Regulations on the Exchange and Transfer of Emission Reduction Credits

This Decree regulates the exchange of greenhouse gas emission reduction results and carbon credits with international partners to implement the Paris Agreement under the United Nations Framework Convention on Climate Change, support the achievement of national greenhouse gas emission reduction targets, and other greenhouse gas emission reduction objectives.

This Decree applies to agencies and organizations engaged in the international exchange of greenhouse gas emission reduction results and carbon credits.

Principles for the International Exchange of Greenhouse Gas Emission Reduction Results and Carbon Credits

This Decree stipulates that international trading of greenhouse gas emission reduction results and carbon credits must ensure:

a) Compliance with the provisions of the Paris Agreement; support for development, technology transfer for greenhouse gas emission reduction, enhancement of business competitiveness, and promotion of low-carbon economic development in Vietnam;

b) Prioritizing the implementation of greenhouse gas emission reduction targets in Vietnam’s Nationally Determined Contribution (NDC) and greenhouse gas emission reduction targets under international treaties and commitments;

c) Ensuring national interests and harmonizing the interests of all participating parties, while contributing to the sustainable development of local communities where the programs and projects are implemented.

International exchanges of greenhouse gas emission reduction results and carbon credits between Vietnam and international partners must be recorded and published on Vietnam’s National Registry System.

The Decree stipulates that the Ministry of Agriculture and Environment shall issue a written approval for the international transfer of greenhouse gas emission reduction results and carbon credits after such results and credits have been issued.

Greenhouse gas emission reduction results and carbon credits that have been revoked or have expired may not be transferred internationally.

Corresponding adjustments to the volume of internationally transferred greenhouse gas emission reduction results (abbreviated as ITMO) between Vietnam and international partners are carried out in accordance with the provisions of the Paris Agreement.

International Transfer Ratio

Regarding the international transfer ratio, the Decree stipulates as follows:

1. In cases of international transfer with corresponding adjustments, the maximum transfer ratio for greenhouse gas emission reduction results and carbon credits issued for the period during which such results and credits were generated is specified as follows:

a) 90% for programs and projects involving greenhouse gas emission reduction measures and activities listed in Category 01 of Annex I attached to this Decree;

b) 50% for programs and projects involving greenhouse gas emission reduction measures and activities listed in Category 02 of Annex I attached to this Decree.

2. In cases where international transfers are not correspondingly adjusted, the maximum transfer ratio is 90% of the greenhouse gas emission reduction results and carbon credits issued for a phase of greenhouse gas emission reduction results and carbon credits for all programs and projects.

The remaining greenhouse gas emission reduction results and carbon credits after international transfer may be used for domestic trading.

Based on actual conditions, the sector-managing ministry shall propose adjustments and additions to the list of measures and activities for international transfer of greenhouse gas emission reductions in Annex I attached to this Decree, and submit them to the Ministry of Agriculture and Environment for compilation and reporting to the Prime Minister for consideration and decision.

Sale of greenhouse gas emission reduction results and carbon credits

This Decree stipulates that the competent authority overseeing public investment programs and projects shall decide on the sale of greenhouse gas emission reduction results and carbon credits from such programs and projects.

The sale of greenhouse gas emission reduction results and carbon credits from public investment programs and projects must be subject to the opinions of the sector-managing ministry, the Ministry of Agriculture and Environment, the Ministry of Public Security, and relevant agencies and organizations.

The agencies and organizations consulted are responsible for providing a written response within 15 working days from the date of receiving the request for consultation.

Revenue generated from the trading of greenhouse gas emission reduction results and carbon credits arising from public-private partnership (PPP) investment projects shall be recognized as revenue of the PPP project and managed in accordance with the laws on public-private partnership investment.

For PPP projects that have signed a project contract and/or have a financial plan and wish to trade greenhouse gas emission reduction results and carbon credits, the contracting authority and the investor shall amend the PPP project contract and/or the financial plan.

Revenue generated from the sale of greenhouse gas emission reduction results and carbon credits from public investment programs and projects constitutes state budget revenue and shall be managed and used in accordance with the provisions of the law on the state budget.

This Decree shall take effect on May 19, 2026.