Vietnam is moving forward with plans to establish its carbon market, with the legal framework set for completion by June. This initiative will enable the trading of greenhouse gas (GHG) emission quotas and carbon credits, marking a significant step toward the country’s climate goals.
Outlined in Decision 232/QD-TTg, issued by the Prime Minister, the plan is designed to support emissions reduction efforts while driving sustainable economic growth. It aligns with Vietnam’s commitment to achieving net-zero emissions by 2050, as outlined in its Nationally Determined Contributions (NDCs).
Building the Foundations for Carbon Trading
Vietnam’s carbon market will introduce two key trading mechanisms: Greenhouse Gas Emission Quotas and Certified Carbon Credits. These will serve as tradable assets, allowing businesses to offset emissions and invest in cleaner technologies.
The roadmap includes a pilot phase running from 2025 to 2028, with a full-scale national implementation planned for 2029. The framework will not only establish a dedicated trading platform but also provide financial incentives to encourage businesses to adopt greener practices.
Strengthening Market Regulations and Participation
A crucial part of the initiative is enhancing regulatory oversight and increasing awareness among businesses and stakeholders. The government aims to register participants, develop market infrastructure, and implement governance structures to ensure a smooth and efficient trading system.
As Vietnam pushes forward with its carbon market strategy, the initiative is expected to play a vital role in reducing emissions while promoting economic resilience in the face of global climate challenges.
