As part of its effort to cut greenhouse gas (GHG) emissions, the Vietnamese government intends to develop a roadmap to implement market-based carbon pricing tools. The country is considering introducing an emission trading scheme in which emission quotas and credits could be traded by companies. The Ministry of Natural Resources and Environment aims to add the proposed carbon market to the revised draft Law on Environmental Protection, that will be soon reviewed by the National Assembly.
In August 2020, the country updated its Nationally Determined Contribution (NDC), plans to reduce to its GHG emissions by 9% by 2030 compared to the business-as-usual (BAU) scenario, equivalent to 83.9 Mt of CO2eq, using its domestic resources. The new target is 1 percentage point higher than the previous objective set in 2015. The GHG emission cut target could be further increased from 25% to 27%, or 250.8 MtCO2eq, with international support through bilateral, multilateral cooperation and implementation of mechanisms under the Paris Agreement. In addition, the updated policy document identifies mitigation measures for the 2021-2030 period, as well as strategic tasks on adaptation.