HCMC – Vietnam will begin piloting a domestic carbon market in June this year, with a full-scale launch planned for 2029, according to the national plan for establishing and developing carbon trading in the country.
To facilitate this transition, the Department of Climate Change under the Ministry of Agriculture and Environment is working on a national system for quota and credit registration. It is also coordinating with the Ministry of Finance to draft a decree on carbon trading and allocate emissions quotas to market participants.
Nguyen Tuan Quang, deputy director of the Department of Climate Change, emphasized that technical support from the Southeast Asia Energy Transition Partnership (ETP) and the United Nations Office for Project Services (UNOPS) has been instrumental in the process.
Through this collaboration, Vietnam has developed an initial framework for its quota and credit registration system and outlined operational procedures for the carbon trading exchange.
John Robert Cotton, deputy director of the ETP Program, commended Vietnam’s efforts, particularly in establishing its Emissions Trading System (ETS).
He noted that transitioning to an ETS requires strong institutional foundations and active stakeholder participation. To bridge knowledge gaps, a training program has been developed to equip participants with essential expertise.
Over the past year, ETP has conducted six training courses in Hanoi and HCMC, drawing 657 participants from various sectors, including policy, finance, and media.
However, Cotton pointed out that further training is needed during the ETS pilot phase from 2025 to 2027.
Currently, around 300 major emitting facilities have joined the program, but the Government has identified over 2,600 facilities required to conduct greenhouse gas inventories and potentially participate in the ETS. Expanding training initiatives will be key to preparing businesses and institutions for Vietnam’s emerging carbon market.
