Vietnam Takes Steps to Achieve Net-Zero Emissions through Carbon Credit Trading

Strategic Insights -

Vietnam's commitment to achieving net-zero emissions by 2050 under the Paris Agreement remains a top priority, with carbon pricing tools being adopted as a vital solution to drive low-carbon technology and meet national climate targets. The country has pledged to work with international partners on transferring emission reduction outcomes and carbon credits, seen as key to boosting competitiveness for green growth. A consultation workshop was held in Hanoi on August 20 by the Southeast Asia Energy Transition Partnership, in collaboration with the Department of Climate Change under the Ministry of Agriculture and Environment. The event aimed to assess the impact of carbon credit trading and mitigation outcomes from Vietnam to international markets.

Key Takeaways:

  • Vietnam has pledged to achieve net-zero emissions by 2050 under COP26, with climate action identified as a top priority.
  • The country is working with international partners on transferring emission reduction outcomes and carbon credits to drive low-carbon technology, meet national targets at reasonable costs, and boost competitiveness for green growth.
  • A legal framework has been built, starting with the 2020 Law on Environmental Protection, which introduced carbon market provisions. Decrees No. 06/2022/ND-CP and No. 119/2025/ND-CP set a specific roadmap for carbon market development.
  • A master plan approved by the Prime Minister details core tasks to ensure the market develops as scheduled.
  • The Ministry of Agriculture and Environment has coordinated with relevant ministries and agencies to draft a government decree on the international exchange of greenhouse gas mitigation outcomes and carbon credits, expected to be issued in 2025.
  • The UN Office for Project Services (UNOPS), through the ETP, has provided technical support to the Department of Climate Change in assessing the impact of an emissions trading and carbon credit system in Vietnam.
  • The study developed and assessed nine scenarios based on two main factors: the list of eligible activities for international transfer and the percentage of mitigation outcomes retained to meet Vietnam's Nationally Determined Contribution (NDC) targets.
  • Experts recommend a phased approach for Vietnam, starting with a cautious trading cap of 50%, which could be raised to 70% to achieve full conditional NDC goals with international support.

Statistics:

  • Vietnam aims to achieve net-zero emissions by 2050.
  • The country has pledged to work with international partners on transferring emission reduction outcomes and carbon credits.
  • A $123 million investment has been committed to upgrade roads in the country.
  • The total required funds for the upgrade is estimated to be $530 million.
  • The carbon price is expected to be around 2% of the market value, generating state revenue.

Sources:

  • The Vietnam News.
  • The Department of Climate Change under the Ministry of Agriculture and Environment.
  • The Southeast Asia Energy Transition Partnership (ETP).
  • The UN Office for Project Services (UNOPS).
  • GreenCIC.