On the morning of 29/6, the joint Ministries of Finance, Agriculture, and Environment announced the launch of Vietnam's carbon exchange. The inaugural transaction involved greenhouse gas emission quotas, code VN2025, with prices reaching 136,000 VND per ton of CO2e.

By 9:16 on the launch day, the exchange recorded a trading volume of 400 tons of CO2e, with a total value of 54 million VND. The most recent transaction price was 136,000 VND per ton.

Domestic carbon exchange transaction information board, 29/6. Photo: Thuy Truong

Greenhouse gas emission quotas represent the maximum amount of greenhouse gases a country, industry, or business is permitted to emit within a specific period, typically one year. The Prime Minister approved a total quota exceeding 511 million tons of CO2e for the thermal power, steel, and cement sectors for the 2025-2026 period.

Under this system, businesses that exceed their allocated emission limits must purchase quotas from companies with lower emissions or acquire carbon credits for offsetting. This offsetting can cover up to 30% of their emission quota. Traded quotas are listed on the Hanoi Stock Exchange website, with results updated at the end of each day. According to the regulations, businesses participating in the market use a securities account at a securities firm (approved to join the carbon exchange) to trade quotas. Similar to securities transactions, buying and selling entities receive immediate notification of successful trades and monthly statements for their cash accounts and quota deposits.

Nguyen Anh Phong, Chairman of the Hanoi Stock Exchange (HNX), the entity operating the carbon exchange, stated that the core objective of the exchange is to create a flexible financial mechanism. This mechanism aims to help businesses optimize emission reduction costs, thereby closely aligning economic benefits with environmental protection responsibilities.

Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, emphasized that the launch is merely an initial step. She highlighted the greater importance of building and developing a stable, transparent, efficient, and sustainable market. She recommended that stakeholders continue to research international experiences to enhance the capacity of intermediary institutions, member securities firms, and service providers, thus gradually developing a carbon market that aligns with integration requirements.

The carbon exchange is projected to operate on a pilot basis until 2028, with official operations commencing in 2029. During the pilot phase, businesses trading on the exchange will be exempt from service fees.

Sharing insights on the sidelines of the event, Doctor Nguyen Phuong Nam, founder and CEO of Klinova Climate Innovation Consulting and Services Company, remarked that the operational carbon exchange enables Vietnamese businesses to seize green transition opportunities more rapidly.

He clarified that while the carbon exchange features two types of commodities: greenhouse gas emission quotas and carbon credits, only greenhouse gas emission quotas are traded during the pilot phase. Doctor Nam added that the carbon credit market develops only when demand arises. For example, businesses would purchase credits if quota supply is insufficient or if the cost of carbon credits is lower. However, he encouraged businesses to participate in the credit market because carbon commodities serve as "indirect certificates" for a business's green activities. "The nature of green financial investment necessitates extensive post-auditing. A project that has generated a carbon market clearly demonstrates this post-auditing process", Doctor Nam explained.

Experts suggest that in such scenarios, revenue from carbon credits will provide additional financing for investment cycles. More importantly, actual emission reductions enable businesses to access green capital, which is significantly greater than the profits derived from selling carbon credits.

Thuy Truong