On 24 January 2025, the Prime Minister issued Decision No. 232/QD-TTg approving the project for establishment and development of carbon trading market in Vietnam (Decision 232). According to Decision 232, the carbon trading market is set to be developed with the following timeline:
- From the issuance date of Decision 232 until June 2025: To develop (i) the legal framework for carbon trading and to ensure the legal grounds for the implementation of pilot carbon trading program; (ii) the necessary infrastructure to serve the purpose of operating the carbon trading market; (iii) the capability of relevant parties in the operation and implementation of carbon trading market.
- From June 2025 to the end of 2028: To (i) continue developing the necessary infrastructure, and legal framework, and capability of relevant parties; (ii) implement the pilot program for carbon trading market. At this stage, the pilot trading program will concentrate on carbon credits and greenhouse gas allowances that are specially coded for safe transactions. With the help of a custodial system from the Vietnam Securities Depository and settlement through accredited commercial banks, the automated platform will guarantee smooth operations. Parties allowed to participate in the carbon trading market are (i) large greenhouse gas emission facilities as classified by the Prime Minister; (ii) organizations and individuals eligible to participate in buying and selling carbon credits on the carbon trading market.
- From 2029: To officially implement the carbon trading market and develop all relevant aspects.
It is also stated under Decision 232 that the carbon trading market will be implemented domestically with the management services provided by the Hanoi Stock Exchange. Regarding the sustainable development of the carbon trading in Vietnam, the Ministry of Natural Resources and Environment is tasked with taking the lead and coordinating with all relevant authorities to achieve such a goal.
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Please do not hesitate to contact Dr. Oliver Massmann at [email protected] if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
