HCMC – All international carbon credit transactions must now be recorded in the national registration system to prevent double counting and ensure Vietnam stays on track with its nationally determined contributions (NDC) under the Paris Agreement.
- Vietnam establishes legal framework for domestic carbon market registry
- Vietnam to tighten carbon quota and credit management
The regulation is mentioned in Decree No. 112/2026/ND-CP, governing the international transfer of greenhouse gas emission reduction results and carbon credits. Taking effect on May 19, 2026, the decree marks a strategic milestone in Vietnam’s efforts to realize its Paris Agreement commitments and Net Zero targets.
The new decree outlines three primary exchange frameworks, including bilateral/multilateral agreements, United Nations standards and independent carbon standards. Besides, projects utilizing new, high-cost or uncommon technologies in Vietnam are permitted to transfer up to 90% of their credits internationally; meanwhile, widely adopted projects requiring less support are capped at a 50% transfer rate to prioritize domestic emission targets.
Regarding governance, the Ministry of Agriculture and Environment will serve as the focal point for approving transfers. For public investment projects, proceeds from carbon credit sales will be categorized as state budget revenue. In public-private partnership (PPP) projects, these earnings will be recorded as project revenue to incentivize private participation in green infrastructure.
This move follows the recent issuance of Circular No. 11/2026/TT-BNNMT by the Ministry of Agriculture and Environment, which provides technical guidelines for operating the national registration system for greenhouse gas emission quotas and carbon credits. Along with Decree No. 29/2026/ND-CP on carbon trading floors, Vietnam is finalizing its technical infrastructure for a pilot domestic carbon market scheduled for 2026–2027, before transitioning to a mandatory compliance market for large emitters in 2028.
Currently, Vietnam has 72 projects registered or issuing credits under the Gold Standard (GS), with an expected annual issuance of over 8.3 million credits. These projects primarily focus on renewable energy (wind, solar and hydro), biogas, and wastewater treatment, all contributing to the UN Sustainable Development Goals (SDGs).
