Domestic Carbon Exchange under Decree No. 29/2026/ND-CP
On January 19, 2026, the Government of Vietnam issued Decree No. 29/2026/ND-CP regulating the operation of the domestic carbon exchange. The Decree took effect on the date of issuance and establishes the legal framework for registration, account coding, ownership transfer, custody, trading, and settlement of greenhouse gas (GHG) emission allowances and carbon credits. This milestone marks a significant step toward establishing and developing Vietnam’s carbon market in line with the country’s green transition strategy and net-zero emission commitments.
Deposit account for participation
To participate in trading activities, organizations must register custody account information with a carbon deposit member. Key requirements include:
- Each participant may use only 1 (one) securities custody account.
- An additional custody account may be opened solely for transferring assets to another custody member. The previously used account must be canceled once the transfer is completed.
These provisions ensure transparency, prevent duplication, and strengthen ownership control over GHG emission allowances and carbon credits.
Deposit of GHG emission allowances and carbon credits
Before trading, emission allowances and carbon credits must be deposited with the Vietnam Securities Depository and Clearing Corporation (VSDC). Deposit and withdrawal procedures are conducted by submitting notifications through the National Registration System accompanying custody account details, the quantity of allowances or credits for deposit or withdrawal.
This mechanism safeguards asset integrity and minimizes transaction risks within the carbon trading system.
Trading and settlement mechanism
Trading participants may use only 1 (one) securities trading account at a carbon trading member, which must be clearly separated from other trading activities.
Key trading principles:
- Real-time settlement on a per-transaction basis
- Immediate notification of trading results
- Monthly or on-demand statements of cash and deposit accounts
Ownership transfer and recognition of GHG emission allowances and carbon credits occur immediately after transaction settlement.
Service Fee roadmap
- Pilot phase until December 31, 2028: No service fees charged.
- From January 1, 2029: Service fees will be applied in accordance with relevant regulations.
The fee exemption during the pilot phase is designed to encourage early participation and market familiarization among businesses.
Business impacts and recommendations
The issuance of Decree No. 29/2026/NĐ-CP establishes an official legal framework for Vietnam’s carbon market, creating opportunities for trading greenhouse gas (GHG) emission allowances and carbon credits. Accordingly, the carbon exchange serves as a key mechanism to encourage enterprises to transition toward low-emission production models and sustainable development.
To proactively participate in the market, enterprises need to establish accurate, comprehensive, and transparent Measurement – Reporting – Verification (MRV) systems; carefully assess the cost–benefit implications of market participation; and develop long-term emission management roadmaps to effectively capitalize on opportunities arising from the carbon market.
Conclusion
Decree No. 29/2026/ND-CP establishes a critical legal foundation for Vietnam’s domestic carbon exchange and the broader development of the national carbon market. For businesses, compliance is no longer the only objective—strategic participation can unlock competitive advantages, create new revenue opportunities, and accelerate the transition toward sustainable growth.
Please refer to the full text of Decree No. 29/2026/NĐ-CP at the link.
Related articles:
1. Amendment to the Decree on Greenhouse Gas Emission Reduction and Ozone Layer Protection
2. Approval of pilot Greenhouse Gas Emission allowances for 2025–2026
