Viet Nam discusses new developments in carbon market after COP30

On November 25 - 26 in Hanoi, domestic and international experts gathered to discuss at the policy forum "Navigating Global and Vietnam Carbon Markets: Post-COP30 Insights and the Way Forward."

The event was organized by the Carbon For Good project in collaboration with VNU-UEB, CARE, CIFOR, the University of British Columbia, and Flinders University, bringing together nearly 200 delegates from Canada, Vietnam, and several other countries.

At the workshop, Assoc. Prof. Dr. Le Trung Thanh, Rector of the University of Economics, Vietnam National University, Hanoi, stated that the world is witnessing significant shifts in climate change response efforts.

Following COP30, global agreements, particularly regulations related to Article 6 of the Paris Agreement, are ushering in a new phase for the carbon market, where countries, businesses, and the scientific community are working together to achieve net-zero emissions. In this context, Vietnam is urgently preparing to operate its domestic carbon market from early 2029 and to deepen integration with international carbon credit trading mechanisms. Workshop participants paid particular attention to the new decisions adopted at COP30 in Belém.

According to Mr. Nguyen Tuan Quang, Deputy Director of the Department of Climate Change, the world is entering the official implementation phase of Article 6.4 of the Paris Agreement, a milestone that enhances environmental standards, transparency, and integrity in carbon credit exchanges.

Mr. Quang emphasized that the carbon market is shifting from an offset model to a real contribution approach, requiring carbon credits, especially forest credits to demonstrate genuine emissions reductions, long-term stability, and transparency. The establishment of the Tropical Forever Forest Fund (TFFF) further reinforces this trend, as forests are valued not only for their carbon absorption but also for their associated ecosystem services.

These new standards mean that low-quality or non-transparent credits have almost no place in the international market. Mechanisms under Article 6.4 will serve as an important reference framework for countries, including Vietnam, to develop, trade, and recognize credits that support their Nationally Determined Contributions (NDCs).

In recent years, Vietnam has been laying the legal groundwork for the carbon market. Specifically, the 2020 Law on Environmental Protection introduced provisions on organizing and developing the carbon market for the first time; Decrees 06/2022/ND-CP and 119/2025/ND-CP established a roadmap through 2028, with official operations set to begin in 2029. Meanwhile, the Ministry of Agriculture and Environment is continuing to translate these regulations into draft decrees on international trading of emissions reductions and carbon credits; forest carbon absorption and storage; and the operation of domestic carbon exchanges. The new regulations will also incorporate international standards post-COP30.

According to Deputy Director Nguyen Tuan Quang, Vietnam will develop its carbon market not only prioritizing transaction volumes but also using it as a tool to transition to a low-emission growth model. Therefore, the focus will not be on cheap, high-quantity credits, but on high-quality credits to ensure national benefits and uphold Vietnam’s credibility internationally.

Canada’s Ambassador to Vietnam, Mr. Jim Nickel, acknowledged Vietnam’s efforts and affirmed that the carbon market is a key tool for achieving net-zero emissions. Sharing international experiences will help Vietnam design a suitable market that balances economic growth with environmental protection.

At the workshop, speakers discussed Vietnam’s legal framework and the adjustments needed after COP30; global trends in voluntary carbon credit markets, compliance markets, forest credits, and green credits; as well as the challenges faced by the private sector in developing high-quality projects.

According to Ms. Le Kim Dung, Head of CARE Vietnam, equity is a crucial factor in developing the carbon market. She emphasized that all policies and operational mechanisms must ensure that women, the poor, and ethnic minority communities have opportunities to participate and benefit, in line with the principle of leaving no one behind.

The latest data from the World Bank’s 2025 Carbon Pricing Status and Trends Report show that carbon pricing instruments now cover about 28% of global greenhouse gas emissions, generating over USD 100 billion in revenue last year and becoming an important public financial resource for the green transition.