Tuesday, September 2, 2025
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Vietnam will allow up to 10% emission offset by carbon credits

According to the proposed Decree amending and supplementing a number of articles of Decree No. 06/2022/ND-CP (dated January 7, 2022) of the Government on greenhouse gas emission reduction, Vietnam is planning to set to allow companies participating in its emissions trading scheme (ETS) to offset up to 10% of their emissions using carbon credits. This move is part of the broader framework Vietnam is developing to regulate greenhouse gas (GHG) emissions and align its carbon market with international standards. The ETS, set to be piloted by 2025 and fully operational by 2028, is seen as a key mechanism to drive innovation in low-carbon technologies and promote a transition to a green economy.

The decision to permit 10% offsetting aligns with Decree No. 06/2022, which outlines the development of Vietnam’s carbon market and regulates the reduction of GHG emissions and the management of carbon credits. The decree specifies that the total amount of carbon credits used to offset emissions must not exceed 10% of an entity’s allocated allowances. This cap ensures that while companies can use offsets to meet part of their obligations, the primary focus remains on reducing emissions at their source.

Furthermore, the Vietnamese government has set a roadmap for the ETS to gradually expand its coverage to multiple sectors, including energy, industrial production, and waste management. The aim is to increase the country’s capacity to achieve its net-zero emissions goal by 2050 while encouraging companies to adopt cleaner technologies.

This development highlights Vietnam’s cautious approach in establishing a domestic carbon market before integrating it with international systems, ensuring that the framework and regulatory mechanisms are robust enough to handle cross-border trading effectively​.

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