Vietnam implements greenhouse gas emission quota trading

Starting in late June 2026, 92 organizations within the thermal power, steel, and cement industries will be allocated greenhouse gas emission quotas. These entities are authorized to trade VN2025 quotas on the domestic carbon market during the initial 2025-2026 allocation period.

To maintain compliance, facilities must submit audited greenhouse gas inventory reports to the Ministry of Natural Resources and Environment by December 1, 2027, and fulfill their quota surrender obligations by December 31, 2027. Failure to comply may result in administrative penalties or deductions from future allocations.

The regulatory framework provides flexibility for businesses facing high emissions. Companies may borrow up to 15% of their current period's allocated quota from the next period or use carbon credits to offset their obligations. These mechanisms are intended to support enterprises undergoing technological transitions or implementing emission reduction solutions.