The scheme is being run by the Southeast Asia Energy Transition Partnership as a result of an MoU between the DCC, under the Ministry of Natural Resources and Environment, and the United Nations Office for Project Services.

The roadmap for implementing the carbon market is specified in Decree No.06/2022/ND-CP, dated January 2022. From now until the end of 2027, the Ministry of Finance, the Ministry of Natural Resources and Environment, and other relevant ministries will develop regulations on carbon credit management, greenhouse gas emission quotas, and on operating the carbon credit trading floor.

From 2025, a carbon credit exchange pilot scheme will also be established to raise awareness about the development of the carbon market and its related mechanisms.

Mai Kim Lien, deputy director of the DCC

Mai Kim Lien, deputy director of the DCC, said, “The successful establishment and effective regulation of an ETS in Vietnam will require extensive capacity-building initiatives and activities aimed at increasing ETS literacy among relevant stakeholders, including policymakers in the country.”

“Therefore, the main objective of this initiative is to develop and organise training courses on the ETS for stakeholders including policymakers, research institutes, universities, financial institutions, media representatives, and especially for the large-volume emitters that will be covered under Vietnam's ETS in the future,” Lien added.

The training courses will utilise a carbon market simulation tool tailor-made for Vietnam and provide knowledge on the ETS through a web-based platform to promote readiness for the future. In addition, policy recommendations for the design and implementation of an ETS in Vietnam will be developed based on the analysis of the lessons learned from the ETS used for energy transition.

The scheme will be implemented by a consortium consisting of Energy and Environment Consultancy JSC, South Pole Carbon Asset Management, and Vietnam Technology Solutions JSC from July 2023 to January 2025.

National climate policy expert and team leader of the consortium, Dang Hong Hanh, said, “The team will conduct a carbon market master class for key government officials and large emitters in Hanoi and Ho Chi Minh City, so they can learn and exchange knowledge and experiences of the ETS.”

The training courses will run between now and November 2024.