Vietnam Approves Project to Establish Carbon Market for Emission Reduction

The Prime Minister of Vietnam has approved Decision No 232/QD-TTg, which greenlights a major project aimed at establishing and developing the country’s carbon market.

The project’s primary goal is to facilitate Vietnam’s achievement of its greenhouse gas (GHG) emission reduction targets, as outlined in the Nationally Determined Contributions (NDC), while minimizing costs for businesses and society.

In a statement, the government emphasized that the initiative would create new financial flows to support GHG reduction efforts, promote the transition to green technologies, and enhance the global competitiveness of Vietnamese businesses.

Additionally, the project is designed to accelerate the development of a low-carbon economy and contribute to addressing climate change, with the long-term objective of achieving net-zero emissions by 2050.

By June 2025, the project aims to complete the legal framework for the exchange of GHG emission quotas and carbon credits. This will include developing mechanisms for carbon credit trading and offsetting and establishing the necessary infrastructure for market operations.

The project will also focus on strengthening the management capacity of relevant government agencies and increasing awareness about the carbon market among businesses, organizations, and individuals.

Two key market commodities—Greenhouse Gas Emission Quotas and Certified Carbon Credits—will be introduced and made tradable under the project.

The carbon market will follow a detailed roadmap, with a pilot phase running from 2025 to 2028, and is expected to officially launch nationwide in 2029.

Key tasks for the initiative include developing the carbon market’s commodities, registering participants, creating a national registry and carbon trading platform, organizing market operations, and enhancing awareness and capacity building.