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

DECISION

Approving the Project on the Establishment and Development of a Carbon Market in Vietnam

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THE PRIME MINISTER

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

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

Pursuant to the Government's Decree No. 06/2022/ND-CP dated January 07, 2022, on the mitigation of greenhouse gas emissions and protection of the ozone layer;

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

At the proposal of the Minister of Finance.

DECIDES:

Article 1. Approving the Project on the "Establishment and Development of a Carbon Market in Vietnam" with the following contents:

I. VIEWPOINTS AND PRINCIPLES

1. Proactively establishing and developing a carbon market in Vietnam in accordance with the law, practical conditions, national development orientations, international commitments on greenhouse gas emission mitigation to which Vietnam is a party, and the development trend of the global carbon market.

2. Developing the carbon market under a centralized model, operating according to market principles under the strict management and supervision of the State, ensuring the principles of publicity, transparency, safety, and efficiency, in accordance with national conditions and international practices, ensuring national interests and harmonizing the interests of stakeholders in the market.

II. OBJECTIVES

1. General objective

Developing a carbon market in Vietnam, contributing to the achievement of greenhouse gas emission reduction targets committed in the Nationally Determined Contribution (NDC) at low cost to enterprises and society, creating new financial flows for greenhouse gas emission reduction activities, promoting green transformation, developing low-emission technologies, contributing to enhancing the competitiveness of Vietnamese enterprises domestically and in the world market, developing a low-carbon economy and proactively responding to climate change, towards achieving net-zero emissions by 2050.

2. Specific objectives

a) Period until June 2025:

- Gradually developing and completing the legal framework for the trading of greenhouse gas emission quotas, carbon credits, and the mechanism for exchanging and offsetting carbon credits, ensuring the legal basis for the pilot implementation of a carbon trading exchange.

- Developing the infrastructure for organizing and operating the carbon market.

- Enhancing the management and operational capacity of state management agencies, and the capacity and awareness of enterprises, organizations, and individuals to meet the requirements for participation in the carbon market.

b) Period from June 2025 to the end of 2028:

- Continuing developing and completing the infrastructure to support the organization and operation of the carbon market.

- Piloting the operation of a domestic carbon trading exchange.

- Continuing improving the system of legal normative documents for the organization and operation of the carbon market.

- Further enhancing the capacity for managing, organizing, and operating the carbon market by State management agencies; improving capacity and awareness of enterprises, organizations and individuals that can fulfill requirements once the official carbon market commences operation.

c) Period from 2029:

- Officially operating the domestic carbon trading exchange.

- Continuing improving legal regulations and infrastructure for the carbon market; continuing enhancing the capacity for managing, organizing and operating the carbon market by State management agencies, improving capacity and awareness of enterprises, organizations and individuals, in order to meet the requirements in the new period.

III. THE CARBON MARKET IN VIETNAM

1. Commodities in the carbon market consist of two types:

a) Greenhouse gas (GHG) emission quotas, allocated to establishments on the List of sectors and establishments required to conduct greenhouse gas inventories issued by the Prime Minister, through free allocation and auctioning methods.

b) Carbon credits certified for trading on the market, including:

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

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

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

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

+ Carbon credits obtained under the Mechanism pursuant to Article 6 of the Paris Agreement.

2. Participants in the carbon market

a) Trading participants:

- For trading of GHG emission quotas:

Establishments on the List of sectors and establishments required to conduct greenhouse gas inventories issued by the Prime Minister that are allocated GHG emission quotas.

- For trading of carbon credits:

+ Establishments on the List of sectors and establishments required to conduct greenhouse gas inventories issued by the Prime Minister that are allocated GHG emission quotas.

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

+ Organizations and individuals eligible to participate in investment and trading activities of carbon credits.

b) Trading support organizations: depending on the expected market size, may include organizations performing trading support tasks.

3. National Registration System for GHG emission quotas and carbon credits

The National Registration System for GHG emission quotas and carbon credits shall be established to serve the management, operation, updating, and exploitation of information on GHG emission quotas and carbon credits; processing activities of borrowing, returning, transferring, and offsetting GHG emission quotas.

