On November 4, 2025, in São Paulo, Brazil, the “Carbon Market Development Alliance” initiated by countries including France, Kenya, Singapore, the United Kingdom and Panama, officially announced a set of “Shared Principles” to promote the use of high-quality carbon credits by businesses. This marks an important step forward, not only for climate negotiators, but also for the global private sector.
This is not simply a press release, but a strong signal of shaping a transparent, credible and efficient playing field for carbon markets. For Vietnam, a country in the process of building a domestic carbon market and a strong commitment to Net Zero, this move brings both opportunity and urgent need for change.
A consistent international legal framework
The launch of the Coalition to Grow Carbon Markets at London's Climate Week 2025 and subsequent Common Principles addresses a major bottleneck in the voluntary carbon market (VCM) over the years: inconsistency and lack of trust.
Businesses at the forefront of green transformation have long sought to use carbon credits as a complementary tool to direct emissions reduction efforts, but they have encountered a “matrix” of standards and concerns about the actual quality (integrity) of these credits.
The Common Principles, built around six core pillars – including using carbon credits as a complement to decarbonisation efforts, ensuring rigorous quality standards, transparency in reporting, and supporting market development – are the answer for businesses. They provide companies with the clarity and confidence they need to invest in credible carbon credits as part of a credible decarbonisation plan.
As the release states, the goal is to “unlock capital for development, support economic activity, and accelerate progress towards global climate goals.” This is welcomed by a range of reputable organizations such as the World Business Council for Sustainable Development (WBCSD), the Integrity Council for Voluntary Carbon Markets (ICVCM), and the World Bank.
Orientation for Vietnamese enterprises: From compliance to leadership
As a long-time activist in the field of sustainable energy and climate in Vietnam, I see this as a positive push with clear direction for Vietnamese businesses.
1. Affirm the role of "Supplement", not "Replacement":
The first and most important principle states that carbon credits can only be used after a business has made maximum efforts to reduce emissions directly in its value chain. This is a wake-up call for any mindset that wants to “buy exemptions” easily. The direction for Vietnamese businesses is clear: The top priority is to decarbonize their core operations—from energy efficiency, renewable energy, to the circular economy.
2. Quality is the key to unlocking capital flow:
Vietnam’s carbon market is in its formative stages. The alliance of major countries’ emphasis on “high-integrity” and “rigorous quality standards” is an important filter. Vietnamese businesses (both sellers and buyers of credits) need to prepare for a playing field that requires absolute transparency and accurate measurement, reporting and verification (MRV).
Businesses that proactively adopt international standards and these Common Principles will have a major advantage in attracting green finance flows and participating in global supply chains.
3. Opening up opportunities for naturally beneficial and socially beneficial solutions:
The new principles also emphasize “fair value and social benefits”. This is particularly important for Vietnam, a country with great potential for nature-based solutions (NbS) such as forest protection and development, low-carbon agriculture. Instead of focusing solely on price, the market will shift to assessing co-benefits – such as improving community livelihoods, conserving biodiversity. This is an opportunity for Vietnam’s carbon projects to create dual value.
The Future of Carbon Markets: An Action Plan
The coalition went beyond principles and put forward a “Plan of Action” that runs through to COP33, signaling a long-term commitment to translating principles into real policy and funding flows.
For Vietnamese businesses, now is the time to act. While waiting for domestic policy to be finalized, pioneering businesses should proactively research and integrate these General Principles into their sustainability strategies and decarbonization plans.
The fact that leading countries, including Singapore – an important financial and trade hub in the region – co-chair this alliance, further demonstrates the irreversibility of the trend. Carbon markets are no longer a distant concept, but an essential financial and technical tool on the road to Net Zero.
This international alignment will help make the global carbon market (both voluntary and compliant under Article 6 of the 2015 Paris Agreement) stronger, more credible, and ultimately, truly serve our most ambitious goal: keeping a sustainable future within reach. Vietnamese businesses need to seize this opportunity to not only comply but also proactively create advantages and lead in the green transition.
To help businesses better understand the impact and how to prepare, GREEN IN Vietnam organizes a WEBINAR: EMISSION REDUCTION PLANNING - PROCESS AND MEASURES FOR BUSINESSES
Time: 9:30 a.m. – 11:00 a.m., November 19, 2025
Format: Online via Zoom
Register now to capture the trend – lead the green transformation
Register now: https://bit.ly/47V0ctA