Vietnam · Pilot emissions trading + carbon exchange

Vietnam: a 268 million tonne pilot cap for 2026, across 110 power, steel and cement facilities

Vietnam caps emissions from 110 power, steel and cement facilities in a pilot that runs to the end of 2028. Allowances are free, and up to 30% may be covered with carbon credits. A domestic carbon exchange on the Hanoi Stock Exchange opened on 29 June 2026; in the pilot, trades are negotiated between the parties.

Hanoi skyline beyond the Red River and Nhat Tan Bridge
Hanoi skyline beyond the Red River and Nhat Tan Bridge. Photo: NKSTTSSHNVN, CC BY-SA 4.0, source. Resized only; no other change.
Summary

In brief

The Prime Minister set pilot caps of 243,082,392 tCO2e for 2025 and 268,391,454 tCO2e for 2026, for 34 thermal power plants, 25 steel and 51 cement facilities.

Allowances are allocated free in the pilot, which runs from 2025 to the end of 2028; the official market, with an auction mechanism, starts in 2029.

Facilities may cover up to 30% of their allocated allowances with eligible carbon credits, borrow up to 15% from the next period, and must surrender by 31 December of the year after each two-year period.

The 2025 and 2026 caps in Decision 263/QD-TTg add up to 511,473,846 tCO2e. VN2025 allowances can trade on the Hanoi Stock Exchange from 29 June 2026 to 24 December 2027; in the pilot, trades are negotiated and exchange fees are waived to the end of 2028.

Data

Caps and coverage in charts

The cap rises from 2025 to 2026, and the list of facilities that must report emissions keeps growing.

Pilot emissions cap by year (tCO2e)

tCO2e075,000,000150,000,000225,000,000300,000,00020252026243,082,392268,391,454

Source: Government Electronic Newspaper of Viet Nam (baochinhphu.vn). Checked 2026-11-12. Decision 263/QD-TTg. Caps for the 2027–2028 period are due to be allocated by 31 October 2027.

Table of the same figures

Facilities that must report a greenhouse gas inventory, by list year

facilities07501,5002,2503,0002022202420261,9122,1662,441

Source: Government Electronic Newspaper of Viet Nam (baochinhphu.vn). Checked 2026-11-12. Only thermal power, steel and cement facilities on these lists receive allowances in the pilot.

Table of the same figures

Facilities receiving 2025–2026 allowances, by sector

facilities015304560Thermal powerIron and steelCement342551

Source: Government Electronic Newspaper of Viet Nam (baochinhphu.vn). Checked 2026-11-12.

Table of the same figures
Chronology

Timeline

Red dates are still ahead.

From the 2013 JCM to the 2029 official market

  • 2013-07-02Viet Nam and Japan sign the JCM bilateral document.
  • 2022-01-07Decree 06/2022/ND-CP sets the framework for GHG mitigation and the carbon market.
  • 2025-01-24Decision 232/QD-TTg approves the carbon market scheme: pilot to 2028, official from 2029.
  • 2025-08-01Decree 119/2025/ND-CP takes effect: allocation method, 30% offset limit, 15% borrowing.
  • 2026-01-19Decree 29/2026/ND-CP on the domestic carbon exchange is issued and takes effect.
  • 2026-02-09Decision 263/QD-TTg sets pilot caps for 2025 and 2026.
  • 2026-02-13Circular 11/2026/TT-BNNMT sets rules for the national registry of allowances and credits.
  • 2026-06-29The domestic carbon exchange opens on HNX with 6 member securities companies; VN2025 allowances become tradable.
  • 2026-12-12Decree 396/2026/ND-CP, a further amendment of Decree 06/2022, takes effect.
  • 2027-10-31Deadline to allocate allowances for 2027–2028.
  • 2027-12-24Last trading day for VN2025 allowances.
  • 2027-12-31Surrender deadline for 2025–2026 emissions.
  • 2029Official market phase; an auction mechanism is to be built and exchange fees start.

Source: Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp); Official Gazette of Viet Nam (congbao.chinhphu.vn); Government of Viet Nam - Legal Documents Portal (vanban.chinhphu.vn); Government Electronic Newspaper of Viet Nam (baochinhphu.vn); Government of Viet Nam (datafiles.chinhphu.vn); Hanoi Stock Exchange (HNX).

Mechanism

How it works

The two-year cycle for a facility in the pilot.

How a pilot facility complies

  1. Step 1

    Allocation

    Free allowances set as 3-year average output × sector-average emissions per unit × an adjustment factor.

