Forest in Quảng Bình Province. Việt Nam will develop carbon market to meet greenhouse gas (GHG) emission reduction targets. —VNA/VNS Photo

HÀ NỘI — The Prime Minister has issued Decision No 232/QĐ-TTg to approve the establishment and development of Việt Nam’s carbon market.

The project’s primary goal is to establish a carbon market in Việt Nam to help meet greenhouse gas (GHG) emission reduction targets set in the Nationally Determined Contributions (NDC), while minimising costs for businesses and society.

The initiative aims to create new financial flows for GHG reduction efforts, support the transition to green technologies, and enhance the competitiveness of Vietnamese businesses in both domestic and international markets.

The project is also designed to accelerate the development of a low-carbon economy and address climate change, working toward the goal of achieving net-zero emissions by 2050.

By June 2025, the project targets to complete the legal framework for the exchange of GHG emission quotas and carbon credits, including development of mechanisms for carbon credit trading and offsetting, and establish necessary infrastructure for carbon market operations.

Additionally, the project aims to boost the management capacity of relevant Government agencies and raise awareness among businesses, organisations and individuals about the carbon market.

The project introduces two primary market commodities: Greenhouse Gas Emission Quotas and Certified Carbon Credits, which will be tradable.

It also outlines a detailed roadmap for the carbon market, with a pilot phase running from 2025 to 2028 and the market officially launching nationwide in 2029.

Under this project, key tasks include developing the carbon market’s commodities, registering participants, creating a national registry and carbon trading platform, organising market operations, and enhancing awareness and capacity building. — VNS