Proposed regulations on domestic carbon trading floors

Transactions on the carbon trading market are conducted by negotiated transaction method.

The Ministry of Finance said that the development of the Decree aims to specify a number of provisions in the Law on Environmental Protection related to the establishment and development of the carbon market in Vietnam. At the same time, it creates a legal framework for the establishment and, in the immediate future, pilot operation of a domestic carbon trading floor according to the objectives in Decision 232/QD-TTg dated January 21, 2025 of the Prime Minister approving the Project on Establishment and Development of the Carbon Market in Vietnam.

According to the draft, the principles of transactions on the carbon trading floor are fair, public, transparent; protecting the rights and legitimate interests of market participants; organizations and individuals participating in transactions on the market are responsible for understanding legal regulations, information about goods and are responsible for their own buying and selling decisions. Goods on the carbon trading market Goods on the carbon trading market include:

1. Greenhouse gas emission quota.

2. Carbon credits, including:

a) Carbon credits obtained from programs and projects under the domestic carbon credit exchange and offset mechanism in accordance with the provisions of law;

b) Carbon credits obtained from programs and projects under the international carbon credit exchange and offset mechanism.

The above-mentioned goods must be confirmed by the Ministry of Agriculture and Environment and recorded on the national registration system before being included in the carbon trading system by the Hanoi Stock Exchange.

Hanoi Stock Exchange shall remove the above-mentioned commodities from the carbon trading system in the following cases: These commodities expire; other cases as prescribed by the Ministry of Agriculture and Environment.

Trading on the carbon trading market

Trading entities must open a trading account at a trading member to conduct transactions in greenhouse gas emission quotas and carbon credits.

The trading member shall notify the customer of the transaction results immediately after the transaction is executed in accordance with the form agreed with the customer. The trading member shall send a statement of the cash account, greenhouse gas emission quota and carbon credits monthly or upon request from the customer.

After the transaction of greenhouse gas emission quotas and carbon credits is established and completed, the Hanoi Stock Exchange is responsible for providing information on transaction results to the Vietnam Securities Depository and Clearing Corporation to carry out payment activities for greenhouse gas emission quotas and carbon credits transactions.

Transaction by negotiation

Regarding the transaction method, the draft clearly states that transactions on the carbon trading market are conducted by agreement on the carbon trading system according to the principle that the parties participating in the transaction agree on the transaction contents. Transactions by agreement are established when the buyer or seller enters a transaction order into the carbon trading system and the counterparty confirms this transaction order.

Negotiated transaction methods include:

Electronic agreement is a form of transaction in which the transaction subject enters a buy or sell order with a firm commitment into the system or selects appropriate corresponding orders that have been entered into the system to execute the transaction.

A conventional agreement is a form of transaction in which the buyer and seller agree on the terms of the transaction in advance and report the results to the carbon trading system to establish the transaction.

Trading activities of greenhouse gas emission quotas and carbon credits at the Hanoi Stock Exchange are carried out in accordance with the provisions of the Regulations on trading of greenhouse gas emission quotas and carbon credits of the Hanoi Stock Exchange.

Transaction payment

Transactions on the carbon trading system are settled via the carbon trading settlement system on a transaction-by-transaction basis, without applying the central clearing counterparty mechanism.

Depository members must open a deposit account in the name of the depository member at the paying bank to make payments for greenhouse gas emission quota and carbon credit transactions. The paying bank is responsible for managing detailed information on the deposit balance for payment for greenhouse gas emission quota and carbon credit transactions of the transaction participants.

Based on the transaction results provided by the Hanoi Stock Exchange as prescribed in Clause 4, Article 24 of this Decree, the Vietnam Securities Depository and Clearing Corporation shall verify the validity of the transaction, block the quantity of greenhouse gas emission quotas and carbon credits sold and notify the valid transaction results to the depository member to confirm the transaction results. Based on the confirmation of the depository member, the Vietnam Securities Depository and Clearing Corporation shall determine the payment obligation, greenhouse gas emission quotas, carbon credits and send the payment obligation information to the paying bank...

Vietnam Securities Depository and Clearing Corporation makes payments for greenhouse gas emission quota and carbon credit transactions using the instant payment method for each transaction with payment time on the same trading day.

Payment for greenhouse gas emission quota and carbon credit transactions is made at the payment bank based on the payment obligation announced by the Vietnam Securities Depository and Clearing Corporation.

Source: https://baolangson.vn/de-xuat-quy-dinh-ve-san-giao-dich-cac-bon-trong-nuoc-5042349.html