INTRODUCTION TO VIETNAM’S CARBON CREDIT ROADMAP

Vietnam is gradually developing and strengthening its carbon credit system to achieve its greenhouse gas (GHG) emission reduction targets, fulfill its nationally determined contribution (NDC), and pursue the goal of achieving net-zero emissions by 2050. In line with the government’s orientation, the carbon market is being developed through a roadmap progressing from institutional development and the establishment of management infrastructure to pilot implementation and official nationwide operation, ensuring alignment with domestic conditions and international practices.

To date, Vietnam has gradually established a relatively comprehensive legal framework through the 2020 Law on Environmental Protection and implementing regulations on GHG emission reduction, carbon exchanges, and carbon market development. In parallel, the government has implemented GHG inventories, piloted the allocation of emission allowances to major emitting sectors, developed the National Registration System, and established mechanisms for trading emission allowances and carbon credits.

Under the current roadmap, the period through 2027 will focus on completing the legal framework and technical infrastructure and conducting pilot operations of the carbon market. From 2028, the domestic carbon market will officially commence operations, with the scope of transactions gradually expanded and connected to international carbon market mechanisms under Article 6 of the Paris Agreement. The market will comprise two principal types of commodities: greenhouse gas emission allowances and carbon credits generated from eligible domestic and international emission reduction programs and projects.

The establishment of the carbon credit system not only serves as a tool to support the achievement of climate objectives but also creates new financial resources for the green transition, promotes technological innovation, enhances the competitiveness of enterprises, and strengthens Vietnam’s integration into regional and global carbon markets. This report provides an overview of the implementation roadmap, key milestones, operating mechanisms, legal framework, and opportunities and challenges for stakeholders, thereby offering a comprehensive perspective on the development of Vietnam’s carbon credit system.

Click here for more information.