The Ministry of Natural Resources and Environment shall preside over and coordinate with related agencies in developing, managing, and operating the National Registration System for GHG emission quotas and carbon credits.

4. Trading System                                                                              

a) Carbon trading exchange

The trading of GHG emission quotas and carbon credits shall be conducted on the domestic carbon trading exchange.

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

b) Trading, registration, depository, and settlement methods

Trading on the carbon market shall be conducted through a centralized method on the carbon trading exchange.

GHG emission quotas and carbon credits certified by the Ministry of Natural Resources and Environment for trading on the exchange shall be assigned a domestic code for trading purposes; the assigned code shall be unique and non-duplicative. Participants in trading on the carbon market in Vietnam shall have a depository account for trading GHG emission quotas or a depository account for trading carbon credits. The registration and issuance of codes for GHG emission quotas and carbon credits shall be carried out centrally to ensure data consistency, synchronization, and compliance with management and supervision requirements.

The Vietnam Securities Depository and Clearing Corporation shall provide depository and settlement services according to operational requirements for market organization and management, and technical conditions and standards developed by the Ministry of Natural Resources and Environment in coordination with the Ministry of Finance and related ministries, sectors, and agencies.

Transaction settlement shall be automatically performed by the system based on the trading results sent by the Hanoi Stock Exchange, ensuring the principle that the transfer of goods is carried out simultaneously with the payment of money at the settlement bank. The payment for transactions on the carbon trading exchange shall be carried out by a commercial bank eligible to provide payment services for trading GHG emission quotas and carbon credits.

5. Organization of carbon market operation

The Ministry of Natural Resources and Environment shall preside over and coordinate with the Ministry of Finance, the Ministry of Agriculture and Rural Development, the Ministry of Construction, the Ministry of Industry and Trade, the Ministry of Transport, and related ministries, sectors, and agencies in organizing the operation of the domestic carbon market, ensuring that it does not develop freely and spontaneously, causing loss of State resources and assets, affecting national security and social order.

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

6. Roadmap for carbon market implementation

a) Pilot implementation period from 2025 to the end of 2028

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

- All GHG emission quotas shall be studied and considered for free allocation to GHG-emitting establishments in certain high-emission sectors.

- Carbon credits certified for trading on the carbon trading exchange, including carbon credits obtained from: (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) the Mechanism pursuant to Article 6 of the Paris Agreement.

- The ratio of carbon credits used to offset greenhouse gas emissions to the total allocated GHG emission quotas for establishments shall be prescribed by the Government.

- Trading participants on the carbon trading exchange shall be: (i) large GHG-emitting establishments on the List of sectors, GHG-emitting establishments required to conduct greenhouse gas inventories issued by the Prime Minister that are allocated GHG emission quotas; (ii) organizations and individuals eligible to participate in buying and selling carbon credits on the carbon trading exchange.

b) Official operation period from 2029

- The carbon market shall be officially operated nationwide.

- Sectors and establishments allocated GHG emission quotas shall be studied and considered for expansion according to a roadmap.

- GHG emission quotas shall be studied and considered for free allocation and allocation through auction. The detailed ratio of free allocation and auctioning of GHG emission quotas shall be proposed during the pilot implementation period and after complete information and data on allocated GHG emission quotas and trading volume are available.

- Considering adding more types of certified carbon credits for trading on the carbon trading exchange.

- The ratio of carbon credits used for emission offsetting to the total allocated GHG emission quotas for establishments shall be prescribed by the Government.

- Considering expanding the participants eligible to trade carbon credits on the carbon trading exchange (adjusting the conditions for organizations and individuals to participate in trading on the carbon trading exchange).

