Post by : Meena Ariff

Photo: Reuters

Vietnam has started a new plan called the Emissions Trading Scheme (ETS) to help fight pollution. This plan is in a test phase and will run until 2029. It focuses on three major industries that cause the most pollution: steel, cement, and thermal power.

In this plan, factories in these industries must now buy permission to release carbon dioxide (CO2), which is one of the gases causing climate change. Each company will get a certain number of emission permits. If they release more pollution than allowed, they must buy extra permits or credits from others.

These credits can also come from clean energy projects inside or outside of Vietnam. However, companies can only cover up to 30% of their extra pollution this way.

This pilot phase is important because it covers nearly half of Vietnam’s total carbon emissions. After 2029, more industries like transportation and commercial buildings will also be included.

Vietnam is doing this to reach its big goal of net-zero emissions by 2050. This means the country wants to balance the amount of carbon it releases with the amount it removes from the air.

The need for such a system is urgent because Vietnam’s pollution has increased a lot. In 2024, electricity made from coal went up by 18%, and steel production rose by 15%, which added more carbon to the air.

With this carbon trading system, Vietnam is taking a big step toward cleaner air and a healthier planet for future generations.