Viet Nam has made significant progress in establishing the legal and institutional framework for the domestic carbon market to achieve its greenhouse gas (GHG) emission reduction targets and net-zero emissions by 2050. The Law on Environmental Protection 2020, together with Decree No. 06/2022/ND-CP and Decree No. 119/2025/ND-CP (as amended and supplemented), has laid the foundation for the development of an Emissions Trading System (ETS) and mechanisms for the use of carbon credits for emission offsetting.
However, several key regulatory gaps remain. Specifically, Viet Nam has not yet issued detailed regulations on the international transfer of mitigation outcomes, has not established national standards for carbon credit issuance, and lacks a comprehensive framework for Monitoring, Reporting, and Verification (MRV). Now that the global rules under Article 6 of the Paris Agreement have been finalized, the establishment of a dedicated framework to manage international transfers of mitigation outcomes and carbon credits has become urgent, to ensure alignment with domestic regulations and international commitments.
To comprehensively address these legal gaps, on April 1, 2026, the Government issued Decree No. 112/2026/ND-CP on the international transfer of GHG emission mitigation outcomes and carbon credits. This is a key legal instrument establishing the regulatory framework for Viet Nam’s integration into the global carbon market.
Decree No. 112/2026/ND-CP represents a significant breakthrough and directly addresses previous bottlenecks in the international transfer of GHG emission mitigation outcomes and carbon credits, with several key provisions as follows:
- Institutionalizing Paris Agreement mechanisms: Provides detailed guidance on international transfers under Article 6.2, the Article 6.4 mechanism of the Paris Agreement, as well as independent carbon standards.
- Designation of the focal authority: The Ministry of Agriculture and Environment is assigned as the management body and the national authority responsible for issuing Letters of Authorization for international transfers.
- Strict control of international transfer limits: For transfers involving corresponding adjustments, the maximum transfer rate of mitigation outcomes and carbon credits is capped at 90% of credits for programs and projects under the Positive List (List No. 01) and 50% for mitigation measures under the Positive List (List No. 02).
Throughout the preparation process, the Technical Assistance “Paris Agreement Article 6 Operationalisation and Carbon Credit Offsetting Standards” funded by the Southeast Asia Energy Transition Partnership (ETP) and managed by the United Nations Office for Project Services (UNOPS), has contributed recommendations and technical inputs to support the development of this Decree. Through a consortium of consultants including the Energy and Environment Consultancy Joint Stock Company (VNEEC), Green Climate Innovation Company Limited (GreenCIC), South Pole, and Perspectives Climate Group, the Technical Assistance synthesized international experience, assessed Viet Nam’s readiness, and contributed technical review comments to support to support policymakers in refining the regulatory framework and enhancing its transparency and credibility.
The issuance of Decree No. 112/2026/ND-CP on the international transfer of GHG mitigation outcomes and carbon credits, effective from May 19, 2026, not only strenthens the legal framework for Viet Nam’s carbon market but also demonstrates effective collaboration between the Government, international organizations, and the private sector in advancing climate commitments. At the same time, it opens up opportunities to access international carbon finance to support the country’s net-zero target and socio-economic development.
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