THE ROLE OF THE CARBON MARKET IN SUPPORTING NDC IMPLEMENTATION - OPPORTUNITIES AND CHALLENGES WHEN IMPLEMENTATION IN VIET NAM

Abstract

The carbon market is considered as one of the most important tools in reducing greenhouse gas emissions. Through the carbon market, stakeholders can effectively and economically reduce greenhouse gas emissions. In the first phase of the Kyoto Protocol (2008-2012), the carbon market played an important role in meeting developed countries’ commitments to reduce greenhouse gas emissions. Currently, Viet Nam and 101 Parties to the United Nations Framework Convention on Climate Change have identyfied that they will adopt a market mechanism, including a carbon market to achieve the goal of reducing emissions. GHGs contribute to implementation Nationally determined contributions (NDC). The paper analyzes the role of the carbon market in supporting the implementation of the commitments to reduce greenhouse gas emissions under the Kyoto Protocol and under the Nationally Determined Contribution in the Paris Agreement, opportunities, challenges when implementing domestic carbon market in support of implementation Nationally determined contribution in Vietnam. The research results show that the carbon market plays an important role and has a positive impact on national, regional and global GHG emission reduction activities as well as being an effective tool in supporting NDC implementation.