Transparent and modern emission management

The Law of Environmental Protection (2020) represents a major milestone in strengthening Viet Nam’s state management framework for addressing climate change. The law explicitly requires that climate change response measures be integrated into national strategies and development planning, while clearly defining the roles and responsibilities of state management agencies, organizations, and individuals. At the same time, it emphasizes and protects the rights and interests of local communities in participating in environmental protection initiatives and climate action programs.

To implement this law effectively, the government has issued four detailed decrees and four resolutions focused on ozone layer protection and on exchanging results on emission reductions and carbon credits with the international community. In addition, the Prime Minister has issued numerous decisions that guide greenhouse gas inventories, safeguard the ozone layer, and establish national strategies for climate adaptation, thereby establishing a comprehensive and modern legal foundation for Viet Nam’s climate governance.

Among these, Decree 06/2022/ND-CP on greenhouse gas mitigation and ozone layer protection is considered the first legal document to fully establish the core components of a modern emission management system.

This includes greenhouse gas inventories, the MRV system (Measurement, Reporting, and Verification), mandatory emission reduction measures, and the foundational framework for a carbon market. By clearly assigning responsibilities to each sector and to major emission sources, the decree has laid a solid foundation for transforming the way economic growth is pursued, ensuring that development goes hand in hand with emission reductions.

For the first time, an online registration and reporting system for greenhouse gas inventories and quota allocation has been introduced, paving the way for a fully digitalized platform in the future.

With the synchronized implementation of these regulations, industries, sectors, and production facilities are compelled to adjust their development models. This encourages enterprises to invest in renewable energy, green technologies, and circular economy practices during the country’s new phase of development, primarily as the government aims for double-digit economic growth in the coming years.

Meanwhile, the carbon market offers enterprises greater flexibility and time to gradually transition their production and business operations by enabling the purchase, sale, and exchange of emission reduction outcomes. Importantly, the formalization and institutionalization of the carbon market also create a new financial avenue, attracting international investment in green projects and clean technologies. With over 42% forest cover and a strong agricultural sector, Viet Nam has significant potential to generate carbon credits from forests, crop cultivation, and livestock activities, effectively turning these “green assets” into a valuable economic resource.

As these regulations are applied in practice, many provisions require fine-tuning to better align with the capacities of local authorities and enterprises, as well as with the demands of international integration. In response, Decree 119/2025/ND-CP, issued on 1 August 2025, was enacted to supplement and refine Decree 06, thereby ensuring a more effective and practical regulatory framework.

One of the most notable changes under the new decree is the narrowing of participation in the carbon market. Previously, all facilities obligated to conduct greenhouse gas inventories could participate in carbon trading. Under the revised regulations, however, only those facilities that have been allocated emission quotas are permitted to engage in market transactions, creating a more structured and manageable system.

The decree additionally mandates the creation of a unified National Carbon Registry System, designed to ensure full transparency, traceability, and effective management of both carbon credits and emission allowances.

The responsibilities of ministries, agencies, and local authorities regarding the monitoring, reporting, and verification (MRV) of greenhouse gas emissions have also been clarified and delineated in greater detail. Of particular significance, for the first time, provincial People’s Committees are tasked with consolidating and reporting local emission-reduction results, thereby strengthening accountability and coordination across administrative tiers.

Another notable advancement is the institutionalization of regulations relating to Article 6 of the Paris Agreement, covering project approval mechanisms and procedures for the international transfer of carbon credits. These provisions are critical, as they position Viet Nam not only to participate in global carbon markets but also to take an active role in coordinating and managing carbon credit trading internationally in the years ahead. This framework underscores Viet Nam’s concrete commitment to implementing its Nationally Determined Contributions (NDCs) and achieving the country’s national targets for greenhouse gas emission reductions.