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

IV. TASKS AND SOLUTIONS

1. Group of tasks and solutions regarding commodities in the carbon market

- Developing a plan for greenhouse gas emission mitigation;

- Developing the total greenhouse gas emission quota for periods and annually;

- Allocating greenhouse gas emission quotas for periods and annually to establishments on the list of those required to conduct greenhouse gas inventories;

- Developing regulations on carbon credit management;

- Studying and reporting to competent authorities on regulations on the transfer of carbon credits and greenhouse gas emission reduction outcomes to foreign and international partners during the pilot period of the carbon market;

- Developing regulations and organize the assessment and recognition of programs and projects under domestic and international carbon credit exchange and offsetting mechanisms;

- Organizing the certification of greenhouse gas emission quotas and carbon credits traded on the carbon credit trading exchange of the domestic carbon market;

- Reviewing and developing regulations on the auctioning of greenhouse gas emission quotas.

2. Group of tasks and solutions regarding participants in the carbon market

- Updating and adjust the list of sectors and establishments required to conduct greenhouse gas inventories;

- Prescribing establishments allocated greenhouse gas emission quotas;

- Prescribing conditions for organizations and individuals participating in investment and trading activities of carbon credits, and trading support organizations in the carbon market.

3. Group of tasks and solutions regarding the national registration system and the carbon trading exchange

- Establishing, managing, and operating the national registration system for greenhouse gas emission quotas and carbon credits;

- Developing the legal framework for the domestic carbon trading exchange;

- Organizing the development of the trading system, depository system, and settlement system for greenhouse gas emission quotas and carbon credits;

- Studying and proposing amendments, supplements, or the promulgation of new legal normative documents prescribing the connection of the domestic carbon trading exchange with regional and global carbon credit markets, and the transfer of carbon credits and greenhouse gas emission reduction outcomes to foreign and international partners during the official operation period of the carbon market, based on the opinions of competent authorities.

4. Group of tasks and solutions regarding the organization of carbon market operation

- Reviewing the the Law on Environmental Protection and regulations on the functions and tasks of ministries, sectors, and agencies to assign tasks related to the management, inspection, check, supervision, resolution of complaints, petitions, denunciations, and handling of violations related to the carbon market;

- Developing regulations on the organization of carbon market operation;

- Studying and reviewing cooperation programs and agreements on mechanisms for exchanging and offsetting carbon credits, transferring bilateral, multilateral, and international greenhouse gas emission reduction outcomes that have been signed in accordance with regulations to ensure the implementation of emission reduction targets and commitments under the NDC and national interests;

- Developing a process for appraising the results of greenhouse gas inventories at the establishment and sector levels, and appraising greenhouse gas emission mitigation; organizing the management of greenhouse gas emission mitigation activities;

- Developing technical regulations on measurement, reporting, appraisal of emission reduction, and greenhouse gas inventories in sectors required to conduct greenhouse gas inventories;

- Developing regulations on the trading, transfer, borrowing, return, and revocation of greenhouse gas emission quotas;

- Reviewing and proposing amendments and supplements to regulations on taxes, fees, charges, and service prices related to the carbon market, and studying the management and use of revenue from quota auctions.

- Supplementing violations and administrative handling measures related to the carbon market;

- Assessing and summarizing the pilot implementation process of the domestic carbon market, and assessing the socio-economic impacts of the carbon market;

- Reviewing and proposing amendments, supplements, or the promulgation of new legal normative documents to create a legal framework for the official operation of the carbon market.

5. Group of tasks and solutions on raising awareness and enhancing capacity

- Developing a portal/website on the domestic carbon market;

- Disseminating information and raising awareness about the carbon market for officials, civil servants, and public employees at all levels, the enterprise community, and local communities;

- Providing training and disseminating knowledge about the domestic and international carbon markets to reporters and editors of news agencies and press;

- Providing information on the carbon market to news agencies and press; disseminating information on the carbon market through mass media;

- Enhancing the capacity of civil servants tasked with policy development; officials and civil servants involved in managing the exchange of greenhouse gas emission quotas and carbon credits in the domestic carbon market and the international carbon market;

- Supporting enterprises in accessing and preparing to participate in the carbon market in Vietnam.

(Details of the tasks and solutions are specified in the Appendix attached to this Decision approving the Project).

