Perfecting the carbon market in Vietnam

On October 7, at the meeting to give opinions on completing the draft Project on Establishing and Developing the Carbon Market in Vietnam, Deputy Prime Minister Tran Hong Ha assigned the Ministry of Finance to coordinate with the Ministry of Natural Resources and Environment and other Ministries and branches to thoroughly review legal documents related to this market.

According to the draft, the carbon market in Vietnam will help achieve the goal of reducing greenhouse gas emissions at low costs while promoting green transformation, developing technology, and improving competitiveness. The pilot phase of 2025-2028 will only take place domestically, not connecting to the international market. From 2029, the market will officially operate and research the ability to connect with the international market.

The draft sets out five groups of tasks, including goods, participating entities, trading floor, operating organization, and raising awareness and capacity. Representatives of Ministries and branches discussed the assignment of management responsibilities between the Ministry of Natural Resources and Environment and the Ministry of Finance, especially related to carbon credit exchange activities.

The Deputy Prime Minister emphasized that the carbon market is a potential opportunity to attract investment and develop technology, but international regulations on quota allocation and mechanisms are still not synchronized. Therefore, Vietnam needs to implement the pilot roadmap cautiously, both deploying and perfecting, to keep up with the world's trends.