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Business trends

Vietnam crafting carbon market to make polluters pay

Climate fight to include cap-and-trade and controversial emissions offsets

Vietnam is attempting to tackle carbon emissions even as its manufacturing capacity becomes more important to the global economy.    © AFP/Jiji

HO CHI MINH CITY -- Vietnam is taking a page from California and the EU to craft a landmark cap-and-trade program that will cover major emitters from Panasonic to Nestle in a country that has become one of the world's most important manufacturing hubs.

The government now is deciding on the size of the caps it will allow for companies' greenhouse gas emissions, which have risen as supply chains relocate to Vietnam and the country builds more coal and gas plants, and the penalties for those who exceed them. But environmentalists warn that letting companies trade the allowances -- and eventually buy carbon credits -- will only enable pollution.

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