Issues Vietnamese businesses need to prepare to participate in the carbon market from a legal perspective
Issues Vietnamese businesses need to prepare to participate in the carbon market from a legal perspective
The carbon market in Vietnam is gradually taking shape, opening up many opportunities and challenges for businesses. In a recent interview, Attorney Truong Tu Long, a policy and legal expert, shared the issues that businesses need to prepare for in order to be ready to participate in the future carbon market.
Timelines that businesses under Decision 13/2024/QD-TTg need to remember
- Greenhouse Gas Inventory for 2024: This is the first step for a business to determine its emissions.
- Submit initial inventory report: Deadline is on 31/03/2025.
- Emissions reduction planning for the period 2026-2030: Submit plan before date 31/12/2025.
Understanding the carbon market
Lawyer Truong Tu Long emphasized that, to participate in the carbon market, businesses need to:
- Understand correctly and fully carbon market regulations in Vietnam.
- Avoid these common misunderstanding on carbon credits, emission quotas, and how they are traded in the market.
For 03 industries: Cement, Iron and Steel and Thermal Power
Official implementation phase and new requirements from 2028
After the pilot phase with 03 industries, from year 2028, The Government will add enterprises in other industries to the list. Emissions Trading System (ETS)This requires businesses in other fields to also prepare early, including:
- Strengthening human resources capacity: The responsible department needs to have specialized knowledge and skills to effectively implement emissions management and transactions.
- Optimize strategy: Leveraging the carbon market to maximize profit , and cost minimization.
Preparing for a sustainable future
Participating in the carbon market is not only about complying with the law but also an opportunity for businesses to enhance their position and affirm their commitment to sustainable development.
👉 See more of Lawyer Truong Tu Long's sharing in the interview video here!