Vietnam’s transition toward net-zero by 2050 is rapidly shifting from policy blueprints into enforceable statutory mandates. Under Decision No. 42/2026/QD-TTg , a total of 2,441 large-emitting facilities across key economic sectors are now required to conduct biennial greenhouse gas (GHG) inventories. For the initial Emissions Trading Scheme (ETS) pilot phase, the scope focuses on approximately 150 key enterprises spanning the thermal power, iron and steel, and cement industries. For these covered entities and project developers, understanding the country’s legal hierarchy is essential for managing compliance risk and unlocking climate finance.
Vietnam has established a clear, multi-tiered legal framework that governs domestic emissions trading and cross-border carbon transfers.
The Statutory Hierarchy Governing Vietnam's Carbon Framework
Vietnam Carbon Forum 2026
1. Decree No. 06/2022/ND-CP: The Bedrock of Domestic Decarbonization
Decree No. 06/2022/ND-CP establishes the foundational rules for national greenhouse gas (GHG) inventory requirements, domestic mitigation, and the roadmap for an Emissions Trading Scheme (ETS).
- Mandatory GHG Inventories: Facilities exceeding statutory emission thresholds must measure, report, and verify (MRV) their baseline emissions under sectoral guidelines (such as Circular 38/2023/TT-BCT for industry/trade and Circular 13/2024/TT-BXD for construction).
- Roadmap to Compliance: Establishes the progression from a pilot system to a legally binding compliance market post-2029.
2. Decree No. 29/2026/ND-CP: Institutionalizing the Domestic Carbon Exchange
While Decree 06 mapped out the policy, Decree No. 29/2026/ND-CP establishes the formal market machinery by integrating carbon trading directly into the national financial market infrastructure:
- Ministry of Agriculture and Environment (MAE): Manages the central National Registry Portal (V-ETS), oversees quota allocations, registers carbon credits, and issues domestic commodity codes.
- Hanoi Stock Exchange (HNX): Operates the centralized secondary trading platform for spot transactions.
- Vietnam Securities Depository and Clearing Corporation (VSDC): Manages primary depository accounts, secondary registration, clearing, and gross transaction settlement.
- Trading Safeguards: Implements a strict pre-funding structure where sellers must hold 100% of allowances/credits and buyers must deposit 100% of settlement cash prior to order matching.
3. Decree No. 112/2026/ND-CP: Cross-Border Transfers Under Article 6
Promulgated to govern the export of carbon credits, Decree No. 112/2026/ND-CP provides the regulatory gateway for international carbon commerce under Articles 6.2 and 6.4 of the Paris Agreement:
Four Guiding Principles: All cross-border exchanges must align with the Paris Agreement, prioritize Vietnam’s domestic Nationally Determined Contribution (NDC) targets, balance local stakeholder interests, and record all transactions on the National Registry.
Corresponding Adjustment (CA) Limits Under Decree 112/2026/ND-CP
To safeguard Vietnam’s Nationally Determined Contribution (NDC) targets from carbon leakage, Decree 112 sets maximum export ceilings for credits transferred abroad with Corresponding Adjustments:
- Category 1 (Priority Sectors — Up to 90% Export): Reserved for deep decarbonization and capital-intensive technologies where foreign climate finance is critical.
- Scope: Offshore wind, geothermal, off-grid solar, green hydrogen/ammonia, Energy Storage Systems (ESS), Direct Air Capture (DAC), CCUS, waste-to-energy, destruction of high-GWP gases (HFCs, SF_6), and Alternate Wetting and Drying (AWD) rice farming.
- Domestic Retention: Minimum 10% must remain in Vietnam.
- Category 2 (Encouraged Sectors — Up to 50% Export): Covers commercially mature or lower-cost mitigation measures.
- Scope: Onshore wind, grid-connected solar, standard biomass power, and basic industrial energy efficiency retrofits.
- Domestic Retention: Minimum 50% must be retained for the domestic compliance market (ETS) to ensure local heavy emitters have an affordable credit supply to meet their statutory 30% offset cap.
The untransferred balance must remain available for domestic compliance or voluntary use.
Strategic Takeaway for Corporate Executives
The regulatory pieces have fallen into place: Decree 06 establishes your compliance obligation, Decree 29 sets up your domestic trading floor, and Decree 112 dictates how surplus credits can access foreign capital.
Enterprises covered under mandatory inventory lists must conduct internal audits now to identify their baseline exposure before compliance surrenders take effect.
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