Decision 232/QD-TTg 2025 Project on the Establishment and Development of a Carbon Market in Vietnam

DECISION

Approving the Scheme on the establishment and development of the carbon market in Vietnam^[1]

THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the November 17, 2020 Law on Environmental Protection;

Pursuant to the Government’s Decree No. 06/2022/ND-CP of January 7, 2022, providing the mitigation of greenhouse gas emissions and protection of the ozone layer;

Pursuant to the Government’s Resolution No. 50/NQ-CP of May 20, 2021, on the Government’s Action Program to implement the Resolution of the 13^th National Party Congress;

At the proposal of the Minister of Finance.

DECIDES:

Article 1. To approve the Scheme on the establishment and development of the carbon market in Vietnam (below referred to as Scheme) with the following contents:

I. VIEWPOINTS AND PRINCIPLES

1. To take the initiative in establishing and developing the carbon market in Vietnam in conformity with law and practical conditions, orientations for national development, Vietnam’s international commitments on greenhouse gas emission reduction, and the global carbon market development trend.

2. To develop the carbon market under a centralized model and operating according to market principles under the State’s strict management and supervision, adhering to the principles of openness, transparency, safety and efficiency in conformity with national conditions and international practices, and ensuring national interests and the harmonization of interests of market participants.

II. OBJECTIVES

1. Overall objectives

To develop the carbon market in Vietnam, contributing to the achievement of the greenhouse gas emission reduction targets committed in the Nationally Determined Contribution (NDC) with low costs covered by enterprises and the society, creating new financial flows for greenhouse gas emission reduction activities, promoting green transition, developing low-emission technologies, improving the competitiveness of Vietnamese enterprises in the country and the global market, developing a low-carbon economy, and actively responding to climate change toward net zero emissions by 2050.   

2. Specific objectives

a/ Until June 2025:

- To gradually build and complete the legal framework for the exchange of greenhouse gas emission allowances and carbon credits, and carbon credit exchange and offsetting mechanisms, ensuring the legal basis for the pilot implementation of the carbon exchange.

- To build infrastructure facilities for the organization and operation of the carbon market.

- To enhance the capacity of state management agencies to manage and operate the carbon market and the capacity and awareness of enterprises, organizations and individuals about their readiness to participate in the carbon market.

b/ The period from June 2025 to the end of 2028:

- To continue building and completing infrastructure facilities serving the organization and operation of the carbon market.

- To pilot the operation of the domestic carbon exchange.

- To continue completing the system of legal documents for the organization and operation of the carbon market.

- To continue building the capacity of state management agencies in managing and operating the carbon market; and the capacity and awareness of enterprises, organizations, and individuals to meet the requirements when the carbon market is put into official operation.

c/ From 2029 onward:

- To officially operate the domestic carbon exchange.

- To continue improving laws and infrastructure for the carbon market; to continue building the capacity of state management agencies for managing and operating the carbon market, and the capacity and awareness of enterprises, organizations and individuals to meet the requirements in the new period.

III. THE CARBON MARKET IN VIETNAM

1. Commodities on the carbon market include 2 types:

a/ Greenhouse gas emission allowances, which shall be allocated free or through auction to establishments on the Prime Minister-issued List of greenhouse gas-emitting sectors or establishments subject to greenhouse gas inventory.

b/ Carbon credits, which shall be certified for trading on the market, including:

- Carbon credits obtained through programs and projects under domestic carbon credit exchange and offsetting mechanisms in accordance with law;

- Carbon credits obtained through programs and projects under international carbon credit exchange and offsetting mechanisms, including:

+ Carbon credits obtained under the Clean Development Mechanism (CDM).

+ Carbon credits obtained under the Joint Crediting Mechanism (JCM).

+ Carbon credits obtained under the Mechanism provided in Article 6 of the Paris Agreement.

2. Carbon market participants

a/ Trading participants:

- For trading in greenhouse gas emission allowances:

Establishments on the Prime Minister-issued List of greenhouse gas-emitting sectors or establishments subject to greenhouse gas inventory that are allocated greenhouse gas emission allowances.  

- For trading in carbon credits:

+ Establishments on the Prime Minister-issued List of greenhouse gas-emitting sectors or establishments subject to greenhouse gas inventory that are allocated greenhouse gas emission allowances.  

+ Organizations implementing programs and projects under domestic or international carbon credit exchange and offsetting mechanisms in accordance with law and treaties to which the Socialist Republic of Vietnam is a contracting party.

