Vietnam Carbon Market Forum 2025

Vietnam Carbon Market Forum 2025 aims to address the growing demand for information on carbon market-related issues, helping the private sector  understand the mechanisms, policies, and roadmap for establishing and operating the market.

Vietnam Carbon Market Forum 2025 welcomed representatives from the Department of Climate Change and other specialized departments on carbon markets from the Ministry of Finance and Ministry of Industry and Trade. Additionally, the forum featured representatives from international organizations, investment funds, banks, consulting service providers, industry associations, and businesses engaged in the carbon market.

Vietnam has legal frameworks for the Carbon Market

Speaking at the forum, Mr. Tang The Cuong, Director General of the Department of Climate Change, highlighted that under Decision No. 232/QĐ-TTg, signed by the Prime Minister on January 24, 2025, the roadmap for the carbon market in Vietnam is divided into three phases. The first phase, to be completed by June 2025, focuses on developing the legal framework and technological infrastructure. From June 2025 to the end of 2028, the market will undergo a pilot phase. Starting in 2029, the market will officially operate nationwide.

Regarding institutional frameworks, Vietnam has issued the 2020 Law on Environmental Protection, which adopts a "transition from brown economy to green economy" approach. The Ministry of Agriculture and Environment is collaborating closely with the Ministry of Finance to develop a decree on domestic carbon trading platforms, as well asstatutes and regulations on international emissions trading under the Paris Agreement framework.

"The Vietnamese ministries and sectors aim to rapidly develop the carbon market and disseminate carbon pricing tools, such as carbon taxes and carbon credit exchange mechanisms," said Mr. Cuong.

Carbon pricing tools also play a crucial role in contributing to carbon pricing frameworks, including both compliance and voluntary carbon markets. The development of the carbon market will encourage the adoption of low-emission technologies in Vietnam's market.

The Department of Climate Change leader also emphasized that Vietnam's private sector is eager to engage in the green transition, particularly in climate finance and sustainable initiatives.

The private sector plays a crucial role in forming and developing the carbon market

Ms. Elvira Morella, Country Advisory and Economics Manager (IFC), emphasized the significant role of the private sector in driving innovation and sustainable development practices, achieving net-zero emissions goals and climate targets for 2050. Over 2,000 companies worldwide have committed to achieving Net Zero under a global agreement.

The International Finance Corporation (IFC) has provided financing to Vietnamese enterprises in agriculture and infrastructure development sectors, with a total commitment of approximately $2 billion annually, focusing on green projects and sustainable initiatives.

Agreeing with the IFC representative, Ms. Sibylle Bachmann, Head of the Cooperation at the Embassy of Switzerland in Vietnam, also highlighted the essential role of the private sector. She noted that national territories do not limit greenhouse gas emissions and require global coordination.

From 2025 to 2028, climate finance will be a priority and central to cooperation with Vietnam. Switzerland is committed to supporting Vietnam in achieving its Net Zero goal. Ms. Bachmann expressed hope that Vietnamese enterprises would take a proactive approach, emphasizing the need to establish a transparent market, adopt innovation, and translate global climate targets into actions.