The Government issued Decree No. 112/2026/ND-CP dated April 1, 2026, regarding the international exchange of greenhouse gas (GHG) emission reduction results and carbon credits. This Decree regulates the exchange of GHG emission reduction results and carbon credits with international partners to implement the Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCCC), supporting the achievement of national GHG emission reduction targets and other mitigation goals.
Decree No. 112/2026/ND-CP dated April 1, 2026, takes effect from May 19, 2026, applying to state agencies, organizations, and enterprises participating in emission reduction projects or international carbon credit transactions.
Principles of International Exchange of GHG Emission Reduction Results and Carbon Credits
The Decree stipulates that the international exchange of GHG (Greenhouse Gases) emission reduction results and carbon credits must adhere to the following principles:
a) Comply with the provisions of the Paris Agreement; support the development and transfer of GHG emission reduction technologies, enhance the competitiveness of enterprises, and promote low-carbon economic development in Vietnam;
b) Prioritize the fulfillment of GHG emission reduction targets in Vietnam’s NDC and GHG mitigation goals under international treaties and commitments;
c) Ensure national interests and harmonize the interests of participating parties, contributing to the sustainable development of local communities where programs and projects are implemented.
International exchange activities related to GHG emission reduction results and carbon credits between Vietnam and international partners must be recorded and announced on Vietnam’s National Registry System.
The Decree designates the Ministry of Agriculture and Environment as the authority to issue approval documents for the international transfer of GHG emission reduction results and carbon credits after the results and credits have been issued.
GHG emission reduction results or carbon credits that have been revoked or expired are ineligible for international transfer.
The Corresponding Adjustment for the volume of internationally transferred mitigation outcomes (ITMOs) between Vietnam and international partners will be implemented in accordance with the provisions of the Paris Agreement.
International Transfer Ratios
Regarding the specific ratios for international transfer, the Decree stipulates:
- For international transfers with Corresponding Adjustments:
- Maximum 90% for programs and projects in encouraged sectors under List No. 01.
- Maximum 50% for programs and projects in encouraged sectors under List No. 02.
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For international transfers without Corresponding Adjustments: A maximum transfer ratio of 90% applies generally to all types of projects. This ratio applies to the amount of credits/GHG reduction results issued in specific phases of the project.
Sale of Emission Reduction Results and Carbon Credits
The entity with the authority to decide on the sale is determined based on the investment type of the program or project:
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Public Investment Projects: The governing body of the program/project is the entity authorized to decide on the sale.
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Public-Private Partnership (PPP) Projects: The right to decide and conduct exchanges is exercised through agreement between the contracting authority and the investor.
Regulations on owners and ownership rights of reduction results and carbon credits are as follows:
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For Public Investment Projects: GHG emission reduction results and carbon credits generated from public investment capital are under State management (through the governing body).
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For PPP Projects: Ownership rights and related benefits are specifically defined in the PPP project contract or the project’s financial plan.
Revenue Management:
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Public Investment Projects: Proceeds are identified as state budget revenue. Management and use must strictly comply with the law on the state budget. Before conducting a sale, the governing body must obtain written opinions from: the Sector-managing Ministry, the Ministry of Agriculture and Environment, the Ministry of Public Security, and other relevant agencies.
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PPP Projects: Revenue from exchanges is recorded as revenue of the PPP project. This revenue is managed according to the law on public-private partnership investment. If a project has already signed a contract or has a financial plan but a need for credit exchange arises, the parties must adjust the project contract and/or financial plan to update this content.
View full decree at: Link
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