+ Organizations and individuals qualified for participating in investment and trading in carbon credits.

b/ Trading support organizations that, depending on the projected market size, may include organizations performing trading support tasks.

3. The national registration system for greenhouse gas emission allowances and carbon credits

The national registration system for greenhouse gas emission allowances and carbon credits shall be established to serve the management, operation, updating and exploitation of information on greenhouse gas emission allowances and carbon credits; and handle the borrowing, returning, transfer and offsetting of greenhouse gas emission allowances.

The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with related agencies in, building, managing and operating the national registration system for greenhouse gas emission allowances and carbon credits.  

4. The trading system

a/ The carbon exchange

The trading in greenhouse gas emission allowances and carbon credits shall be conducted on the domestic carbon exchange.

The Hanoi Stock Exchange shall develop and provide domestic carbon exchange services that meet operational requirements on market organization and management and technical conditions and standards formulated by the Ministry of Natural Resources and Environment in coordination with the Ministry of Finance and related ministries, sectors and agencies.

b/ Modes of trading and trading registration, depository and payment

Transactions on the carbon market shall be organized in a centralized manner on the carbon exchange.

Greenhouse gas emission allowances and carbon credits that are certified by the Ministry of Natural Resources and Environment as eligible for trading on the carbon exchange shall be issued unique domestic codes for trading purposes. Entities that participate in trading on the carbon market in Vietnam shall have greenhouse gas emission allowance trading depository accounts or carbon credit trading depository accounts. The registration and issuance of greenhouse gas emission allowance and carbon credit codes shall be carried out in a centralized manner to ensure unified and synchronized data and meet management and supervision requirements.

The Vietnam Securities Depository and Clearing Corporation shall provide trading depository and payment services that meet operational requirements on market organization and management and technical conditions and standards formulated by the Ministry of Natural Resources and Environment in coordination with the Ministry of Finance, and related ministries, sectors and agencies. 

Trading payment shall be automatically made by the system based on trading results forwarded from the Hanoi Stock Exchange, adhering to the principle that the handover of commodities is performed simultaneously with the payment at the settlement bank. The payment for trading on the carbon exchange shall be made by commercial banks eligible to provide payment services for greenhouse gas emission allowance and carbon credit trading.

5. Organization of the operation of the carbon market

The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Finance, Ministry of Agriculture and Rural Development, Ministry of Construction, Ministry of Industry and Trade and Ministry of Transport, and related ministries, sectors and agencies in, organizing the operation of the domestic carbon market, ensuring that the market will not develop in an unorganized or spontaneous manner, thus causing losses of state resources and assets or inserting negative impacts on national security and social order.

The responsibilities of the Ministry of Natural Resources and Environment, Ministry of Finance, and related ministries, sectors and agencies for state management of the carbon market shall be specified in legal documents.

6. Roadmap for deployment of the carbon market

a/ The phase of pilot implementation from 2025 to the end of 2028

- To pilot the carbon market nationwide. The transfer of carbon credits and greenhouse gas emission reduction results to foreign and international partners shall be studied and specified in legal documents and considered and decided by competent authorities.

- To study and consider the free allocation of the entire greenhouse gas emission allowances to greenhouse gas-emitting establishments in several major emitting sectors.

- To certify carbon credits on the carbon exchange, including carbon credits obtained through/under: (i) programs and projects under domestic carbon credit exchange and offsetting mechanisms; (ii) the Clean Development Mechanism (CDM); (iii) the Joint Crediting Mechanism (JCM); (iv) and the Mechanism provided in Article 6 of the Paris Agreement.

- The proportion of carbon credits used for offsetting greenhouse gas emissions against the total greenhouse gas emission allowances allocated to establishments shall be specified by the Government.

- Entities that participate in trading on the carbon exchange must be: (i) major greenhouse gas-emitting establishments on the Prime Minister-issued List of greenhouse gas-emitting sectors or establishments subject to greenhouse gas inventory that are allocated greenhouse gas emission allowances; (ii) organizations and individuals eligible to buy and/or sell carbon credits on the carbon exchange.

b/ The phase of official operation from 2029 onward

- To officially operate the carbon market nationwide.

- To study and consider expansion of the sectors and establishments allocated greenhouse gas emission allowances according to a roadmap.

- To study and consider the allocation greenhouse gas emission allowances free of charge or  through auction. The detailed proportions for free allocation and auction of greenhouse gas emission allowances shall be proposed during the pilot implementation phase and as soon as sufficient information and data on allocated greenhouse gas emission allowances and trading volumes are available.

- To consider adding new types of carbon credits certified for trading on the carbon exchange.

