Vietnam launches domestic carbon trading platform

Vietnam has officially launched its domestic carbon trading platform, marking a significant step toward the nation's Net Zero goal by 2050. The launch was organized by the Ministry of Finance in coordination with the Ministry of Agriculture and Environment.

Under the new system, greenhouse gas emissions are assigned a monetary value through emission quotas and carbon credits. Companies are allocated specific emission rights; those exceeding their quotas must purchase offsets through additional quotas or carbon credits, with offsets capped at 30% of the total allocated amount. Conversely, businesses that reduce emissions through technological improvements can sell their surplus quotas on the exchange.

During the current pilot phase, the government has allocated quotas to over 100 production facilities across three major emission-intensive sectors: cement, steel, and thermal power, involving more than 90 large enterprises. Testing conducted by the Hanoi Stock Exchange (HNX), the Vietnam Securities Depository and Clearing Corporation (VSDC), and the Department of Climate Change has indicated that the system is stable and ready for practical operation.