HCMC – Vietnam is set to allocate greenhouse gas emission quotas to 150 major facilities in the power, steel, and cement industries as part of its efforts to reduce national emissions and develop a domestic carbon market.
The plan, discussed during a Government meeting on March 24 chaired by Deputy Prime Minister Tran Hong Ha, is included in a draft decree amending Decree 06/2022 on greenhouse gas reduction and ozone layer protection, reported the Government news website (baochinhphu.vn).
Under the draft, emission quotas will be distributed in three phases: 2025–2026, 2027–2028, and 2029–2030. In the first phase, the 150 facilities identified for quota allocation are responsible for around 40% of Vietnam’s total greenhouse gas emissions. These facilities operate in thermal power generation, steel manufacturing, and cement production—three of the country’s most carbon-intensive industries.
A representative from the Ministry of Agriculture and Environment said the draft decree is being developed with a flexible and adaptive approach, allowing for continuous updates to align with both domestic developments and international trends. The framework treats emission reduction as a cross-sectoral and cross-border issue, involving targeted management by industry and emitter type, and promoting carbon credit generation.
Initially, central government agencies will take the lead in implementing the program, evaluate the outcomes, and refine the process before devolving responsibility to local authorities.
The draft also proposes updates to regulations governing Vietnam’s emerging carbon market. These include clearer definitions of participants allowed to trade emission quotas and carbon credits, detailed procedures for transactions on a carbon trading platform, and rules for carbon credit offsetting mechanisms within the country.
Administrative procedures are expected to be streamlined, particularly those related to the verification of carbon credits and the confirmation of emission quotas.
According to Decision 232, which approved the roadmap for establishing Vietnam’s carbon market, the country aims to complete the legal framework for emission quota and carbon credit trading by June 2025.
A pilot domestic carbon trading platform is scheduled to launch between mid-2025 and the end of 2028. Full-scale operations of the platform are expected to begin in 2029, with plans to gradually expand quota allocation to additional sectors and facilities.
