Deputy Prime Minister Tran Hong Ha has signed a decision approving a project on the establishment and development of a carbon market in Vietnam.
The project’s overall goal is to develop a carbon market in Vietnam, contributing to the achievement of greenhouse gas (GHG) emission reduction targets committed under the Nationally Determined Contributions (NDC) at the lowest cost for businesses and society.
It aims to generate new financial streams for GHG emission reduction activities; promote green transitions and the development of low-emission technologies; enhance the competitiveness of Vietnamese businesses both domestically and globally; and foster the development of a low-carbon economy and proactively address climate change toward achieving net-zero emissions by 2050.
Under the project by June 2025 Vietnam will gradually build and complete the legal framework for the exchange of GHG emission quotas, carbon credits, and mechanisms for carbon credit trading and offsetting to ensure the legal basis for piloting a carbon trading platform and developing the necessary infrastructure to facilitate the operation of the carbon market.
It also focuses on enhancing the management and operational capacity of government agencies overseeing the carbon market, as well as improving the readiness, capacity, and awareness of businesses, organizations, and individuals to actively participate in the carbon market.
The project clearly defines two types of commodities for the carbon market, namely Greenhouse Gas Emission Quotas, and Certified Carbon Credits that can be traded on the market. It also specifies the trading methods and outlines a roadmap for implementing the carbon market, with the pilot phase lasting from 2025 to the end of 2028. This phased approach allows for testing, evaluation, and refinement of the market mechanisms before full-scale implementation.
The project outlines five groups of tasks and solutions for implementing the carbon market, including those for carbon market commodities, market participants, the national registry system and carbon trading platform, organization and operation of the carbon market, and raising awareness and enhancing capacity.
(VOV)
