INTRODUCTION TO BASIC ECONOMIC TOOLS FOR MANAGING GREENHOUSE GASES IN VIET NAM

Abstract

The paper introduces some economic tools to manage greenhouse gas emissions including tools for generating revenue and tools for market creation. For revenue generating instruments, environmental protection taxes currently apply to the production and importation of certain goods considered harmful to the environment, especially oil and coal. The draft Law on Environmental Protection Tax is proposing to increase the tax rates on gasoline, oil, grease and HCFCs and taxable nylon bags. For environmental protection fees, Vietnam already has fees for wastewater and extraction of assets, but fees for emissions have not detailed guidance on procedures and methods of emissions registration and inventory. For market creation tools, in July 2017, Vietnam had 255 clean development mechanism (CDM) projects registered with the total GHG emissions reduction of 19,653,872 tons of CO₂. In addition, 14 JCM projects are registered with the potential to reduce greenhouse gas emissions of 15,996 tCO₂ equivalent per year.