What are regulations on certification of eligible carbon credit, GHG emission quotas exchanged on domestic carbon market in Vietnam?

What are regulations on certification of eligible carbon credit, GHG emission quotas exchanged on domestic carbon market in Vietnam?

Pursuant to Article 18 of the Decree 06/2022/NĐ-CP stipulating certification of eligible carbon credit, GHG emission quotas exchanged on domestic carbon market in Vietnam as follows:

1. The Ministry of Natural Resources and Environment shall certify carbon credits, GHG emission quotas that are traded on the exchange including:

a) Carbon credit amount collected from programs and projects according to the domestic and international carbon exchange and offsetting mechanisms subject to the law and the international treaties to which the Socialist Republic of Vietnam is a signatory.

b) GHG emission quotas allocated as prescribed in Clause 2 Article 12 hereof.

2. Procedures of certification

a) The organization or individual that wish to have certification of traded carbon credits or GHG emission quotas as prescribed in Clause 1 of this Article shall submit an application according to Form No. 01 of Appendix V issued herewith to the Ministry of Natural Resources and Environment through online public service system for certification;

b) Within 15 working days, the Ministry of Natural Resources and Environment shall organize verification, issue the certificate and send a notification to the applicant; if the application is rejected, explanation must be provided.

3. The certificate of traded carbon credits or GHG quotas shall be issued according to Form No. 02 of Appendix V issued herewith.

What are regulations on exchange of GHG emission quotas and carbon credits on domestic carbon market in Vietnam?

Pursuant to Article 19 of the Decree 06/2022/NĐ-CP stipulating exchange of GHG emission quotas and carbon credits on domestic carbon market in Vietnam as follows:

1. The exchange of GHG emission quotas and carbon credit shall be carried out on the CTX and domestic carbon market under regulations.

2. Carbon credits and GHG emission quotas allowed to be traded

a) GHG emission quotas prescribed in Clause 2 Article 12 are allowed to be traded on CTX. 01 GHG emission quota unit equals 01 tonne of CO2 equivalent;

b) Carbon credits collected from programs and projects according to the carbon exchange and offsetting mechanisms are allowed to be offset against GHG emission quotas on the trading floor. 01 carbon credit equals 01 tonne of CO2 equivalent;

3. Auctions, transfer, borrowing, return of GHG emission quotas and use of carbon credits to offset against GHG emissions

a) Facilities may auction to own more GHG emission quotas in addition to the amount of GHG emission quotas allocated in the same commitment period;

b) Facilities may carry forward unused of GHG emission quotas in the previous year to the following years within the same commitment period;

c) Facilities may borrow and use GHG emission quotas allocated to the following year for the previous year within the same commitment period;

d) Facilities may offset carbon credits from projects under the carbon exchange and balancing mechanisms against GHG emissions exceeding the GHG emission quotas allocated in the same commitment period; The amount of carbon credits for offsetting must not exceed 10% of the total GHG emission quota allocated to the facilities;

dd) The allocated GHG emission quotas will be automatically withdrawn by the Ministry of Natural Resources and Environment when a facility stops operating, is dissolved or goes bankrupt;

e) The State encourages facilities to voluntarily return the unused GHG emission quotas for the purpose of contributing to the achievement of the national GHG emission mitigation;

g) At the end of each commitment period, facilities must pay for GHG emissions exceeding the allocated GHG emission quotas after auction, transfer, loan, use of carbon credits for offsetting. Besides of payment, the amount of GHG emissions exceeding the GHG emission quotas allocated will be balanced with the GHG emission quotas allocated in the following commitment period;

h) The Ministry of Natural Resources and Environment shall provide guidance on auctions, transfer, borrowing, return of GHG emission quotas.

Best regards!