Vietnam eyes 30% carbon offset cap to ease corporate burden

Steel industry likely to rely on carbon offsets as it enters first regulated phase. (Photo: iStock)

Vietnam is set to launch a pilot carbon credit trading scheme this year, with regulations still under development regarding the percentage of emissions that businesses can offset using carbon credits.

According to draft documents, this offset cap has been repeatedly revised upward. An official from the Ministry of Agriculture and Environment (MAE) revealed that the government aims to raise the cap to 30% in hopes of easing pressure on companies during the early stages of carbon reduction efforts.

Government plans flexible carbon offset rules

To fully implement its Emissions Trading System (ETS) by 2029, Vietnam’s Ministry of Finance is currently drafting the legal framework for the carbon market.