Vietnam to Pilot Carbon Trading Platform from June 2025

On January 24, 2025, Deputy Prime Minister Tran Hong Ha signed Decision No. 232/QD-TTg approving the Scheme on the Establishment and Development of the Carbon Market in Vietnam. The overall objective of the scheme is to develop the carbon market, contributing to the reduction of GHG emissions as committed in the Nationally Determined Contribution (NDC), and create new financial resources for emission reduction activities. The scheme also aims to promote green transition, develop low-emission technologies, enhance the competitiveness of Vietnamese businesses, and aim for net-zero emissions by 2050.

Vietnam to Officially Operate Carbon Credit Market in 2029. (Image generated by AI)

According to the roadmap, before June 2025, Vietnam will complete the legal framework for greenhouse gas emission quota trading and carbon credit transactions, laying the foundation for piloting the carbon trading platform. The pilot phase will take place from 2025 to 2028, before the official operation of the carbon market in 2029. The Hanoi Stock Exchange is responsible for developing and providing services for the domestic carbon trading platform.

Roadmap for Carbon Market Development in Vietnam

The carbon market will trade greenhouse gas emission quotas and carbon credits. Emission quotas will be allocated to facilities based on the List of Sectors and Facilities Required to Conduct Greenhouse Gas Inventory, issued by the Prime Minister under Decision No. 13/2024/QD-TTg. Carbon credits include those obtained from programs and projects under domestic and international exchange and offset mechanisms, such as the Clean Development Mechanism (CDM), the Joint Credit Mechanism (JCM), and mechanisms under Article 6 of the Paris Agreement.

How an emission trading system works

The development of the carbon market in Vietnam presents a significant opportunity for pioneering businesses in this field. Participating in the carbon market not only helps businesses comply with environmental regulations but also generates revenue from selling surplus carbon credits. To seize this opportunity, businesses need to understand the carbon credit market and prepare appropriate strategies.

The carbon credit market is an essential economic tool for reducing greenhouse gas emissions, enabling businesses to trade emission rights based on their actual emissions. A deep understanding of this market will help businesses capitalize on opportunities and address challenges amid the current green transition.

The implementation of the carbon market in Vietnam demonstrates the country’s strong commitment to reducing greenhouse gas emissions and promoting sustainable economic development. This is a crucial step in the journey toward the net-zero emission target by 2050.

For consultation on carbon credits, please contact Vinacontrol via Hotline/Zalo: 0243 943 3840 for timely support!