Climate change

Approval of the Proposal for the Establishment and Development of Vietnam's Carbon Market

04/04/2025

On January 24, 2025, Deputy Prime Minister Tran Hong Ha signed Decision No. 232/QĐ-TTg approving the Proposal for the Establishment and Development of Vietnam's Carbon Market. The overarching goal of the Proposal is to develop Vietnam's carbon market, facilitating greenhouse gas (GHG) emission reductions in alignment with the commitments under the Nationally Determined Contributions (NDC) at optimal costs. It aims to generate financial resources for emission reduction activities, promote green transition and low-emission technologies, enhance corporate competitiveness, develop a low-carbon economy, and move toward net-zero emissions by 2050. 

The specific objectives are as follows: 

  1. By June 2025: establishment and refining the legal framework for GHG emission quota trading, carbon credit transactions, and the carbon credit exchange and offset mechanism. This will ensure the legal basis for piloting the carbon trading platform and developing the necessary infrastructure for market operations. 

  1. 2025 - 2028: Implementation of the pilot carbon trading platform, conducting trial trading activities, and evaluating and refining the market operation mechanism. 

  1. From 2029 onward: Official operation of the carbon market, expanding its scale and scope while ensuring integration with regional and global carbon markets.  

Commodities 

According to the Proposal, the commodities traded in Vietnam's carbon market include two main categories: 

  1. GHG Emission Quotas: Allocated to facilities listed in the inventory of GHG-emitting sectors and facilities, either freely or through auctions. 

  1. Carbon Credits: Obtained from programs and projects under domestic and international carbon credit exchange and offset mechanisms, including the Clean Development Mechanism (CDM), Joint Credit Mechanism (JCM), and mechanisms under Article 6 of the Paris Agreement. 

Market Participants 

According to the Proposal, participants in Vietnam's carbon market include: 

  1. Facilities allocated GHG emission quotas. 

  1. Organizations implementing programs or projects under domestic or international carbon credit exchange and offset mechanisms in compliance with Vietnamese law and international treaties to which Vietnam is a party. 

  1. Organizations and individuals eligible to invest in and trade carbon credits. 

Key Considerations for Enterprises  

As Vietnam moves forward with the implementation of this Proposal, enterprises should consider the following activities: 

  • Regularly monitoring, updating, and complying with regulations related to GHG emissions and the carbon market to enhance emission management capacity and effectively participate in carbon trading. 

  • Participating in training programs and workshops organized by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with ministries and agencies to improve understanding and readiness for the carbon market. 

  • Choosing reputable partners to ensure the legality and quality of carbon credits. 

  • Adopting advanced production technologies to reduce emissions and improve energy efficiency, enabling enterprises to meet emission quota standards. 

  • Engaging in or initiating emission reduction projects to generate carbon credits and participate in the market. 

For the full text of the Decision, click the link below: https://vanban.chinhphu.vn/?pageid=27160&docid=212592