighted the need to qualify local logistics providers and shared successes in renewable energy practices.
The CBAM Carbon Market Training Conference provided a valuable platform for stakeholders to exchange ideas and solutions, helping Vietnam navigate its transition towards a more sustainable, green economy.