  2. Step 2

    Trade

    Buy or sell allowances (1 allowance = 1 tCO2e) on the HNX carbon exchange through a member securities company; in the pilot, trades are negotiated and settled immediately.

  3. Step 3

    Offset and borrow

    Cover up to 30% of allocated allowances with credits; borrow up to 15% from the next period.

  4. Step 4

    Verify

    Third-party-verified inventory results go to the Ministry by 1 December, from 2027.

  5. Step 5

    Surrender

    By 31 December of the year after the period; a shortfall is fined and deducted from the next allocation.

Source: Official Gazette of Viet Nam (congbao.chinhphu.vn); Ministry of Agriculture and Environment (mae.gov.vn).

Coverage

Scope

Who is in the pilot and how allowances are set.

Who is covered

Source: Ministry of Agriculture and Environment (mae.gov.vn); Government Electronic Newspaper of Viet Nam (baochinhphu.vn); Official Gazette of Viet Nam (congbao.chinhphu.vn). Checked 2026-11-12.

Table of the same figures
ItemRule
SectorsThermal power (coal, oil, gas), crude steel, clinker (cement)
Facilities110: 34 thermal power plants, 25 steel and 51 cement facilities
Enterprises92 enterprises own the 110 facilities
Share of emissionsAbout 40% of total emissions from facilities that must report an inventory
Caps243,082,392 tCO2e (2025); 268,391,454 tCO2e (2026)
AllocationFree in the pilot; output-based benchmark A = P × B × T
Adjustment factorT = (1 + g) × (1 − r): sector growth and reduction targets
Reporting list2,441 facilities must report an inventory under the 2026 list
Offsets

Credits and offsets

Which credits count, and what is on the exchange so far.

Carbon credits at a glance

Source: Official Gazette of Viet Nam (congbao.chinhphu.vn); Government Electronic Newspaper of Viet Nam (baochinhphu.vn); Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp). Checked 2026-11-12.

Table of the same figures
ItemStatus
Offset limitUp to 30% of a facility's allocated allowances
VintageReductions from 1 January 2021 onward
Eligible mechanismsDomestic mechanism; bilateral Article 6.2 deals; Article 6.4; the 2025 scheme also names CDM and JCM
JCM with JapanSigned 2 July 2013; 20 projects listed, 14 registered
JCM credits notified35,313 from 13 Viet Nam projects
Reference

All figures

53 figures with numbers, each linked to the official text with the date we checked it.

