Scenario: a firm holding VCS credits from a solar project asks: “instead of selling abroad, can I sell on the domestic exchange?” — while another wanting credits to green its sustainability report asks: “where do I buy lawfully?” Both are asking about the domestic carbon exchange — and the answer hinges on distinguishing compliance from voluntary markets.
Two markets, one exchange?
Vietnam’s carbon market is designed with two segments: the compliance market — trading emission allowances state-allocated to covered firms (2025–2026 pilot: thermal power, steel, cement); the voluntary market — trading carbon credits from reduction projects, bought voluntarily for offsetting and ESG pledges. Decree 06/2022/ND-CP frames a carbon-credit exchange — intended to serve both segments: where firms surrender/trade allowances and where voluntary credits list and trade transparently instead of today’s bilateral deals. Timeline: pilot in 2025, official operation from 2026 (per Decree 119/2025/ND-CP).
Who can trade, what trades?
In principle, the domestic exchange targets: sellers — project owners holding credits (from domestic projects, under recognised standards), surplus-allowance firms; buyers — short-allowance firms, voluntary buyers offsetting ESG/net-zero pledges, intermediaries; products — emission allowances and carbon credits (listed, clearly identified on the National Registry). The key for the voluntary segment: exchange-traded credits must meet recognised standards — not every credit lists; and domestic-compliance credits must be distinguished from export credits (NDC/Article 6 implications) — different rules per stream. Listing conditions, membership and trading rules continue to be issued through the pilot — firms should follow rather than speculate.
Practical meaning for businesses
A fully operating domestic exchange brings three values: price transparency — public reference prices replacing unverifiable bilateral deals; liquidity — domestic sellers no longer depend solely on foreign buyers, buyers gain a trusted venue; easier compliance — short firms get an official place to buy. Prepare now: credit-holding projects — complete dossiers, register under recognised standards, ready to list; prospective buyers — define need (compliance vs voluntary), budget, and learn membership rules; everyone — track guidance through the 2025 pilot. The domestic exchange doesn’t replace international markets — but it’s the “home ground” every Vietnamese carbon player should know how to play.
Conclusion
The domestic carbon exchange (Decree 06/2022 framework; pilot 2025, official 2026 per Decree 119/2025) is designed for both segments: compliance (allowances) and voluntary (credits). For firms it means transparent prices, better liquidity, easier compliance — Vietnam’s carbon market “home ground”. Sellers prepare listing dossiers, buyers define needs — and everyone tracks the pilot rules as they mature.
Frequently asked questions
1. What trades on the domestic exchange?
Both: emission allowances (compliance) and carbon credits (voluntary).
2. When does the exchange operate?
Pilot in 2025, official operation from 2026 (Decree 119/2025).
3. Who can trade?
Credit-holding project owners, long/short allowance firms, voluntary buyers, intermediaries — per membership rules.
4. Which credits can list?
Credits meeting recognised standards, identified on the National Registry; domestic vs export streams differ.
This article has been quality-reviewed by the FLAW AI Legal Council
Frequently Asked Questions
What trades domestically?
Allowances (compliance) and carbon credits (voluntary).
When does it operate?
Pilot 2025, official from 2026.
Who can trade?
Project owners, allowance firms, voluntary buyers, intermediaries.
Which credits list?
Recognised standards, National Registry identified.
