Entities identified as GHG Inventory Facilities must conduct a GHG inventory every two years. Reports are first submitted to the relevant Provincial People’s Committee (“PPC”) for appraisal and subsequently finalised for submission to the Ministry of Agriculture and Environment (“MAE”). Facilities that fail to comply may be subject to monetary penalties.
Development of a Domestic Carbon Market
The Law on Environmental Protection 2020 (LEP 2020) also establishes the legal foundation for Vietnam’s carbon market. Implementation is governed by Decision No. 232/QD-TTg dated 24 January 2025, which sets out milestones and administrative structures.
Implementation Timeline:
- Preparation Phase (Pre-June 2025): Development of legal frameworks and infrastructure for carbon credit trading, along with capacity-building for regulators and businesses; and
- Pilot Phase (June 2025 – December 2028): A pilot domestic carbon exchange will be launched. GHG quotas will be freely allocated to facilities in high-emission sectors.
Eligible carbon credits:
- credits generated under Vietnam’s domestic mechanisms; and
- credits from international programmes such as the Clean Development Mechanism (“CDM”), Joint Crediting Mechanism (“JCM”), and Article 6 of the Paris Agreement.
Entities permitted to trade include:
- facilities listed in the GHG Inventory List that have received GHG quotas; and
- other organisations and individuals that meet trading eligibility criteria.
The government will monitor the use of carbon credits to ensure proportionality with allocated GHG quotas.
Official Launch (from 2029): The carbon market will operate nationwide. Further measures may include:
- expansion of sectors subject to GHG quotas;
- introduction of auction-based allocation mechanisms; and
- broader scope of tradable credits and eligible market participants.
Administrative Structure:
- National Registration System: a digital platform overseen by the MAE will track and manage emissions quotas and carbon credit activity, including transfers, offsets, borrowing and repayments; and
- Trading Platform: the carbon trading platform will be developed and operated by the Hanoi Stock Exchange, with operational and technical standards issued by the MAE in coordination with the Ministry of Finance and other relevant authorities.
Vietnam’s structured and phased approach aims to create a transparent, credible carbon market whilst strengthening GHG oversight in high-emitting sectors. Businesses subject to inventory or trading obligations should proactively engage with the new regulatory landscape to ensure timely compliance and take advantage of emerging carbon credit opportunities.
Singapore: Carbon Tax and Mandatory Climate Reporting Framework
In line with its national sustainable development agenda, Singapore has adopted a phased regulatory approach combining carbon taxation with mandatory climate-related disclosure obligations.
Carbon Tax
Singapore’s carbon tax regime is governed by the Carbon Pricing Act 2018, which applies to business facilities engaged in (i) manufacturing and related services; (ii) the supply of electricity, gas, steam, compressed air and chilled water for air conditioning; and (iii) water supply, sewage and waste management services. This essentially covers facilities that emit 25,000 tonnes or more of carbon dioxide equivalent (tome) of GHG emissions annually.
As of 2024 and 2025, the carbon tax is set at SGD$25 per tCO₂e and will increase to SGD$45 per tCO₂e in 2026 and 2027. The government has indicated a targeted range of SGD$50–80 per tCO₂e by 2030. Under the International Carbon Credit (“ICC”) Framework, carbon tax-liable facilities may use eligible ICCs to offset up to 5% of their taxable emissions.
Mandatory Climate Reporting
Beginning in FY2025, all listed companies in Singapore are required to disclose climate-related information in line with the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (“ISSB”).
From FY2027, this obligation will extend to large non-listed companies—defined as those with annual revenue of at least SG$1bn and total assets of at least SG$500m, based on the two preceding financial years—unless they qualify for an exemption.