ItemValueSource (checked)
Pilot emissions cap, 2025243,082,392 tCO2eGovernment Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Pilot emissions cap, 2026268,391,454 tCO2eGovernment Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Change in pilot cap, 2026 vs 2025+25,309,062 tCO2e (+10.4%); calc = f02 - f01, divided by f01Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Facilities receiving pilot allowances (total)110 facilities (34 + 25 + 51)Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Thermal power plants in the pilot34 plantsGovernment Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Iron and steel facilities in the pilot25 facilitiesGovernment Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Cement facilities in the pilot51 facilitiesGovernment Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Decision 263/QD-TTg approving 2025-2026 pilot capsIssued 9 Feb 2026Government of Viet Nam - Legal Documents Portal (vanban.chinhphu.vn) 2026-11-12
Decision 232/QD-TTg: carbon market scheme approvedSigned 24 Jan 2025Government of Viet Nam - Legal Documents Portal (vanban.chinhphu.vn) 2026-11-12
Pilot phase of the carbon market2025 to end-2028Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Official operation of the carbon marketFrom 2029Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Credit types eligible for exchange trading under the 2025 scheme4 sources: domestic mechanism, CDM, JCM, Paris Agreement Article 6Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Decree 29/2026/ND-CP on the domestic carbon exchangeIssued and effective 19 Jan 2026Government of Viet Nam - Legal Documents Portal (vanban.chinhphu.vn) 2026-11-12
Size of Decree 29/2026/ND-CP6 chapters, 35 articlesGovernment Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Exchange service fees during the pilotNone charged to 31 Dec 2028; fees charged from 1 Jan 2029Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Decree 119/2025/ND-CP (amends Decree 06/2022)Issued 9 Jun 2025; effective 1 Aug 2025Government of Viet Nam - Legal Documents Portal (vanban.chinhphu.vn) 2026-11-12
Unit of one allowance1 allowance = right to emit 1 tCO2 or 1 tCO2eOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Vintage rule for tradable creditsCredits for reductions from 1 Jan 2021 onwardOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Offset limitCredits may cover up to 30% of a facility's allocated allowancesOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Borrowing from the next periodUp to 15% of the period's allocation, until 2030; borrowed allowances cannot be tradedOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Banking of unused allowancesAllowed to the next period until end-2030; banked allowances can be tradedOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Surrender deadlineBy 31 December of the year after the allocation period (for 2025-2026: by 31 Dec 2027)Official Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Surrender amountAt least verified direct emissions for the period minus credits used as offsetsOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Penalty for a surrender shortfallAdministrative fine under environmental-protection law, plus the shortfall is deducted from the next period's allocationOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Cancellation of unbanked allowances30 days after the surrender deadline, earlier-period allowances neither surrendered nor banked are cancelledOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Allowance auctionsAuction mechanism to be built and run in the phase from 2029Official Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Allocation formula (Method 01)A = P x B x T: 3-year average output x sector-average emissions per unit x adjustment factorOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Adjustment factor in the allocation formulaT = (1 + g) x (1 - r): sector growth target g and emission-reduction target rOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Product units used for benchmarkskWh for thermal power (coal, oil, gas); tonne of crude steel; tonne of clinkerOfficial Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Allocation deadlines for later periodsBy 31 Oct 2027 for 2027-2028; by 31 Oct 2029 for 2029-2030Official Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Ministries' proposals for the 2027-2028 periodDue to the Ministry of Agriculture and Environment by 30 Jun 2027Official Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Verified inventory reports from allocated facilitiesThird-party-verified results due to the Ministry by 1 December, from 2027Official Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Share of inventory-facility emissions in the first phaseMore than 100 facilities, about 40% of total emissions of facilities required to reportMinistry of Agriculture and Environment (mae.gov.vn) 2026-11-12
Allocation method in the pilotAllowances allocated free of charge (pilot to 2028)Ministry of Agriculture and Environment (mae.gov.vn) 2026-11-12
Carbon exchange launchBegan operation on 29 Jun 2026Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Trading members at launch6 securities companiesGovernment Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
National registry rulesCircular 11/2026/TT-BNNMT of 13 Feb 2026Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Market-wide system testingInternal and market-wide tests in May and June 2026Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Credit groups allowed to trade (Ministry of Finance Legal Department representative, Apr 2026)3 groups: domestic credits, credits under international mechanisms, Paris Agreement creditsGovernment Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
VN2025 trading windowFirst trading day 29 Jun 2026; last trading day 24 Dec 2027Hanoi Stock Exchange (HNX) 2026-11-12
Facilities required to report GHG inventory, 2022 list1,912 facilities (1,662 + 70 + 104 + 76) under Decision 01/2022/QD-TTgGovernment Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Facilities required to report GHG inventory, 2024 list2,166 facilities under Decision 13/2024/QD-TTg (effective 1 Oct 2024)Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Facilities required to report GHG inventory, 2026 list2,441 facilities under Decision 42/2026/QD-TTg (effective 25 Sep 2026)Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Decree 396/2026/ND-CP (further amends Decree 06/2022)Issued 26 Oct 2026; effective 12 Dec 2026Government of Viet Nam (datafiles.chinhphu.vn) 2026-11-12
Draft fine: excess emissions of 5,000 tCO2e or more (proposal, Jun 2026)VND 300-400 million (draft decree, not adopted)Government of Viet Nam - Policy Making portal (xaydungchinhsach.chinhphu.vn) 2026-11-12
Draft fine: excess emissions of 3,000 to under 5,000 tCO2e (proposal)VND 100-300 million (draft decree, not adopted)Government of Viet Nam - Policy Making portal (xaydungchinhsach.chinhphu.vn) 2026-11-12
Draft fine: excess emissions of 1,000 to under 3,000 tCO2e (proposal)VND 20-75 million (draft decree, not adopted)Government of Viet Nam - Policy Making portal (xaydungchinhsach.chinhphu.vn) 2026-11-12
Japan-Viet Nam Joint Crediting Mechanism (JCM)Bilateral document signed 2 Jul 2013Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp) 2026-11-12
JCM projects in Viet Nam20 listed (VN001-VN020): 14 registered, 6 in validationMinistry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp) 2026-11-12
JCM credits notified for issuance, Viet Nam projects35,313 credits from 13 projects (both countries' shares)Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp) 2026-11-12
Latest JCM Joint Committee10th Joint Committee, 16 Oct 2026 (Hanoi and online)Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp) 2026-11-12
Japan-Viet Nam Memorandum of CooperationSigned 2 May 2026Ministry of Economy, Trade and Industry and Ministry of the Environment, Japan (jcm.go.jp) 2026-11-12
Decree 06/2022/ND-CP (base GHG mitigation decree)Dated 7 Jan 2022Official Gazette of Viet Nam (congbao.chinhphu.vn) 2026-11-12
Enterprises receiving pilot allowances92 enterprises owning the 110 facilitiesMinistry of Agriculture and Environment (mae.gov.vn) 2026-11-12
Trading method in the pilotNegotiated (bilateral) trades only, to the end of 2028; the exchange confirms, records ownership and settlesMinistry of Agriculture and Environment (mae.gov.vn) 2026-11-12
Settlement and accountsImmediate settlement (buyer must hold cash, seller the allowances, before matching); one carbon trading account per organisationMinistry of Agriculture and Environment (mae.gov.vn) 2026-11-12
Pilot caps for 2025 and 2026 combined (calc.)511,473,846 tCO2e (243,082,392 + 268,391,454)Government Electronic Newspaper of Viet Nam (baochinhphu.vn) 2026-11-12
Questions

