How will carbon credit trading be implemented?

The Government issued Decree No. 112/2026/ND-CP dated April 1, 2026, on the international exchange of greenhouse gas emission reduction results and carbon credits.

Ensuring principles and transparency in international exchanges.

According to Decree No. 112/2026/ND-CP, international exchanges of greenhouse gas emission reduction results and carbon credits must comply with fundamental principles. First and foremost, they must be consistent with the provisions of the Paris Agreement, while also contributing to the development and transfer of emission reduction technologies, enhancing the competitiveness of businesses, and moving towards a low-carbon economy in Vietnam.

The exchange prioritizes the achievement of greenhouse gas emission reduction targets in Vietnam's Nationally Determined Contribution (NDC), as well as relevant international commitments. National interest is emphasized, along with the requirement to harmonize interests among participating parties and contribute to sustainable development in the localities where the projects are implemented.

The government issued Decree No. 112/2026/ND-CP dated April 1, 2026, on the international exchange of greenhouse gas emission reduction results and carbon credits. (Illustrative image)

One notable point is that all international exchange activities must be recorded and published on Vietnam's National Registration System. This regulation aims to ensure transparency, avoid duplication, and facilitate the monitoring and inventory of emissions.

The decree also clearly defines the management authority. Accordingly, the Ministry of Agriculture and Environment is the agency responsible for issuing international transfer approval documents after emission reduction results or carbon credits have been granted. Results that have been revoked or expired will not be allowed to be transferred.

Regarding the amount of greenhouse gas emission reduction results transferred internationally, the corresponding adjustments between Vietnam and its partners are made in accordance with the provisions of the Paris Agreement, ensuring that there is no "double counting" in the emission inventory.

Specific regulations regarding the ratio and mechanism for selling credits.

The decree also stipulates the international transfer rates for greenhouse gas emission reductions and carbon credits. In case of corresponding adjustments, the maximum rates are allocated to each activity group.

Specifically, for priority programs and projects, the transfer rate can reach up to 90% of the results delivered within a given period. Meanwhile, other activity groups have a lower ceiling, at 50%.

In cases where no corresponding adjustments apply, the maximum transfer rate is 90% for all programs and projects. The remainder after international transfers is permitted for use in the domestic market, creating room for the formation and operation of a domestic carbon market in the future.

The list of measures and activities permitted for international transfer is not fixed. Based on the actual situation, the ministries managing the respective fields may propose adjustments and additions and submit them to the Ministry of Agriculture and Environment for compilation and reporting to the Prime Minister for consideration and decision.

Regarding the sale of emission reduction results and carbon credits, the Decree stipulates that the managing agency of public investment programs and projects is the decision-making body. However, this process requires input from relevant ministries and agencies such as the Ministry of Agriculture and Environment, the Ministry of Public Security, and other related bodies. The deadline for providing feedback is set at 15 working days from the date of receipt of the request.

For public-private partnership (PPP) investment projects, revenue from carbon credit exchange is recognized as project revenue and managed in accordance with PPP regulations. In cases where projects have already signed contracts or have pre-existing financial plans, if a need for carbon credit exchange arises, the parties will adjust the contract or financial plan accordingly.

For public investment programs and projects, revenue from the sale of carbon credits is identified as a source of state budget revenue and is managed and used in accordance with the law on the state budget.

Decree No. 112/2026/ND-CP dated April 1, 2026, on the international exchange of greenhouse gas emission reduction results and carbon credits, will take effect from May 19, 2026.

Source: https://congthuong.vn/trao-doi-tin-chi-carbon-se-duoc-thuc-hien-ra-sao-450028.html