Deputy Prime Minister Tran Hong Ha has approved the plan to establish and develop a carbon market in Vietnam. According to the plan, the pilot phase of carbon credit trading is set to begin in the second half of 2025.
Step-by-step implementation
By June 2025, Vietnam aims to develop and finalize the legal framework for exchanging greenhouse gas emission quotas and carbon credits. This will include mechanisms for carbon credit trading and offsetting, ensuring a solid legal foundation for the pilot carbon trading platform.
Infrastructure to support market operations will be established, alongside capacity-building initiatives for state agencies, enterprises, and individuals to effectively participate in the carbon market.
From June 2025 to the end of 2028, the domestic carbon trading platform will be piloted, while the legal system governing its operations will continue to be refined.
During this phase, nationwide implementation will occur. Regulations for transferring carbon credits and emission reduction results to international partners will be developed and decided upon by competent authorities.
By 2029, Vietnam plans to officially operate its domestic carbon trading platform. The emission quotas and carbon credits allocated during the pilot phase will be further studied for expansion to additional sectors and facilities.
Emission quotas will be allocated through two main methods: free allocation and auctions. Detailed ratios for these methods will be determined during the pilot phase, informed by collected data on quotas and trading volumes.
Additionally, other forms of carbon credits may be recognized for trading, such as those from verified domestic or international offset programs under mechanisms like the Clean Development Mechanism, the Joint Credit Mechanism, and Article 6 of the Paris Agreement.
National registration and infrastructure
The national system for registering greenhouse gas emission quotas and carbon credits will be developed to manage, update, and monitor activities such as borrowing, transferring, and offsetting quotas.
The Ministry of Natural Resources and Environment (MONRE) will lead the creation and operation of this system, working in collaboration with relevant agencies.
The Hanoi Stock Exchange will provide services for the carbon trading platform, meeting organizational, management, and technical standards.
Carbon trading will follow a centralized system, with emission quotas and carbon credits verified by MONRE and assigned unique, non-duplicable identification codes. Market participants must have depository accounts for trading quotas or credits, ensuring data synchronization and regulatory oversight.
The Vietnam Securities Depository and Clearing Corporation will handle transaction depositories and settlements. Payments will be automated, based on trade results provided by the Hanoi Stock Exchange, ensuring that goods transfer and payment occur simultaneously.
Objectives and long-term vision
The primary goal of the plan is to develop Vietnam’s carbon market to support its commitment to reducing greenhouse gas emissions under its Nationally Determined Contributions (NDCs).
This market will provide a new financial stream for emission reduction activities, promote green transformation, and foster low-emission technologies.
In turn, this will enhance the competitiveness of Vietnamese businesses both domestically and globally, while contributing to Vietnam’s transition to a low-carbon economy and its pledge to achieve net-zero emissions by 2050.
Tam An