- The proportion of carbon credits used for emission offsetting against the total greenhouse gas emission allowances allocated to establishments shall be specified by the Government.

- To consider extending entities allowed to participate in carbon credit trading on the carbon exchange (to adjust the conditions for organizations and individuals to participate in trading on the carbon exchange).

- Based on overall evaluation results of the pilot implementation of the domestic carbon market, the assessment of the carbon market’s socio-economic impacts and orientations for the carbon market’s official development, to study the possibility of connecting the domestic carbon market with regional and international carbon markets, and the possibility of transferring carbon credits and greenhouse gas emission reduction results to foreign and international partners for reporting to competent authorities for consideration and decision.

IV. TASKS AND SOLUTIONS

1. Regarding commodities on the carbon market:

- To formulate greenhouse gas emission reduction plans;

- To develop the total greenhouse gas emission allowance for each phase and each year;

- To organize the allocation of greenhouse gas emission allowances to establishments on the list of those subject to greenhouse gas inventory for each phase and annually;

- To formulate regulations on the management of carbon credits;

- To study and report to competent authorities on regulations on the transfer of carbon credits and greenhouse gas emission reduction results to foreign and international partners during the pilot phase of the carbon market;

- To formulate regulations and organize the evaluation and recognition of programs and projects under domestic and international carbon credit exchange and offsetting mechanisms;

- To organize the certification of greenhouse gas emission allowances and carbon credits to be traded on the carbon credit exchange of the domestic carbon market;

- To review and formulate regulations on the auction of greenhouse gas emission allowances.

2. Regarding carbon market participants:

- To update and adjust the list of greenhouse gas-emitting sectors and establishments subject to greenhouse gas inventory;

- To specify establishments to be allocated greenhouse gas emission allowances;

- To specify conditions for organizations and individuals participating in carbon credit investment and trading activities and organizations supporting trading on the carbon market.

3. Regarding the national registration system and carbon exchange:

- To establish, manage and operate the national registration system for greenhouse gas emission allowances and carbon credits;

- To formulate the legal framework for the domestic carbon exchange;

- To organize the development of a trading, depository and payment system for greenhouse gas emission allowances and carbon credits;

- To study and propose amendments and supplementations to existing legal documents, or the promulgation of new legal documents providing the connection of the domestic carbon exchange with regional and global carbon credit markets, the transfer of carbon credits and greenhouse gas emission reduction results to foreign and international partners in the course of the official operation of the carbon market based on competent authorities’ opinions.

4. Regarding the organization and operation of the carbon market

- To review the Law on Environmental Protection and regulations on the functions and tasks of ministries, sectors and agencies to assign responsibilities concerning the management, inspection, examination, supervision and settlement of complaints, petitions and denunciations about, and handling of violations related to, the carbon market;

- To formulate regulations on the organization and operation of the carbon market;

- To study and review bilateral, multilateral and international programs and cooperation agreements on carbon credit exchange and offsetting mechanisms and the transfer of greenhouse gas emission reduction results that have been signed in accordance with regulations to ensure the realization of emission reduction targets and commitments according to the NDC and for national interests;

- To develop a process of appraising greenhouse gas inventory results in establishments and sectors and appraising greenhouse gas emission reductions; to organize the management of greenhouse gas emission reduction activities;

- To formulate technical provisions on measurement, reporting and appraisal of greenhouse gas emission reductions and greenhouse gas inventories in sectors subject to greenhouse gas inventory;

- To formulate regulations on the purchase, sale, transfer, borrowing, return, and withdrawal of greenhouse gas emission allowances;

- To review, study and propose amendments and supplementations to regulations on taxes, fees, charges and service prices related to the carbon market and study the management and use of revenues from emission allowance auctions;

- To supplement regulations on violations and administrative sanctions concerning the carbon market;

- To evaluate and summarize the pilot implementation of the domestic carbon market, and evaluate the socio-economic impacts of the carbon market;

- To review and propose amendments and supplementations to existing legal documents, or promulgation of new legal documents to create a legal framework for the official operation of the carbon market.

5. Regarding awareness improvement and capacity building:

- To build a portal/website on the domestic carbon market;

- To disseminate information about the carbon market and improve the awareness of cadres, civil servants and public employees at all levels, the business community and local communities about the carbon market;

- To organize training on, and disseminate knowledge about, domestic and international carbon markets for reporters and editors of news and press agencies;

- To provide information about the carbon market to news and press agencies; to disseminate information about the carbon market through the mass media;

- To enhance the capacity of civil servants performing policymaking tasks; and the contingent of cadres and civil servants engaged in the management of the exchange of greenhouse gas emission allowances and carbon credits on the domestic and international carbon markets;

- To help enterprises access and get ready for participating in the carbon market in Vietnam.

