The document stipulates several articles of the Law on Environmental Protection, and maps out a roadmap to the domestic carbon market foundation and development.
From now until the end of 2027, the country will put forward regulations on the management of carbon credits, the exchange of GHG emission quotas and carbon credits, and the operation of a carbon credit exchange.
It will also carry out a pilot mechanism for exchanging and balancing carbon credits in potential areas, guide the implementation of the domestic and international carbon credit exchange and balance mechanisms in accordance with laws and international conventions to which Vietnam is a signatory.
Activities to raise capacity and awareness of carbon market development will be stepped up during this period.
The carbon trade exchange is expected to be put into official operation in 2028.
A carbon credit is a kind of permit that represents one tonne of carbon dioxide removed from the atmosphere. They can be purchased by an individual or, more commonly, a company to make up for carbon dioxide emissions that come from industrial production, delivery vehicles or travel.