Greenhouse gas emissions have now become a new potential commodity to promote sustainable development and reduce negative impacts on the environment.
DEFINITION
According to the OECD, a Carbon Market is a place where carbon exchanges and trades take place between countries or organizations to meet their greenhouse gas emission limits under the Kyoto Protocol or other agreements. In addition, the term ‘Carbon Market’ comes from the fact that Carbon Dioxide (CO2) accounts for the majority of greenhouse gases.
Carbon Trading, also known as Carbon Emission Trading: is the buying and selling of Carbon credits that allow a company or organization to emit a certain amount of CO2. In particular, emissions trading (cap and trade) allows the sale of emission credits between businesses.
TYPES OF CACBON MARKETS
Mandatory Carbon Market: for countries or businesses that have accepted and adopted emission limits established in the United Nations Convention on Climate Change, legally authorized to offset their emissions (Ortega 2021).
Voluntary Carbon Market: allows countries or businesses on a voluntary basis to participate in offsetting emissions.
CACBON VALUATION
Carbon prices are not usually fixed and can vary depending on project type, project provider and geographic location. In addition, CO2 emissions, credit issuance and shipping times also affect prices in this market. According to Carbon Credit Capital 2021, the current price of Carbon is $34.99. However, for the voluntary carbon market, prices tend to be cheaper than the mandatory carbon market (between $10-$30/ton CO2).
RELATIONSHIP WITH RENEWABLE ENERGY INDUSTRY
- Participating in the Carbon market is a valuable opportunity for industries to exercise responsibility towards the environment and society. Above all, this is also considered a step towards sustainable development, a global trend, especially for Vietnam’s boiler industry. Emission balance should be focused by boiler enterprises and viewed as a mission to limit negative impacts on the environment. To accomplish this mission, carbon credit is the tool and Vietnam Zero Waste is the solution.
THE ROLE OF VIETNAM ZERO WASTE
- With the role of providing clean energy from converting agro-forestry-industrial waste and waste into an efficient and friendly fuel source, Zero Waste is always aiming for a sustainable future and at the same time. bring good value to customers and the community. Therefore, one of the products that Zero Waste provides customers is Carbon credits, helping customers achieve their emission reduction goals. Not only that, we can also improve economic efficiency, contributing to promoting a future of sustainable development for society and the country.
