Hanoi, February 15, 2025 – The Europe Today: The Prime Minister of Vietnam has issued Decision No. 232/QD-TTg, officially approving a project to establish and develop the country’s carbon market. The initiative aims to support Vietnam’s commitment to reducing greenhouse gas (GHG) emissions, as outlined in its Nationally Determined Contributions (NDC), while fostering a low-carbon economy and enhancing business competitiveness.
The project seeks to create financial mechanisms to fund GHG reduction efforts, facilitate the transition to green technologies, and integrate Vietnamese enterprises into both domestic and international carbon trading frameworks. It also aligns with Vietnam’s broader goal of achieving net-zero emissions by 2050.
By June 2025, the legal framework for carbon credit trading and emission quota exchanges is expected to be finalized, along with the establishment of necessary infrastructure for market operations. The project also aims to strengthen the management capacity of government agencies and increase awareness among businesses, organizations, and individuals about the carbon market.
The market will feature two primary tradable commodities: Greenhouse Gas Emission Quotas and Certified Carbon Credits. A phased roadmap has been outlined, with a pilot program running from 2025 to 2028, followed by the official nationwide launch in 2029.
During the pilot phase, Vietnam will explore mechanisms for carbon credit transfers to foreign and international partners. The Government will also determine the proportion of carbon credits used for offsetting emissions against allocated quotas.
Large-scale GHG-emitting establishments, as designated by the Prime Minister’s greenhouse gas inventory list, will be required to participate in carbon trading. Other eligible organizations and individuals may also engage in transactions on the national carbon trading platform.
Under this initiative, key tasks include developing carbon market commodities, establishing a national registry and trading platform, organizing market operations, and enhancing awareness and capacity building.
The official operation of Vietnam’s carbon market in 2029 is expected to drive sustainable economic growth, attract international investment in carbon reduction projects, and strengthen the country’s role in global climate action.
