The potential for a carbon market in Vietnam is huge, given that the country is expected to generate approximately 10.8 million voluntary carbon credits per year. The growing need for efficient exchange and purchase mechanisms has sparked active discussions on establishing a domestic carbon credit exchange.
Among them, Vietnam’s Standard Chartered Bank has cooperated with the Climate Change Bureau of the Ministry of Resources and Environment and Climate Impact X (CIX) on the 20th to discuss the establishment and operation of a voluntary carbon credit trading platform in Vietnam.
All participating units communicated, discussed, and clarified problems faced by Vietnam's voluntary carbon credit trading platform, as well as the development roadmap of Vietnam's carbon credit market. According to this map, the relevant regulations and trading basis will start to be implemented in 2025. The voluntary carbon credit trading platform will be regarded as a pilot to prepare for the mandatory carbon credit trading platform, officially launched in 2028.
Tang The Cuong, head of the Bureau of Climate Change, said the move aims to improve the centralization, transparency and overall efficiency of related party transactions. Cuong emphasized that in order to successfully implement the above-mentioned plans, preparations in terms of infrastructure, technology, inventory capacity and corporate reporting are required.
According to statistics, a total of 1,912 enterprises across the country are required to compile greenhouse gas emission inventories and meet specific emission quotas. Therefore, the MONRE will propose to the Prime Minister to approve Vietnam’s overall emission quotas for the period from 2026 to 2030. In addition, the Emissions Trading System will be officially implemented in 2028.
Regarding the roadmap for managing all carbon credits, Nguyen Van Minh, Director of Economics and Information at the Climate Change Agency, said that the MONRE will soon establish a national registration system. Under the system, all businesses and organizations that generate carbon credits in Vietnam will be required to register.
In addition, any transactions with foreign exchanges must be reported to governing bodies, such as the MONRE, because such activities can affect the country's emission reduction targets.
Nguyen Thuy Hanh, Deputy General Director of Standard Chartered Bank Vietnam, emphasized that the establishment of a voluntary carbon credit market is an important direction for Vietnam to reach its goal of zero carbon emissions by 2050. Vietnam's potential as a developing market is clear, but to attract foreign direct investment funds, Vietnamese companies and their supply chains must adopt a green and sustainable approach.
From the bank's perspective, she emphasized their commitment to sustainable products and services, while offering free advice to businesses with new investments or plans to reduce emissions. Standard Chartered Bank and CIX have shared the operation experience and mechanism of Singapore's voluntary carbon credit trading platform and recommended the preparatory steps for establishing a voluntary carbon credit trading platform in Vietnam.
Standard Chartered Vietnam has always been a strong partner in the field of environment, society, and corporate governance (ESG), providing customers with sustainable financing support, focusing on helping customers realize transformation and reduce carbon emissions.
The bank has also set a goal of achieving net zero in financial activities by 2050, including reducing emissions in the most carbon-intensive sectors, and mobilizing USD 300 billion for sustainable development by 2030.
