Vietnam HCMC’s Carbon Credit Market Valued at $790M
The carbon credit market in Vietnam’s southern metropolis of Ho Chi Minh City is valued at $790 million, Deputy General Director of Ho Chi Minh City Finance and Investment State-owned Company (HFIC) Nguyen Quang Thanh cited a study by the World Bank as saying.
Mr. Thanh gave the information at a discussion on carbon credits, which was held by the Ho Chi Minh City Union of Business Association (HUBA) on May 11.
Of the total estimated carbon credit market value, the energy-saving equipment project for buildings, with a total investment of around $405.1 million, is expected to help reduce about $12.3 million tons of CO2 emissions every ten years, equivalent to carbon credit value of about $206.9 million.
The rooftop solar power installation project, costing about $280 million, is set to reduce around 3.8 million tons of CO2 emissions every ten years, equal to carbon credit value of about $64.5 million. The LED light upgrading project, with a total capital of about $20.1 million, is expected to reduce 500,000 tons of CO2 emissions every ten years, equivalent to carbon credit value of about $7.4 million.
The $6.9-billion project to upgrade 8.1 million electric motorcycles is estimated to help reduce around 34.6 million tons of CO2 emissions every ten years, equivalent to carbon credit valued at over $579 million.
Vietnam is a potential carbon credit supplier as it has just become the first country in the East Asia Pacific region to receive a payment of over $51 million from the World Bank for emissions reduction efforts in six north-central localities. Vietnam plans to transfer 5.15 million forest carbon credits in 11 south-central and Central Highlands localities in 2022-2026, with a minimum price of $10 per ton.