Consider free and auction allocations

According to the roadmap, by June 2025 , gradually build and complete the legal framework for exchanging greenhouse gas emission quotas, carbon credits and credit exchange and offset mechanisms, ensuring the legal basis for piloting the carbon trading floor.

Building infrastructure to serve market operation organization. The capacity of state management agencies to manage and operate the carbon market, the capacity and awareness of enterprises, organizations and individuals to meet the readiness to participate in this market.

From June 2025 to the end of 2028 , a pilot domestic carbon trading platform will be operated. In addition, the system of legal documents to serve the organization and operation of the carbon market will continue to be completed.

This phase will be piloted nationwide. The transfer of carbon credits and greenhouse gas emission reduction results to foreign and international partners will be studied and specifically regulated in legal documents and considered and decided by competent authorities.

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The carbon credit market will be piloted in the first half of 2025.

The entire greenhouse gas emission quota is studied and considered for free allocation to greenhouse gas emission facilities in a number of large emission sectors.

From 2029, the domestic carbon trading floor will officially operate . Accordingly, the sectors and facilities allocated greenhouse gas emission quotas will be studied and considered for expansion according to the roadmap.

Emission quotas are being studied and considered for free allocation and auction allocation. The detailed rates for free allocation and auction of emission quotas will be proposed during the pilot implementation phase and after full information and data on allocated quotas and transaction volumes are available.

In addition, consider adding additional types of certified carbon credits to be traded on the exchange. The ratio of carbon credits used to offset emissions to the total emission quota allocated to the facility is determined by the Government.

The project also clearly states that greenhouse gas emission quotas are allocated to facilities in the List of sectors and facilities emitting greenhouse gases that must conduct greenhouse gas inventories issued by the Prime Minister in a free and auction manner.

Carbon credits confirmed for trading on the market include: carbon credits obtained from programs and projects under the domestic credit exchange and offset mechanism as prescribed; carbon credits obtained from programs and projects under the international carbon credit exchange and offset mechanism (credits obtained from the Clean Development Mechanism, the General Credit Mechanism, the Mechanism under Article 6 of the Paris Agreement).

Greenhouse gas emission quotas and carbon credits are assigned codes.

Also according to the project, the National Registration System on greenhouse gas emission quotas and carbon credits is established to serve the management, operation, updating, and exploitation of information on greenhouse gas emission quotas and credits; and to handle activities of borrowing, paying back, transferring, and offsetting greenhouse gas emission quotas.

The Ministry of Natural Resources and Environment is assigned to preside over and coordinate with relevant agencies to build, manage and operate this system.

Hanoi Stock Exchange will build and provide domestic carbon trading floor services according to professional requirements on market organization and management and technical conditions and standards.

The organization of transactions on the carbon market is carried out in a centralized manner on the carbon exchange. In which, greenhouse gas emission quotas and carbon credits certified by the Ministry of Natural Resources and Environment to be traded on the exchange will be assigned a domestic code to serve the transaction, the code assigned is unique and non-duplicated.

When participating in transactions on the carbon market in Vietnam, the subject must have a depository account for greenhouse gas emission quota transactions or a depository account for carbon credit transactions. Registration and code issuance activities are carried out centrally to ensure that data is unified, synchronized and meets management and monitoring requirements.

Vietnam Securities Depository and Clearing Corporation provides depository and transaction settlement services according to professional requirements on organization, market management and technical conditions and standards presided over by the Ministry of Natural Resources and Environment, in coordination with relevant agencies.

Transaction payment will be automatically performed by the system based on transaction results sent by Hanoi Stock Exchange, ensuring the principle that goods transfer is performed simultaneously with payment at the bank.

The Ministry of Natural Resources and Environment shall preside over and coordinate with relevant ministries, branches and agencies to organize the operation of the domestic carbon market, ensuring that it does not develop freely and spontaneously, causing loss of State resources and assets.

The project aims to develop a carbon market in Vietnam, contributing to the implementation of the greenhouse gas emission reduction target committed in the Nationally Determined Contribution (NDC) at low costs for businesses and society; at the same time, creating new financial flows for greenhouse gas emission reduction activities, promoting green transformation, and developing low-emission technologies.

Thereby, contributing to improving the competitiveness of Vietnamese enterprises domestically and in the world market, developing a low-carbon economy and proactively responding to climate change, towards achieving net zero emissions by 2050.

Wood exports earn 17.3 billion USD, promoting the development of the forest carbon credit market . The new directive of Minister Le Minh Hoan emphasized that the project of planting 1 billion trees has entered its final year. He also noted the promotion of carbon absorption and storage services and the development of the forest carbon credit market.