Vietnam officially establishes domestic carbon trading exchange framework

The Government has issued Decree No. 29/2026/ND-CP regarding the domestic carbon exchange, establishing a comprehensive legal framework for the organization and operation of the carbon market in Vietnam.

The Decree consists of 6 chapters and 35 articles regulating activities related to the domestic carbon trading platform.

Key provisions include registration, domestic coding, transfer of ownership, custody, trading, and settlement of greenhouse gas (GHG) emission quotas and eligible carbon credits. It also defines the responsibilities of governing agencies and organizations in managing the exchange, as well as requirements for reporting and information disclosure.

The applicable entities include the Vietnam Securities Depository and Clearing Corporation (VSDC), the Vietnam Exchange (VNX), and the Hanoi Stock Exchange (HNX). The regulation also applies to agencies and organizations participating in the domestic carbon market under environmental protection laws, as well as all entities and individuals involved in the operation, registration, and settlement of GHG quotas and carbon credits.

The Decree specifies that GHG emission quotas and carbon credits eligible for trading must comply with Decree No. 06/2022/ND-CP (dated January 7, 2022) regarding the reduction of GHG emissions and the protection of the ozone layer, as amended and supplemented by Decree No. 119/2025/ND-CP.

Under the new regulations, all GHG quotas and carbon credits must be centrally registered on the national registration system of the Ministry of Agriculture and Environment before they can be deposited or traded on the domestic exchange. The ministry is responsible for recording information on the registration system, including details of the quotas and credits, as well as ownership information (identification of the entity and the volume of quotas or credits held).

To ensure transparency and prevent duplication, GHG quotas and carbon credits must be registered, issued domestic codes, and deposited centrally. The coding process will be unified across the national registration system, ensuring that each quota and carbon credit carries a unique, non-duplicable identification number before entering the market.