Vietthink recently welcomed and had a discussion with Expert Dang Hong Hanh - Co-founder and CEO of the Energy and Environment Consulting JSC (VNEEC) about the carbon market in Vietnam, the domestic and international legal challenges regarding the establishment and operation of this market at the moment and in the future.

With the experience and reputation of VNEEC in successfully consulting hundreds of projects and transactions related to domestic and international carbon credits, Ms. Dang Hong Hanh shared a lot of knowledge and practical experience about the compliance carbon market and the voluntary carbon market, the factors and operating principles of these two markets; at the same time, she shared about the existing and forecasted legal obstacles for the carbon market in Vietnam.

The main contents of the meeting included:

• Overview of international climate policies, Vietnam’s commitments to climate change, and domestic policies related to the carbon market.
• Basic concepts of the mandatory and voluntary carbon markets, updates on the carbon credit creation mechanism, as well as principles and guidelines for developing carbon offset credit projects.
• Carbon pricing tools, key design elements, and operating principles of ETS and carbon credit trading platforms.
• Major legal obstacles in implementing the carbon market in Vietnam, from the lack of a comprehensive legal framework to difficulties in enforcement and potential legal disputes.

Many other legal issues were also deeply discussed by Expert Dang Hong Hanh and the lawyers of Vietthink Law Firm, such as: Determining the legal nature of carbon credits to build and improve laws related to transactions on carbon market’s being compliance with Vietnam’s legal system and international law; Legal regulations that need to be reviewed, adjusted, and supplemented related to carbon projects and transactions; Predicting market access barriers and the development of international transactions before and after Vietnam officially issues regulations and operational rules for carbon credits (expected by the end of2027) and officially operates the carbon credit trading platform (from 2028);…

The representatives of VNEEC and Vietthink also discussed on expanding cooperation in promoting, consulting, and supporting domestic and international investors and businesses in participating in the carbon market in the near future, and promoting the cooperation of two parties in research, policy, and legal consulting on the carbon market in the near future.

Vietthink News.