VNEEC supports the final workshop on assessing the impacts of ETS and carbon credit system in Vietnam

On September 23, 2025, in Hanoi, Energy and Environment Consultancy Joint Stock Company (VNEEC), in collaboration with Green Climate Innovation Company Limited (GreenCIC) and South Pole Group, co-organized the Final Workshop on “Impact Assessment of the Emissions Trading System (ETS) and Carbon Credits in Vietnam”. The workshop was held as part of the Technical Assistance “Impacts Assessment of Carbon Credit and Allowance Governance Mechanism in Vietnam”, funded by the United Nations Office for Project Services (UNOPS) through the Energy Transition Partnership (ETP). The program aims to support the Department of Climate Change (DCC) under the Ministry of Agriculture and Environment (MAE) in developing Vietnam’s carbon market. The event brought together representatives from government agencies, research organizations, domestic and international experts to share technical assistance outcomes, international experiences, and discuss future directions for Vietnam’s carbon market development.

Participants at the Workshop

In his opening remarks, Mr. Nguyen Tuan Quang, Deputy Director General of DCC, MAE, stated that the ETS and other carbon pricing instruments have become global trends supporting countries in fulfilling their Paris Agreement commitments. According to the World Bank, as of 2025, there are 37 ETS systems in operation, covering 23% of global emissions and generating USD 69.1 billion in revenue. For Vietnam, the ETS is being gradually developed to implement its NDC and Net Zero 2050 commitments, based on a legal framework comprising the Law on Environmental Protection, Decree No. 06, and Decree No. 119, with a pilot phase planned through 2028 and official operation expected from 2029. He emphasized that the Workshop serves as an opportunity to review the results of technical assistance, exchange policy recommendations, and learn from international experience in preparation for the upcoming pilot phase.

Mr. Nguyen Tuan Quang, Deputy Director General of DCC, MAE

Mr. Pham Nam Hung, representative of DCC, MAE, presented the policy framework and roadmap for the development of Vietnam’s carbon market. After introducing key concepts related to the carbon market, its role and significance in reducing greenhouse gas emissions, he summarized the current legal framework, which includes the 2020 Environmental Protection Law, Decree No. 06/2022, and Decree No. 119/2025. According to Mr. Hung, the pilot phase of the carbon market will be implemented from 2025 to 2028, leading toward official operation after 2030, with core management tools such as emission allowances, carbon credits, a domestic trading platform, and cooperative mechanisms under Article 6 of the Paris Agreement.

Mr. Pham Nam Hung, Representative of DCC, MAE

Ms. Nguyen Hong Loan, Lead Consultant/Climate Policy Expert and Director of GreenCIC, together with Mr. Ho Cong Hoa, Impact Assessment Expert from the Academy of Policy and Development, presented the research findings from the technical assistance program implemented from September 2024 to September 2025.

Ms. Nguyen Hong Loan, Lead Consultant/Climate Policy Expert and Director of GreenCIC

The report focused on analyzing the interactions between domestic ETS management options and international carbon credit trading mechanisms. The research team simulated various scenarios, including coverage scope, allowance allocation methods, and the proportion of offset credits permitted for use. In addition, the team assessed the socio-economic impacts of these scenarios, ranging from enterprise compliance costs and effects on GDP and household consumption to potential revenue from international carbon markets. The policy recommendations aim to ensure a balance between economic benefits and environmental integrity, while emphasizing the need to strengthen institutional capacity for an effective and transparent market operation.

Mr. Ho Cong Hoa, Impact Assessment Expert from the Academy of Policy and Development

Mr. Robert Ritz, economist from the University of Cambridge, shared international lessons on the design and operation of ETS. He provided a global overview of carbon pricing trends through 2030, projecting that carbon prices could double as ETS schemes expand and the Carbon Border Adjustment Mechanism (CBAM) comes into wider implementation. According to Dr. Ritz, Vietnam should closely monitor and assess key design elements such as price floors and ceilings, sectoral coverage, allocation methods, and the use of auction revenues to support the green transition. He also highlighted the implications of the EU’s CBAM, suggesting that Vietnam proactively prepare and consider the development of a similar regional mechanism to safeguard industrial competitiveness.

Ms. Marianne Tan, Deputy Director for Policy and Strategy in the Asia-Pacific region at South Pole, shared international experiences and next steps for managing carbon credit transactions. She emphasized the critical role of host countries under Article 6 of the Paris Agreement, noting that governments should focus on four key tasks: establishing a clear institutional framework; identifying national priorities; developing transparent approval procedures; and strengthening the necessary technical and infrastructure requirements. According to her, an effective operational framework can only be achieved when accompanied by a fair benefit-sharing mechanism, a nationally integrated and internationally connected registry system, and enhanced monitoring and reporting capacities, all of which help build trust with international partners.

Mr. Robert Ritz – economist from the University of Cambridge and Ms. Marianne Tan – Deputy Director for Policy and Strategy in the Asia-Pacific region at South Pole

In his closing remarks, Mr. Do Manh Toan, National Coordinator of ETP, summarized the outcomes of the technical assistance activity titled “Impact Assessment of the Domestic Carbon Market and Options for International Carbon Credit Trading”. He highlighted three key achievements of the program after nearly one year of implementation: providing scientific foundations and quantitative evidence to inform policy development; helping Vietnam identify both opportunities and challenges in participating in the global carbon credit market; and enhancing capacity and stakeholder engagement across sectors.

Mr. Toan also acknowledged the strong leadership of DCC as a crucial factor ensuring the success of the program. He affirmed that ETP will continue to support the MAE through research, legal framework development, business support, and strengthened international cooperation, contributing to Vietnam’s goal of achieving net-zero emissions by 2050.

Mr. Do Manh Toan, National Coordinator of ETP

At the end of the Workshop, participants engaged in an active discussion, emphasizing the importance of strengthening the legal framework, improving infrastructure, and enhancing management capacity to prepare Vietnam for deeper integration into the international carbon market.

As a member of the consortium implementing the Technical Assistance, VNEEC played an important role in connecting experts, sharing research findings, and facilitating policy dialogue, making a practical contribution to the development of Vietnam’s carbon market and its green transition goals.

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