VNEEC successfully organized the Final Workshop on Technical Assistance (TA) “Emission Trading System (ETS) training and simulation in Vietnam” on March 6, 2025.

On the morning of March 6, 2025, in Hanoi, the Final Workshop on Technical Assistance (TA) “Emission Trading System (ETS) training and simulation in Vietnam” was successfully held. The event was organized by the Southeast Asia Energy Transition Partnership (ETP), United Nations Office for Project Services (UNOPS), in collaboration with the Department of Climate Change (DCC), the Ministry of Agriculture and Environment (Ministry of Natural Resources and Environment). The workshop aimed to review and present key achievements, share lessons learned from the implementation of the TA, and outline the next steps in the development of Vietnam’s ETS.

(Photo: Mr. Nguyen Tuan Quang, Deputy Director of the Department of Climate Change)

Speaking at the workshop, Mr. Nguyen Tuan Quang, Deputy Director of the DCC, emphasized the importance of developing and finalizing the legal framework for ETS, clearly defining major greenhouse gas (GHG) emitting facilities that will be allocated allowances and participate in the carbon market. He also mentioned that the Government had issued Decision No. 232/QĐ-TTg on January 24, 2025, approving the establishment and development of the carbon market in Vietnam, setting a roadmap for the pilot operation of the domestic carbon trading platform starting in June 2025.

Mr. Quang stated: “The guidance on using the ETS simulation tool is one of the support activities within the framework of the MOU between the DCC and UNOPS. This facilitates stakeholders in gaining a better understanding of the functions, operational processes, management, and trading of GHG emission allowances and carbon credits on the exchange”. “Thus, the results of the TA activities by ETP and UNOPS in recent times have been extremely important and valuable.”- Mr. Quang affirmed.

(Photo: Mr. John Robert Cotton, Deputy Director of the Southeast Asia Energy Transition Partnership (ETP))

Mr. John Robert Cotton, Deputy Director of the ETP stated that ETP is focusing on Indonesia, the Philippines, and Vietnam, which are countries in the region with high energy demand, a large number of fossil fuel-based energy projects, and significant potential for cost-effective renewable energy and energy efficiency. He emphasized that ETS is a crucial tool to help Vietnam achieve its emission reduction targets under its Nationally Determined Contributions (NDC) and its net-zero emissions commitment by 2050. The success of the ETS training program not only benefits Vietnam but also provides valuable lessons for other ASEAN countries.

From February to December 2024, the TA conducted six training including policymakers, representatives from emitting enterprises, research institutes, financial organizations, and media agencies. The most important group, industrial emitting enterprises, accounted for 59% of the total participants, as they will play a key role and be directly affected when ETS is implemented.

(Photo: Ms. Dang Hong Hanh, Team Leader, Climate Change Policy Expert, Co-Founder, Managing Director of Energy and Environment Consulting Joint Stock Company (VNEEC))

Ms. Dang Hong Hanh, Managing Director of VNEEC, highlighted that the training model emphasized interaction and hands-on practice to help participants grasp the operational mechanisms of ETS. The courses combined expert-led discussions, international case studies, and practical simulation exercises using the CarbonSim tool. Leading international and domestic experts on ETS and carbon markets provided instruction. The program also invited guest speakers from Canada, the United Kingdom, the International Emissions Trading Association (IETA), and the Organization for Economic Co-operation and Development (OECD) to provide updates on global ETS developments and share insights for Vietnam.

The feedback from pre- and post-training surveys clearly demonstrates that the course greatly enhanced participants’ knowledge and skills in ETS and market-based mechanisms, affirming its overall effectiveness. Before training, 14.45% of participants were uncertain about ETS’s role in achieving Vietnam’s NDCs, and 14.38% doubted its cost-effectiveness. After the training, those viewing ETS as “indispensable” rose from 27.14% to 46.94%, while skepticism about cost-effectiveness dropped to 1.63%, with 73.62% now considering it very cost-effective.

Additionally, technical knowledge of design principles, cost-effectiveness, carbon pricing, trading mechanisms, policy implications, and strategic decision-making were markedly enhanced. Confidence in explaining carbon pricing increased from 6.12% to 37.44%, and understanding of market mechanisms improved from 10.43% to 59.18%. Over 80% of respondents rated the training as “Very useful,” with interactive sessions and hands-on CarbonSim simulations transforming initial uncertainty into strong confidence. Participants gained the ability to explain complex concepts clearly and effectively engage in strategic decision-making, which is essential for advancing Vietnam’s ETS implementation.

Beyond knowledge enhancement, the initiative generated significant media coverage, amplifying public awareness of carbon markets and Vietnam’s climate policies. Multiple local and international news outlets featured the training events, reinforcing their relevance and impact. The involvement of international partners further strengthened Vietnam’s ETS development by fostering knowledge exchange and strategic cooperation.

(Photo: Overview of the Final Workshop)

The Final Workshop reaffirmed the success of the TA in raising awareness about ETS and the carbon market in Vietnam while providing key recommendations and technical advice for policy development. These recommendations emphasized the necessity of clear policies, robust methodologies for setting emission caps, and appropriate allocation of allowances. Capacity-building activities for stakeholders and regular assessment and adjustment of ETS implementation were also identified as essential. Additionally, monitoring international mechanisms such as the Carbon Border Adjustment Mechanism (CBAM) is crucial to ensuring the system’s efficiency and competitiveness. The achieved results serve as a solid foundation for promoting ETS implementation in Vietnam, aiming for effective GHG emission reduction and low-carbon development.