The launch marks a major milestone in the development of Vietnam's carbon market, contributing to implementing the country's commitments to greenhouse gas emissions reduction, and accelerating the green transition and promoting low-carbon economic growth.

According to the commission, the legal framework, trading regulations, tradable assets, information technology infrastructure and settlement mechanisms have been put in place, ensuring the market is ready to begin operations on schedule.

To support the exchange, the Ministry of Finance has issued regulations governing market oversight and reporting requirements for the carbon exchange, while the SSC has instructed the Vietnam Exchange (VNX), the Hanoi Stock Exchange (HNX) and the Vietnam Securities Depository and Clearing Corporation (VSDC) to finalise operational regulations for trading, clearing and settlement.

To date, all operational components serving the operation of the domestic carbon exchange have been completed, ensuring the platform is ready to begin operation as scheduled, the SSC said.

The Ministry of Agriculture and Environment has allocated pilot greenhouse gas emission quotas to 110 facilities. The ministry has also introduced regulations governing the national registry system for greenhouse gas emission quotas and carbon credits to provide the basis for managing and trading carbon assets.

In addition, the Department of Climate Change has signed a cooperation agreement with VNX, HNX and VSDC on data exchange, information reconciliation and incident management during market operations.

The SSC said the market's technology infrastructure is fully prepared. Trading platform at HNX, the clearing and settlement system at VSDC, and the national registry have been completed, interconnected and and tested through internal and market-wide trials conducted in May and June. Authorities said the systems operated smoothly and met operational requirements.

The SSC has also selected a settlement bank for the carbon exchange while the Ministry of Finance has organised training programmes and workshops to familiarise prospective market participants with the legal framework and trading procedures.

The Ministry of Finance, in coordination with the Ministry of Agriculture and Environment and other relevant agencies, will officially launch the domestic carbon exchange on June 29.

The launch of the domestic carbon exchange is expected to accelerate the development of Vietnam's carbon market, contributing to realising the country's international climate commitments, promoting the transition to a low-carbon economy and providing businesses with a market-based tool to achieve sustainable development goals./.