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November 2016 and has submitted the first NDC to the UN-FCCC.  The second NDC has just been approved by the PM and subsequently submitted to the UNFCCC on 24 July 2020, strengthening Vietnam’s 2030 targets. According to the 2nd NDC, by 2030 Vietnam will reduce 9% of its total greenhouse gas emissions compared to the BAU (unconditional) scenario, equivalent to 83.9 million tons of CO2eq, using its domestic resources. Vietnam’s contribution can be increased up to 27 percent (equivalent to 250.8 million tons of CO2eq) with international support through bilateral, mul-tilateral cooperation and implementation of mechanisms under the Paris Agreement in the conditional scenario, including Article 6.

Vietnam has expressed an interest to implement CPIs to support the transition to a more efficient, low-carbon economy and meet the objectives adopted in the country’s NDC. In the  Vietnam Partnership for Market Readiness project, an analy-sis of the use of possible  Carbon Pricing Instrument (CPI) options in Vietnam in different sectors has been carried out, with the objective to develop roadmaps and action plans to help Vietnam decide on, design and implement the most appropriate CPIs given its national context.

The Consultant team from  RCEE-NIRAS (Viet Nam) and NIRAS A/S have assessed the relevant context for CPIs in Vietnam in general, and the steel sector in particular. This includes the international context of the Paris Agreement and Vietnam’s Nationally De-termined Contribution (NDC) as well as the national legislative, institutional and technical capacity con-text. Based on that context, The Consultant subsequently assesses Vietnam’s readiness and needs for implementing CPIs, analysing relevant international experience with CPIs in the steel sector, identifying lessons learned that could be relevant for the decision-making on, and the development and implementation of, CPIs in Vietnam.

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