Market Assessment

Making Carbon Markets Work for the Poor, Vietnam, 2009

    This study examines the feasibility of developing Voluntary Carbon Markets (VCM) capable of benefiting the poor in Vietnam. The study seeks to understand the status and potential of the VCM in Vietnam, to identify key barriers to development. The study makes specific recommendations on how the VCM could provide wider social and environmental benefits and includes an Action Plan for stimulating the development of pro-poor voluntary carbon markets. The analysis focuses in particular on four sectors:

    • Smaller scale renewable energy projects
    • Small-scale methane
    • Community Energy Efficiency projects in industrial sectors important to the poor
    • Forestry sector interventions

    The first part of the analysis provides an overview of the Clean Development Mechanism, which shares a broadly similar accreditation process to voluntary carbon markets, and for which a number of projects in Vietnam have already been accredited. The following sections outline the global and national voluntary carbon marketplaces, and the barriers to development of voluntary carbon markets in Vietnam. The final section provides conclusions and recommendations.

    Summary of results
    • The Clean Development Mechanism has not (at the time of writing) gained real traction in Vietnam or delivered poverty reduction
    • VCM present an opportunity for poverty reduction in Vietnam
    • Potential VCM funding for poverty reduction is, however, uncertain and unstable
    • Acquiring Voluntary Emissions Reduction accreditation will be imperative for project developers
    • VCM projects will encounter many of the same obstacles that are being faced by CDM projects
    • VCM projects also face additional obstacles (e.g. access to finance, given price instability of Voluntary Emissions Reduction certificates)
    • Donors can have a role in helping to overcome these obstacles and support the development of the VCM in Vietnam
    • The distinction between the voluntary and compliance markets is blurred

    Associated Activities and Documents
    Synthesis Documents
    »Making Markets Work (for the Poor)/M4P: Some key links, 2011