The event gathered representatives from regulatory agencies, domestic and international experts, and pioneering businesses in the field of carbon credits to exchange information, share implementation experiences, and discuss policy directions, as Vietnam gradually builds its domestic carbon market framework.
The Joint Crediting Mechanism (JCM) is a bilateral cooperation initiative between the Government of Japan and partner countries, including Vietnam, aimed at promoting the transfer of low-carbon technologies, supporting greenhouse gas emission reduction projects, and contributing to sustainable development. Through the JCM, both countries jointly verify the volume of emissions reduced to issue carbon credits, which can be used domestically or traded on international markets in alignment with the Paris Agreement.
In the opening remarks, Mr. Tang The Cuong, Director General of the Department of Climate Change (Ministry of Agriculture and Environment of Vietnam), and H.E. Ito Naoki, Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam, emphasized the importance of bilateral cooperation in addressing climate change, particularly through the JCM as a practical mechanism to support the implementation of emission reduction commitments under the Paris Agreement.
The forum provided updates on key policy developments in Vietnam, notably Decree No. 119/2025/ND-CP regulating greenhouse gas inventory, emission quota allocation, and the development of the carbon market. The decree introduces flexible mechanisms such as quota borrowing, transfer of unused quotas, and offsetting emissions using carbon credits. Additionally, the project approval process under Article 6.4 of the Paris Agreement has been streamlined to a maximum of 40 working days to enhance efficiency and promote implementation.
Another important topic was the draft decree on establishing a national carbon exchange, which is expected to operate digitally, with trading managed by the Hanoi Stock Exchange (HNX) and settlement services provided by the Vietnam Securities Depository and Clearing Corporation (VSDC). The pilot phase will last until the end of 2028, with full operation planned from 2029.
During the forum, experts from Japan and Vietnam shared progress on updating JCM rules and guidelines to align with Article 6 of the Paris Agreement. Accordingly, JCM credits will be recognized as Internationally Transferred Mitigation Outcomes (ITMOs), with implementation steps including the submission of initial reports, mutual approval by partner countries, and issuance of actual ITMOs upon verification.
The forum also served as a platform for businesses to share practical experiences and lessons learned in implementing JCM projects across sectors such as agriculture, biomass energy, transportation, energy transition, and carbon capture. Representatives from Vingroup, Vietnam National Industry-Energy Group, Green Carbon, JOGMEC, erex, Shizen Energy, JFE Engineering, Idemitsu, and Kenzen presented innovative carbon credit initiatives, including alternate wetting and drying (AWD) irrigation, biomass and waste-to-energy generation, offshore wind development, green hydrogen production, and carbon capture, utilization and storage (CCS/CCUS). These case studies highlighted JCM’s role not only as a tool for emissions reduction but also as a catalyst for green technology adoption and investment in Vietnam.
Alongside notable achievements, businesses candidly addressed ongoing challenges, such as the lack of up-to-date national data for establishing baselines, limited access to local datasets, complex credit issuance procedures, and the absence of clear regulations on carbon credit ownership. Key recommendations included expanding eligible JCM sectors to include CCS/CCUS, providing financial support for pilot projects, and applying advanced technologies such as remote sensing for emissions monitoring and verification.
The day concluded with a final panel discussion on unlocking finance, investment, and commercialization of carbon credits. Regulators and enterprises agreed that streamlining procedures, finalizing institutional frameworks, and strengthening technical support are essential to fully realizing the potential of Vietnam’s carbon market.
The forum concluded with a shared commitment to enhance cooperation between stakeholders to promote the Joint Crediting Mechanism, integrate with international carbon markets, and contribute to Vietnam’s goal of achieving net-zero emissions by 2050.
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