Decree No. 29/2026/ND-CP establishes the formal legal, institutional, and operational framework for Vietnam’s domestic carbon exchange, governing the registration, issuance of domestic codes, ownership transfer, custody, trading, and settlement of greenhouse gas (GHG) emission quotas and carbon credits.
Institutional Arrangements
- Ministry of Agriculture and Environment (MoAE): Operates the National Registration System, registers quotas and credits, issues domestic codes, and manages the central database of owners. It also notifies the list of eligible tradable commodities.
- Hanoi Stock Exchange (HNX): Organises and operates the carbon trading system. It is responsible for monitoring trades, providing transaction results for settlement, and may suspend or resume trading activities when necessary.
- Vietnam Stock Exchange (VNX): Acts as the supervisor for the HNX; it issues operational regulations and monitoring criteria and oversees the conduct of carbon trading members.
- Vietnam Securities Depository and Clearing Corporation (VSDC): Provides custody, clearing, and settlement services.
- State Securities Commission (SSC): Oversees market conduct, selects settlement banks, and coordinates with the MoAE to inspect and supervise the exchange's operations.
Trading and Account Structure
- Mandatory Registration: All GHG quotas and carbon credits must be registered on the National Registration System before they can be deposited or traded on the exchange
- Eligible Instruments: Only quotas and credits approved under Decree No. 06/2022/ND-CP (as amended by Decree No. 119/2025/ND-CP) are eligible for trading.
- Account Requirements: Participants are restricted to using one securities trading account and one securities custody account with authorised members specifically for carbon transactions.
Settlement and Payment
- Instant Settlement: Transactions are settled on the same trading day using an "instant settlement per transaction" method.
- Delivery-versus-Payment (DvP): Payments are processed through approved settlement banks simultaneously with the transfer of quotas/credits between accounts.
Membership and Participation
- Authorised Members: Only licensed securities companies meeting technical and operational requirements set by the VNX and VSDC can act as carbon trading or depository members.
- Monitoring and Reporting: Members are subject to continuous oversight and must report suspicious transactions or technical failures to the relevant authorities.
Fees and Pilot Phase
- Pilot Phase: A pilot operation period is established until 31 December 2028.
- Fee Waiver: During the pilot phase, HNX, VNX, and VSDC are prohibited from charging service fees for carbon market activities.
- Post-Pilot Fees: From 1 January 2029, service fees may be introduced as per standard legal regulations.
