Piloting the establishment and development of carbon markets in Vietnam

The carbon market in Vietnam will be piloted from 2025 to the end of 2028 and officially operational from 2029.

Deputy Prime Minister Tran Hong Ha has just signed the approval of the Project on Establishing and Developing a Carbon Market in Vietnam. (Source: Shutterstock)

This is one of the contents of the Project on Establishing and Developing a Carbon Market in Vietnam, which was recently approved by Deputy Prime Minister Tran Hong Ha in Decision No. 232/QD-TTg dated January 24. Accordingly, the carbon market in Vietnam will be implemented in 2 phases: a pilot phase from 2025 to the end of 2028 and an official operational phase from 2029.

According to the project, the carbon market in Vietnam will be proactively established and developed in accordance with the law and practical conditions, national development orientation, international commitments on greenhouse gas emission reduction that Vietnam participates in, and the global carbon market development trend.

The carbon market is developed according to a centralized model, operating according to market principles under the strict management and supervision of the State, ensuring the principles of publicity, transparency, safety, efficiency, in accordance with national conditions and international practices, ensuring national interests, and harmonizing the interests of market participants.

Developing a carbon market in Vietnam contributes to the implementation of the greenhouse gas emission reduction target committed in the Nationally Determined Contribution (NDC) at low costs for businesses and society, creating new financial flows for greenhouse gas emission reduction activities, promoting green transformation, developing low-emission technologies, contributing to improving the competitiveness of Vietnamese enterprises domestically and in the world market, developing a low-carbon economy and proactively responding to climate change, towards achieving net emissions of "0" by 2050.

The project has identified a number of key contents related to the establishment and development of the carbon market in Vietnam. Accordingly, goods in the carbon market include greenhouse gas emission quotas and carbon credits.

Participants in the carbon market include establishments in the List of sectors and establishments emitting greenhouse gases that must conduct greenhouse gas inventories issued by the Prime Minister and are allocated greenhouse gas emission quotas; organizations implementing programs and projects under the domestic carbon credit exchange and offset mechanism or implementing programs and projects under the international carbon credit exchange and offset mechanism in accordance with the provisions of law and international treaties to which the Socialist Republic of Vietnam is a member; organizations and individuals eligible to participate in carbon credit investment and trading activities. In addition, depending on the expected market size, there may also be organizations tasked with supporting transactions.

According to the project, the national registration system for greenhouse gas emission quotas and carbon credits is established and operated by the Ministry of Natural Resources and Environment to serve the management, operation, updating, and exploitation of information on greenhouse gas emission quotas and carbon credits; and to handle activities of borrowing, paying back, transferring, and offsetting greenhouse gas emission quotas.

The project also specifies that the organization of transactions on the carbon market is carried out in a centralized manner on the carbon exchange.

The Ministry of Natural Resources and Environment shall preside over and coordinate with relevant ministries, branches and agencies to organize the operation of the domestic carbon market, ensuring that it does not develop freely and spontaneously, causing loss of State resources and assets, affecting national security and social order. The task of state management of the carbon market will be specifically regulated in legal documents.

Source: https://baoquocte.vn/thi-diem-thanh-lap-va-phat-trien-thi-truong-carbon-tai-viet-nam-302291.html