(Details of the tasks and solutions are provided in the Appendix to this Decision).

V. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Natural Resources and Environment shall:

- Assume the prime responsibility for, and coordinate with related ministries, sectors and agencies in, organizing the operation of the domestic carbon market and participating in the global carbon market;

- Assume the prime responsibility for, and coordinate with related ministries, sectors, agencies, localities, enterprises and associations in, implementing the Scheme; take the initiative in integrating the objectives and tasks of the Scheme with target programs and other related schemes and tasks of ministries, sectors and localities;

- Synthesize and balance demands for resources to implement the Scheme;

- Organize communication, dissemination, training and guidance on the Scheme-related contents;

- Monitor, urge, summarize, organize the final review and evaluation of the Scheme implementation results at the end of the pilot phase and every 5 years in the phase of official operation, and report thereon to the Prime Minister.

2. The Ministry of Finance shall:

- Assume the prime responsibility for, and coordinate with the Ministry of Natural Resources and Environment and related ministries, sectors and agencies in, establishing the domestic carbon market;

- Assume the prime responsibility for submitting to competent authorities the allocation of recurrent expenditures to ministries and central agencies to implement the Scheme.

3. The Ministry of Industry and Trade, Ministry of Transport, Ministry of Agriculture and Rural Development, and Ministry of Construction shall:

- Assume the prime responsibility for, and coordinate with related ministries and sectors in, performing the tasks assigned to them in the Scheme;

- Continue to implement the tasks specified in legal documents and the approved programs and schemes in the fields relating to greenhouse gas emission reduction and the development of the carbon market;

- Based on the Scheme’s tasks, review related programs, plans and schemes that have been approved by competent authorities, formulate detailed annual and phase-based plans and tasks for the carbon market development according to the assigned functions and tasks and formulate long-term and annual state budget needs for the implementation of the Scheme, and send them to the Ministry of Natural Resources and Environment, Ministry of Planning and Investment, and Ministry of Finance for summarization and reporting;  

- To take the initiative in establishing and specifying technical conditions, institutions and guidance on entities participating in the carbon market in their fields of management to implement the Scheme;

- To study and propose priority solutions to encourage and support Vietnam’s key and strategic export sectors and products to enhance their competitiveness in the market.

4. The Ministry of Public Security, Ministry of Planning and Investment and Ministry of Information and Communications, and the State Bank of Vietnam shall:

- Assume the prime responsibility for, and coordinate with the Ministry of Natural Resources and Environment and related ministries and sectors in, implementing the tasks assigned in the Scheme;

- The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with ministries, sectors and central agencies in, summing up and reporting to competent authorities the allocation of resources for the implementation of the Scheme under current regulations;

- The Ministry of Information and Communications shall direct press agencies and the grassroots information system to carry out communication among organizations, businesses and individuals participating in the carbon market.

5. Provincial-level People’s Committees shall:

- Coordinate with the Ministry of Natural Resources and Environment and related ministries and sectors in performing tasks set out in this Scheme;

- Submit to provincial-level People’s Councils the allocation of funds for the implementation of the Scheme in accordance with the law on the state budget.

6. The Vietnam Chamber of Commerce and Industry, associations and enterprises shall

- The Vietnam Chamber of Commerce and Industry shall assume the prime responsibility for, and coordinate with related ministries, sectors and agencies in, disseminating and organizing the provision of knowledge for organizations, enterprises, communities and individuals to participate in the carbon market;

- Coordinate with ministries and sectors in implementing the Scheme; implement policies to support enterprises in enhancing their capacity to be ready for participating in carbon market activities;

- Take the initiative in increasing their capacity to implement carbon credit exchange and offsetting mechanisms and participate in the carbon market; grasp market information and relevant regulations.

7. In case the ministries, sectors and agencies mentioned in this Scheme are merged or consolidated or terminate their operations, the ministries, sectors and agencies that take over the tasks of these ministries, sectors and agencies shall continue performing the tasks assigned in this Decision.

VI. FUNDS FOR THE IMPLEMENTATION OF THE SCHEME

Funds for the implementation of the Scheme shall come from the state budget according to regulations on state budget management decentralization, social capital, and other lawful funding sources as specified in law.

Article 2. This Decision takes effect on the date of its signing.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decision.-

For the Prime Minister
Deputy Prime Minister
TRAN HONG HA