ASEAN Climate Action Dialogue 2026: Strengthening Regional Carbon Market Readiness

The event was co-convened by the Global Compact Network Philippines (GCNP) and Race to Net Zero Philippines (RTNZ), in collaboration with the European Chamber of Commerce of the Philippines (ECCP), the International Rice Research Institute (IRRI), and the UNEP Climate and Clean Air Coalition (UNEP-CCAC).

Designed as a One-Day High-Level Learning & Action Dialogue, the event focused on mobilizing non-state actors in climate adaptation and mitigation efforts, while advancing carbon market readiness across Southeast Asia. Discussions centered on reducing fragmentation across standards, registries, and reporting systems; enhancing interoperability between voluntary carbon markets and compliance mechanisms; and clarifying pathways for implementing cooperative approaches under Article 6.2 of the Paris Agreement within the ASEAN context.

During Plenary Session 1, titled “ASEAN Carbon Markets & Article 6.2 Readiness,” Dr. Nguyen Phuong Nam, CEO of KLINOVA, participated virtually as a high-level roundtable speaker. His presentation focused on Vietnam’s legal framework and development roadmap for its domestic carbon market, with particular emphasis on newly issued provisions under Decree 29 governing the establishment and operation of the national carbon market.

According to Dr. Nam, Decree 29 operationalizes provisions of the Law on Environmental Protection regarding the establishment and operation of a carbon trading platform, the allocation of greenhouse gas emission allowances, and mechanisms for carbon credit exchange and offsetting. This marks a significant transition from institutional preparation to the pilot implementation phase of Vietnam’s carbon market. Dr. Nam emphasized that clearly defining the roles of regulatory authorities, designing transparent allowance allocation mechanisms, and outlining a phased pilot trading roadmap will provide the legal foundation for Vietnam to progressively connect with international mechanisms, including cooperative approaches under Article 6 of the Paris Agreement.

In the context of ASEAN’s efforts to enhance regional market integration and cooperation, Dr. Nam’s intervention provided a concrete example of how a developing country is building a domestic carbon market framework while preparing to participate in international transfer mechanisms. His contribution helped illustrate the diverse levels of market readiness across the region and encouraged knowledge exchange among the Philippines, Thailand, and Vietnam on governance structures, registry design, and environmental integrity safeguards.

The Dialogue concluded with a shared commitment to strengthening collaboration among public institutions, private sector actors, and international organizations to build transparent, interoperable carbon market infrastructure capable of mobilizing climate finance flows in 2026–2027. The participation of Dr. Nguyen Phuong Nam, alongside international speakers, highlighted Vietnam’s growing role in the development of ASEAN carbon markets and its integration into the evolving global climate architecture.

- Huu Hoang -