V. ORGANIZATION OF IMPLEMENTATION

1. Ministry of Natural Resources and Environment

- Presiding over and coordinating with related ministries, sectors, and agencies in organizing the operation of the domestic carbon market and participating in the global carbon market;

- Presiding over and coordinating with ministries, sectors, agencies, localities, enterprises, and associations in implementing the Project; proactively integrating the objectives and tasks of the Project with target programs and projects and tasks of other ministries, sectors, and localities;

- Synthesizing and balancing the resource needs for implementing the Project;

- Organizing activities of dissemination, training, and guidance on contents related to the Project;

- Monitoring, urging, synthesizing, organizing a review, and assessing the implementation of the Project at the end of the pilot period and periodically every 5 years during the official period, and reporting to the Prime Minister.

2. Ministry of Finance

- Presiding over and coordinating with the Ministry of Natural Resources and Environment, related ministries, sectors, and agencies in establishing the domestic carbon market;

- Presiding over submitting to competent authorities for allocation of recurrent expenditure funding for ministries and central agencies to implement the Project according to the contents approved by competent authorities.

3. Ministries of: Industry and Trade, Transport, Agriculture and Rural Development, Construction

- Presiding over and coordinating with related ministries and sectors in implementing the - tasks assigned in the Project;

- Continuing implementing the tasks prescribed in legal normative documents and programs and projects in sectors related to greenhouse gas emission mitigation and carbon market development that have been approved by competent authorities;

- Based on the tasks of the Project, reviewing related programs, plans, and projects that have been approved by competent authorities, developing specific task plans for periods and annually for developing the carbon market according to assigned functions and tasks, establising long-term and annual state budget funds needs for implementing the Project, and sending them to the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment, and the Ministry of Finance for synthesis and reporting;  

- Proactively developing and issuing technical and institutional conditions and guiding participants in the carbon market in their respective management areas to implement the Project;

- Studying and proposing priority solutions to encourage and support key and strategic export sectors and products of Vietnam to enhance competitiveness in the market.

4. Ministries of: Public Security, Planning and Investment, Information and Communications, State Bank of Vietnam

- Presiding over and coordinating with the Ministry of Natural Resources and Environment and related ministries and sectors in implementing the tasks assigned in the Project;

- The Ministry of Planning and Investment shall preside over and coordinate with ministries, departments, sectors, and central agencies to synthesize and report to competent authorities to balance resources for implementing the Project in accordance with current regulations;

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

5. People's Committees of provinces and centrally-run cities

- Coordinating with the Ministry of Natural Resources and Environment and related ministries and sectors in implementing tasks according to this Project;

- Submitting to the People's Councils for allocation of funding to implement the Project in accordance with the law on the state budget.

6. Vietnam Chamber of Commerce and Industry, Associations, and Enterprises

- The Vietnam Chamber of Commerce and Industry shall preside over and coordinate with related ministries, sectors, and agencies in implementing tasks of communication, training, and knowledge fostering for organizations, enterprises, communities, and individuals to access and participate in the carbon market;

- Coordinating with ministries and sectors in implementing the Project; implementing policies to support enterprises in enhancing capacity and preparing to participate in activities in the carbon market;

- Proactively enhancing capacity to implement carbon credit exchange and offsetting mechanisms and participate in the carbon market; grasping market information and related regulations.

7. In case where the ministries, sectors, and agencies mentioned in this Project are merged, consolidated, or cease to operate, the ministries, sectors, and agencies that receive the tasks of those ministries, sectors, and agencies shall continue to perform the tasks assigned in this Decision.

VI. IMPLEMENTATION FUNDING

Funding for the implementation of the Project shall be allocated from the state budget funds according to the decentralized state budget management system, funds mobilized from non-state sources, and other legal sources in accordance with the law.

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

Article 3. Ministers, Heads of ministerial-level agencies, Heads of Government-attached agencies, Chairpersons of People's Committees of provinces and centrally-run cities, and related organizations and individuals shall be responsible for the implementation of this Decision./.

* All Appendices are not translated herein.