Viet Nam Officially Issues Regulations on the Domestic Carbon Exchange
On January 19, 2026, the Government officially signed and issued Decree No. 29/2026/NĐ-CP on the domestic carbon exchange, representing a significant step forward in the formation and operation of Viet Nam’s carbon market. The Decree provides a comprehensive legal foundation for activities related to greenhouse gas emission allowances and carbon credits to be implemented under market-based mechanisms, with unified state management.
Under the Decree, the domestic carbon exchange will carry out key operations including registration, issuance of domestic codes, custody, transfer of ownership, trading, and settlement of eligible greenhouse gas emission allowances and carbon credits. The trading system will be organized and operated by the Hanoi Stock Exchange, while the Viet Nam Securities Depository and Clearing Corporation will be responsible for custody and settlement, ensuring that transactions are conducted in a transparent, secure, and orderly manner.
The formal recognition of carbon as a tradable commodity helps standardize the exchange of emission allowances and carbon credits, while improving market liquidity and reducing risks for market participants. Emitting enterprises are provided with greater flexibility to comply with emission obligations and optimize costs through allowance trading, while emission-reduction and carbon-removal projects gain opportunities to convert environmental efforts into tangible economic value.
From a long-term perspective, Decree No. 29/2026/NĐ-CP clearly reflects the Government’s strategic orientation of integrating environmental protection policies with market instruments and the financial system. The domestic carbon exchange is expected to become a key driver for investment in clean technologies, energy transition, and sustainable development, while supporting Viet Nam in gradually realizing its commitment to achieving net-zero emissions.
For the full text of the Decree, please refer here.
