The decision, made on the basis of additionality, affects nearly a third of all credits currently traded on the voluntary carbon market. Certifiers cautioned against a blanket methodology-level approach.
The new decree is seen as the latter of two policy moves needed to jumpstart the country’s clean energy market. New funding is already flowing, but concerns remain as to whether Vietnam’s power grid can handle more renewables.
A new whitepaper funded by the Asia-focused lender proposes retrofitting existing coal assets with viable clean technologies and retaining their transmission infrastructure to improve the bankability of the region’s early phase-out deals.