Climate Strategy Milestones

Vietnam has officially launched the pilot phase of its national CO₂ Emissions Trading Scheme (ETS), marking a major milestone in its climate strategy. The ETS, which covers nearly half of the country’s carbon emissions, targets heavy-polluting sectors such as steel, cement, and energy. Starting this year, Vietnam will allocate emissions allowances for 2025 -- 2026, requiring companies exceeding their limits to buy carbon credits. The scheme incentivizes cleaner operations and establishes a carbon pricing mechanism that aligns with the country’s net-zero by 2050 goal. As Southeast Asia's industries expand, this move signals Vietnam’s readiness to balance economic growth with environmental responsibility. The ETS is part of a broader regulatory framework aimed at integrating green practices into the core of Vietnam’s development model, paving the way for renewable investment and innovation.

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