Vietnam officially launched its national carbon market on Monday, opening the Vietnam Carbon Exchange (VCX) at the Hanoi Stock Exchange. The initial phase includes 92 companies from high-emitting sectors like thermal power, cement, and steel. Over 511 million tonnes of CO2e in emission allowances were made available for the 2025-2026 compliance period, with trading open until December 2027. The exchange uses a cap-and-trade model where companies that emit less than their allowances can sell surplus credits to those that exceed their caps. Six securities firms have been appointed to handle clearing and settlement. The launch is part of Vietnam's broader strategy to reduce greenhouse gas emissions and attract international investors, especially as the country expects an upgrade to FTSE Russell's Secondary Emerging Market status.
