Gov Tasks MOIT to Lead Dialogue on EU’s CBAM Implementation

The Government has assigned the Ministry of Industry and Trade (MOIT) to coordinate and proactively engage in dialogue with partners during the implementation of tasks regarding the EU’s Carbon Border Adjustment Mechanism.

The Government Office recently issued Notice No. 6082/VPCP-NN to the Ministries of Industry and Trade (MOIT), Natural Resources and Environment (MONRE), Public Security, Justice, Finance, Planning and Investment, Transport, Agriculture and Rural Development, Foreign Affairs, and the State Bank of Vietnam regarding the deployment of tasks related to the European Union’s Carbon Border Adjustment Mechanism (CBAM).

MOIT Appointed as Focal Agency According to the document, the Government assigns MOIT as the focal agency to preside over and coordinate with relevant ministries and agencies to build and deploy effective measures to respond to CBAM, including the development and implementation of the “Scheme on Responding to CBAM.”

International Dialogue and Cooperation Parallel to domestic preparations, MOIT will preside over and coordinate with the Ministry of Foreign Affairs, MONRE, and the Ministry of Agriculture and Rural Development to implement tasks related to negotiation and international cooperation.

• Proactive Dialogue: Emphasizing continued proactive and positive dialogue with the EU and the United Kingdom within frameworks like the WTO, EVFTA, and UKVFTA to clarify the consistency of CBAM with international commitments.
• Scope Expansion: Studying the possibility of CBAM’s scope expansion, particularly regarding agricultural and forestry products.
• Support Mechanisms: Researching appropriate support and exemption mechanisms for Vietnam.
• Global Monitoring: Continuing to monitor developments in partner countries like the United States and Canada regarding CBAM application.

MOIT is also tasked with researching and negotiating to join bilateral and multilateral international forums/frameworks to enhance cooperation and international recognition of Vietnam’s policies and regulations related to carbon pricing.

Learning from Global Experience The Government tasked MOIT to coordinate with the Ministry of Foreign Affairs to study response solutions from other countries impacted by CBAM, such as Indonesia, South Africa, and Colombia. Simultaneously, Vietnam will strengthen consultation and coordinate positions with affected developing nations at multilateral forums like the WTO and ASEAN.

Enterprise Support and Training MOIT will lead the dissemination and propaganda solution group:

• Training: Organizing training courses for agencies, associations, and enterprises on CBAM, including performing Greenhouse Gas (GHG) inventory in accordance with the Mechanism’s requirements.
• State Budget: Funding for these activities will be arranged according to the Law on State Budget.
• Adaptation: coordinating with Industry Associations to support enterprises in adapting to CBAM requirements.

Roles of Other Ministries

• MONRE (Carbon Market): Preside over researching the construction and application of policies related to carbon pricing consistent with international practices. This includes developing and operating the domestic carbon market and supporting enterprises in purchasing carbon credits to offset/reduce CBAM certificate costs when exporting to the EU.
• State Bank of Vietnam (Green Credit): Deploy green credit solutions, including credit for projects meeting CBAM requirements under the Green Classification List.
• Ministry of Justice: Research plans to use dispute resolution mechanisms of the WTO, EVFTA, and UKVFTA to minimize CBAM’s impacts and assess Vietnam’s legal strengths and weaknesses.