Vietnam to Route Carbon Trading Via Securities Firms Ahead of Market Launch
Vietnam will require the trading of emission quotas and carbon credits in its domestic carbon market to be conducted via designated securities firms through the Hanoi Stock Exchange, according to a notice released Tuesday by the Ministry of Natural Resources and Environment.
The requirement, proposed by the Ministry of Finance, is included in a draft decree outlining the organization and operation of the country’s carbon trading exchange.
A pilot phase for the carbon market is scheduled to run from June 2025 through the end of 2028, with full-scale operations expected to begin in 2029. However, the June launch is expected to be largely symbolic, due to the absence of an operational national registry, said Mai Duong, carbon analyst at research firm Veyt.
Before credits or quotas can be listed for trading, they must be verified and registered in the national registry by the Ministry of Agriculture and Environment.
Participation in the market will be open to both authorized individuals and organizations for carbon credit trading. However, only facilities subject to compliance obligations will be allowed to trade emission quotas.
Covered entities are unlikely to engage in quota trading until benchmarks are set and allowances are allocated, as their obligations remain undefined, Duong added.
The draft decree also introduces a phased approach to emissions quota allocation. Sectoral management ministries will be responsible for proposing annual emission quotas for facilities under their jurisdiction, with allocations scheduled across three periods: 2025-2026, 2027-2028 and 2029-2030.
In the initial phase, quotas will be distributed to major emitters in thermal power, steel production and cement manufacturing. Approximately 150 facilities are expected to receive allocations, covering around 40% of the country’s total greenhouse gas emissions.
In addition, sectoral ministries will be tasked with approving technical guidelines for generating carbon credits, registering and deregistering carbon projects, and issuing carbon credits for eligible projects under their purview.
While the notice did not specify how offsets would be applied toward compliance obligations, an agriculture ministry official recently stated at a carbon event that the ministry is proposing to allow up to 30% offset usage — three times the original proposal, according to Duong.
Reporting by Lujia Wang, lwang@opisnet.com
Editing by Mei-Hwen Wong, mwong@opisnet.com
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