On November 25-26, VNU University of Economics and Business (VNU-UEB), in collaboration with Flinders University, the Carbon For Good project, the Center for International Forestry Research (CIFOR), and University of British Columbia, held a policy dialogue on navigating carbon markets.
The event gathered policymakers, international experts, development organisations, and businesses at a moment when the global carbon market is entering a new phase of standard-setting following COP30.
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Le Trung Thanh, president of VNU-UEB, emphasised that the world is undergoing profound shifts in climate action. New rules and commitments related to Article 6 of the Paris Agreement are paving the way for a transformative period in carbon markets, where governments, businesses, and the scientific community work together toward the global target of net-zero emissions.
“The interdisciplinary and cross-country dialogues at the event may help connect researchers with policymakers and link private-sector actors with development organisations,” Thanh said.
Against this backdrop, Vietnam is accelerating preparations to operate its domestic carbon market from 2028, while deepening integration with international carbon credit trading mechanisms. Global studies by the IPCC, the World Bank, and CIFOR-ICRAF highlight the central role of carbon markets in reducing emissions, promoting green growth, and mobilising climate finance for developing countries.
Nguyen Thanh Cong, deputy head of the Carbon Market Division under the Department of Climate Change at the Ministry of Agriculture and Environment, provided updates on Vietnam’s carbon market development roadmap. The ongoing pilot phase focuses on high-emission sectors such as steel, cement, and thermal power, with approximately 150 enterprises participating.
“During this phase, carbon credits may be used to offset emission quotas, which are allocated entirely free of charge. Emitters may borrow up to 15 per cent of the next period’s quota, or carry over unused quotas to the subsequent phase. Credits can be used to offset up to 30 per cent of the allocated quota, and all transactions will be conducted on a centralised carbon trading platform,” Cong said.
Beria Leimona, senior scientist and lead for Climate Change, Energy, and Low-Carbon Development at CIFOR, stressed the need for new approaches to mobilising finance for sustainable development.
To meet climate and biodiversity targets, the world will require $6.3-6.7 trillion annually by 2030, sourced from governments, the private sector, and international or multilateral financing.
“Carbon markets are becoming an increasingly important tool for mobilising private capital,” Leimona noted. "Between the first three quarters of 2024 alone, an estimated $14 billion was mobilised for new carbon credit projects worldwide, with nature-based carbon removal projects accounting for the largest share. Buyers are increasingly willing to pay premium prices for high-quality credits, and prices for high-integrity green credits have risen sharply.”
However, Leimona cautioned that the global carbon market is becoming more complex, with growing overlaps between voluntary and compliance markets and between national and international mechanisms. The launch of the Open Alliance for Compliance Carbon Markets at COP30 marks a significant step towards better coordination and cross-border links, but also introduces stricter demands on integrity, interoperability, and transparency.
COP30 decisions are also advancing rules for Article 6 implementation, particularly regarding credit issuance, transfer, tracking, and measurement, reporting, and verification (MRV).
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“Forest, land-based, and jurisdictional-scale credits are being brought closer to compliance-grade standards, with heightened expectations for baselines, leakage prevention, sustainability safeguards, and reporting requirements,” Leimona added.
Meanwhile, integrity remains a central challenge. Land-based credits such as REDD+, peatlands, and mangroves face stricter scrutiny, while national registries must be transparent, with fair benefit-sharing mechanisms. Outstanding issues include incomplete guidance under Article 6.4, unresolved questions on UN-supported market funding, and concerns from developing countries about unequal market access. Additionally, carbon-related trade measures such as the Carbon Border Adjustment Mechanism continue to generate tensions.
Additionally, Leimona highlighted the need to strengthen MRV from national to local levels, ensure equitable benefit-sharing, and align local-level actions with the evolving architecture of compliance markets.
