Key issues for businesses to consider when participating in the carbon market

The workshop aimed to provide information and clarify issues related to the domestic carbon market, preparations for operating the domestic carbon exchange, responsibilities of stakeholders participating in the market, and international experience in market governance and supervision.

110 facilities allocated greenhouse gas emission quotas

In his opening remarks, Nguyen Tuan Quang, Deputy Director of the Department of Climate Change (DCC), stated that the Government recently issued Decree No. 29/2026/ND-CP dated January 19, 2026, on the domestic carbon exchange. The Prime Minister also issued Decision No. 263/QD-TTg dated February 9, 2026, approving the total pilot greenhouse gas emission quota for the 2025-2026 period.

Based on this, the MAE issued Decision No. 699/QD-BNNMT dated February 27, 2026, on pilot allocation of quotas for 2025 and 2026. Accordingly, 110 facilities in the thermal power, iron and steel production, and cement sectors have been allocated quotas.

Currently, the MAE, together with related ministries and agencies such as the Vietnam Stock Exchange, the Hanoi Stock Exchange, the Vietnam Securities Depository and Clearing Corporation, and the State Securities Commission, is urgently implementing specific tasks to bring the market into official operation soon.

Providing further details on the domestic carbon market, Nguyen Thanh Cong, Deputy Head of the Carbon Market Division (DCC), said the main objective is to support greenhouse gas emission reductions to achieve national targets, including Vietnam’s Nationally Determined Contribution (NDC) and the goal of net-zero emissions by 2050. The mechanism will also promote investment in emission reductions and enhance the competitiveness of Vietnamese businesses in meeting international requirements for green and sustainable development.

The commodities traded on the market include greenhouse gas emission quotas allocated by the MAE to large emitters, as well as carbon credits. Market participants include facilities allocated emission quotas, organizations implementing carbon credit exchange and offset programs or projects, and organizations engaged in carbon credit trading.

Key rules for businesses

In principle, facilities must surrender emission quotas based on their greenhouse gas inventory results for the 2025-2026 period.

If emissions exceed the allocated quota, a facility may borrow up to 15% of the quota allocated for the next period to fulfill its obligation to the regulator. Facilities may also carry forward unused quotas to the next period after completing their obligations for the current period.

Facilities may also use carbon credits to offset excess emissions, but this must not exceed 30% of the facility’s allocated emission quota. All buying and selling transactions will be conducted through the domestic carbon exchange.

However, only certain types of credits will be eligible for trading on the exchange:

- Credits under the Article 6.4 mechanism of the Paris Agreement (mainly converted from the former Clean Development Mechanism – CDM).

- Credits under bilateral or multilateral carbon credit exchange and offset mechanisms between the Vietnamese government and foreign partners under Article 6.2 of the Paris Agreement.

- Domestic carbon credits developed according to Vietnam’s own standards in specific sectors. For example, Vietnam’s forest carbon credits are currently being finalized by the MAE and are expected to be announced soon.

In addition, the market will only accept credits generated from 2021 onward to ensure compliance with current legal regulations.

Discussing the operation of the domestic carbon exchange, Do Thanh Lam, a representative of the Legal Department of the Ministry of Finance, said the trading system will operate through close coordination among infrastructure providers and intermediary institutions to ensure transparency and safety.

Alongside the trading infrastructure, the backbone of the market is the National Registry System for greenhouse gas emission quotas and carbon credits, established and operated by the MAE.

This system serves as the primary database and is directly connected with the systems of the Hanoi Stock Exchange and the Vietnam Securities Depository and Clearing Corporation to ensure synchronization in transaction management.

Under the operating process, all carbon commodities must first be centrally registered in the National Registry System before being deposited. Ownership transfers outside the exchange must follow the Ministry’s guidelines and be conducted through the National Registry System to ensure comprehensive state supervision.

Currently, the Vietnam Stock Exchange and the Hanoi Stock Exchange are actively finalizing regulations on trading, supervision, and custody of emission quotas and carbon credits.

According to Nguyen Tien Dung, Deputy CEO of the Vietnam Stock Exchange, the exchange will soon coordinate closely with the DCC to organize specialized training programs. These will provide detailed guidance for businesses on how the trading platform operates and help them prepare for participation.

In the immediate term, within the National Registry System, the MAE will proactively issue accounts, identification codes, and serial numbers for quotas, and provide login information directly to facilities allocated emission quotas. Businesses only need to supplement additional information as requested by the ministry.

For organizations holding carbon credits under voluntary exchange or offset mechanisms, they must submit applications to register accounts with the MAE. Applications can be submitted through three flexible methods: direct submission, via the online portal, or through postal services.

Through the workshop, businesses allocated emission quotas and organizations owning carbon credits gained a clearer understanding of the regulations governing participation in the carbon market. They also recommended that authorities continue organizing workshops and specialized training programs to help enterprises participate in the carbon market more effectively.