MOU signings mark key step toward domestic carbon exchange launch

Six MOUs were signed at the event. Three were concluded between the Ministry of Agriculture and Environment, represented by the Department of Climate Change, and the Viet Nam Exchange (VNX), the Viet Nam Securities Depository and Clearing Corporation (VSDC), and the Hanoi Stock Exchange (HNX), respectively. The remaining three were signed by VSDC with VNX, HNX, and the Joint Stock Commercial Bank for Investment and Development of Viet Nam (BIDV), respectively.

The signing marks a significant milestone in the implementation of Government Decree No. 29/2026/ND-CP, dated January 19, 2026, on the operation of Viet Nam's domestic carbon trading exchange. The MOUs represent a concrete step toward formalizing coordination mechanisms between state regulatory bodies and market infrastructure operators, laying the groundwork for a carbon market that functions safely, transparently, and efficiently in line with the government-approved roadmap.

Speaking at the ceremony, Nguyen Tuan Quang, Deputy Director General of the Department of Climate Change under the Ministry of Agriculture and Environment, said the MOUs establish a shared framework to align principles, designate coordination channels, and standardize the exchange of information and data. They also govern reporting, monitoring, and public disclosure obligations, as well as operational procedures related to the registration, custody, trading, and settlement of greenhouse gas emission allowances and carbon credits. He added that the agreements provide a basis for joint incident response and the handling of issues that may arise during the exchange's operation.

Nguyen Tuan Quang affirmed that the signing of the MOUs reflects not only the institutional, technical, and operational readiness of the parties involved, but also their collective resolve to deploy market-based instruments in pursuit of greenhouse gas emission reduction targets, advance Viet Nam's green transition, and support the country's sustainable development goals.

Hoang Van Thu, Vice Chairman of the State Securities Commission under the Ministry of Finance, emphasized the particular significance of the occasion, describing it as a demonstration of close coordination between state regulatory authorities and market operators, and an expression of shared commitment to ensuring all necessary conditions are in place before the domestic carbon exchange begins operations.

Building on the signed agreements, the relevant agencies and institutions are expected to continue sharing information, expertise, and resources, and to move swiftly to review and complete their respective assigned responsibilities in order to bring the domestic carbon exchange into operation in a safe, transparent, and efficient manner - contributing meaningfully to Viet Nam's sustainable development objectives and its commitment to achieving net-zero emissions.

In recent years, carbon markets have expanded rapidly globally. Alongside the rise of green trade and green investment, and the introduction of cross-border carbon adjustment mechanisms, deeper integration into carbon pricing systems is increasingly becoming an imperative for economies seeking to preserve their competitiveness and fulfill their international climate commitments.

Viet Nam is developing its carbon market as a key instrument for achieving its greenhouse gas emission reduction targets and advancing toward net-zero emissions by 2050. Through the trading of emission allowances and carbon credits, the market is intended to help enterprises optimize compliance costs, incentivize investment in clean technologies, improve energy efficiency, and mobilize social resources for emissions reduction activities.

In parallel with the construction of market infrastructure, the Prime Minister has issued a decision approving a pilot allocation of total greenhouse gas emission allowances to facilities in several key emitting sectors. This is an important preparatory step aimed at establishing an initial supply of commodities for the domestic carbon market, while enabling facilities and enterprises to gradually familiarize themselves with the mechanisms for managing, trading, and complying with greenhouse gas emission allowance requirements under the established roadmap.

Under Decree No. 29/2026/ND-CP, eligible greenhouse gas emission allowances and carbon credits will be registered on the National Registry System administered by the Ministry of Agriculture and Environment, held in custody by VSDC, and traded on the trading system organized and operated by the Hanoi Stock Exchange.