Vietnam officially launches first carbon trading exchange

Vietnam officially launched its carbon trading exchange on Monday, recording its first transactions in greenhouse gas emission allowances as the country moves to establish a domestic carbon market aimed at supporting its net-zero emissions goals.

The pilot market began trading greenhouse gas emission allowances, listed under the code VN2025. During the opening session, allowance prices reached as high as VND136,000 ($5.17) per ton of carbon dioxide equivalent (CO2e) before closing at VND130,000 ($4.95) per ton.

More than 1,200 tons of CO2e were traded on the first day, with a total transaction value of VND161.7 million ($6,150), according to market data.

Greenhouse gas emission allowances represent the maximum amount of emissions that companies are permitted to release over a specified period.

Vietnam has allocated more than 511 million tons of CO2e in emission allowances for the 2025-2026 period across three of its highest-emitting sectors: thermal power, steel, and cement.

Under the cap-and-trade mechanism, companies whose emissions exceed their allocated quotas must purchase additional allowances from businesses with surplus allocations or use eligible carbon credits to offset excess emissions. Carbon credits can account for up to 30% of a company’s allocated emissions quota.

Trading data are published on the Hanoi Stock Exchange (HNX) website, with end-of-day market results updated after each session.

Speaking at the launch ceremony, Nguyen Anh Phong, HNX chairman, said six securities companies would participate in the carbon market during its pilot phase.

The Department of Climate Change (DCC) under the Ministry of Agriculture and Environment recently said a total of 92 companies from carbon-intensive industries will participate in the pilot market, including major industrial groups such as steelmaker Hoa Phat (HoSE: HPG), Formosa, Vietnam Electricity (EVN), PV Power (HoSE: POW), and cement producer Vicem.

Vietnam plans to operate the exchange on a pilot basis through 2028 before launching a full-fledged carbon market in 2029. Trading fees will be waived for participants during the pilot.

The carbon market forms part of Vietnam’s broader climate strategy as the country seeks to meet its commitment to achieve net-zero greenhouse gas emissions by 2050 while introducing market-based mechanisms to reduce emissions from carbon-intensive industries.