Domestic Carbon Exchange Officially Comes into Operation
The official launch of Vietnam’s domestic carbon exchange marks an important milestone in the formation and development of the carbon market in Vietnam, contributing to the country’s overarching goal of achieving Net Zero emissions by 2050.
Carbon Trading System Ready for Allowance Transactions
On the morning of June 29, following a period of preparation, the trading system of Vietnam’s domestic carbon exchange officially commenced operations at the Hanoi Stock Exchange (HNX) under the allowance code VN2025. The launch of the domestic carbon exchange is part of the implementation of the Scheme on the Establishment and Development of the Carbon Market in Vietnam under Decision No. 232/QD-TTg issued by the Prime Minister.
According to Mr. Nguyen Anh Phong, Chairman of HNX, under the direction of the Vietnam Exchange (VNX) and the State Securities Commission of Vietnam (SSC), HNX has worked closely with the Department of Climate Change under the Ministry of Agriculture and Environment, the Vietnam Securities Depository and Clearing Corporation (VSDC), the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), and other relevant agencies to develop the legal framework, market operation regulations, and systems for registration, trading, and settlement in the carbon market.
To date, the information technology infrastructure connecting HNX, VSDC, the Department of Climate Change, and the designated settlement bank BIDV has been tested and has operated in a stable and seamless manner. Relevant regulations and operational procedures have also been issued.
The initial market participant network includes six securities companies that have met the requirements to participate in the market, along with more than 100 emission facilities included in the list of entities allocated greenhouse gas emission allowances.
First Greenhouse Gas Emission Allowance Lot Traded on the Exchange
Following the inauguration of the carbon exchange, the first allowance transaction was successfully carried out. The trading period for the domestic carbon exchange runs from June 29, 2026 to December 24, 2027, with a total of 511,473,846 allocated allowances and the lowest offer price set at VND 135,000. On the morning of the official launch, the total transaction value exceeded VND 100 million.
Carbon trading on the exchange operates in a manner similar to securities trading; however, it is intended specifically for enterprises that need to buy or sell emission allowances or emission reduction results. If an enterprise emits less than its allocated allowance, the surplus can be sold on the market. Conversely, if an enterprise exceeds its allocated allowance, it must purchase additional allowances to fulfill its compliance obligations.
The official operation of the domestic carbon exchange means that enterprises subject to allowance allocation will need to conduct greenhouse gas inventories in a more rigorous and continuous manner throughout the year. This enables them to determine their actual greenhouse gas emissions and make informed decisions on whether to buy or sell their emission allowances on the carbon exchange. As a result, allocated enterprises can better protect their interests and optimize the cost of complying with emission allowance requirements.
For more detailed information about the carbon market and the carbon exchange, please contact our hotline at 0866.059.659 for support.