Frequently asked questions

How big is Vietnam's pilot emissions cap?

243,082,392 tCO2e for 2025 and 268,391,454 tCO2e for 2026, set by Decision 263/QD-TTg of 9 February 2026. Together they add up to 511,473,846 tCO2e (our sum).

Which companies are covered?

110 facilities: 34 thermal power plants, 25 iron and steel facilities and 51 cement facilities. The Ministry says the first phase covers about 40% of emissions from facilities that must report an inventory.

How does trading on the carbon exchange work?

The Hanoi Stock Exchange runs the domestic carbon exchange, which opened on 29 June 2026 with 6 member securities companies. Each organisation trades through one carbon trading account at a member. During the pilot, to the end of 2028, only negotiated trades are used: the parties agree price and volume, and the exchange confirms and settles the trade immediately.

How large are the caps, and until when can VN2025 allowances trade?

The 2025 and 2026 caps in Decision 263/QD-TTg add up to 511,473,846 tCO2e (our sum). VN2025 allowances can trade from 29 June 2026 to 24 December 2027. No exchange service fees are charged until 31 December 2028.

Can companies use carbon credits?

Yes. Credits may cover up to 30% of a facility's allocated allowances, for reductions from 1 January 2021 onward.

Are allowances auctioned?

No. They are free during the pilot, which runs to the end of 2028. Decree 119/2025 provides for an auction mechanism in the phase from 2029.

What happens if a facility does not surrender enough?

It is fined under the environmental sanctions law, and the shortfall is deducted from its next allocation. Surrender for 2025–2026 is due by 31 December 2027. A June 2026 draft proposes fines of up to VND 400 million.

Does the JCM with Japan feed into the market?

The 2025 scheme lists JCM credits among those that can trade. The JCM has 20 projects in Viet Nam, 14 registered, with 35,313 credits notified for issuance.

Gaps

Not listed yet

Items we could not confirm in an official text are left out on purpose.

  • Allowances allocated to each facility, and 2025 verified emissions: the official texts we could open do not publish them.
  • The fine actually in force for a surrender shortfall: only a June 2026 draft gives amounts.
  • Exchange price band, lot size and trading hours: HNX trading rules not checked.
  • Prices and traded volumes of VN2025 allowances: not shown; no government body publishes them in the sources we checked.
  • Contents of Decrees 83/2026 and 112/2026, and the Ministry's consolidated text: not opened.
  • The emissions threshold for the inventory list: not found in the texts opened.
  • Facility-level allocations and the 2025 actual emissions — Decision 263 signed PDF is a scanned image (no text layer) and the per-facility allocation decision was not found in official text form.
  • Penalty amount actually in force for surrender shortfalls — Decree 119 only refers to the environmental sanctions decree; the June 2026 fine bands are a draft. The adopted sanctions decree text was not found.
  • Consolidated text 40/VBHN-BNNMT and Decrees 83/2026 and 112/2026 — mae.gov.vn PDF could not be downloaded (server certificate chain not verifiable from this environment); content not read.
  • HNX notice 971/BDKH-TTCB attachment (Department of Climate Change letter) — owa.hnx.vn PDF not downloadable (certificate chain); only the HNX notice text was read.
  • Price band, lot size and trading hours on the carbon exchange — HNX/VNX trading rules not opened.
  • JCM credits held or traded on the Vietnamese exchange — HNX credit list is empty; no official figure for JCM credits used domestically.
  • Facility threshold for inventory (commonly cited 3,000 tCO2e/yr) — Not found in the official texts opened.
Record

Sources