Lessons and insights from the BPP Carbon Market partnerships in Vietnam

Since November 2022, six BPP Carbon Market partnerships have tested scalable models in forestry, agriculture and removals to cut emissions and grow livelihoods, while building the systems, safeguards and monitoring needed for integrity. The work has strengthened local capacity, delivered real community benefits and produced practical lessons for an inclusive, resilient and investment-ready carbon market as Vietnam enters its pilot phase.

Over the past month we’ve profiled the impact of several of these partnerships that wrapped earlier this year. Today, we’re releasing the BPP’s Vietnam Carbon Markets: Lessons and Insights Report, to share what worked, what didn’t and what’s next for a high-integrity carbon market in Vietnam.

Here are the highlights:

An evolving policy framework

Vietnam is entering a critical phase in developing its carbon market, with major policy milestones such as the Revised Law on Environmental Protection, Decree 06/2022/ND-CP, and Decree 119/2025/ND-CP (issued June 2025). The government is committed to building a national carbon market, with a pilot domestic carbon market from mid-2025 through the end of 2028, and official operation from 2029 onward. There has been a continuing shift from policy vision-setting to the practical integration of land-use and forestry activities into the national carbon trading system. However, there are still unresolved issues regarding carbon credit ownership, export eligibility, land use, MRV (Measurement, Reporting, Verification) guidance, and benefit sharing and safeguards

Key lessons from BPP partnerships

• Navigating land use and tenure challenges requires early, sustained engagement with local authorities and a pragmatic approach to aligning project boundaries with official land records. Projects benefit from building strong local partnerships to manage regulatory uncertainty and enhance social legitimacy.
• Safeguard risks – both physical and social – must be systematically integrated into project planning. Culturally appropriate communication and safeguards protect vulnerable communities and mitigate reputational and operational risks.
• The absence of a fully developed domestic carbon market compels projects to adopt multi-track strategies, aligning with international voluntary standards while preparing for future domestic regulation and potential participation in Article 6 transactions. Targeted capacity building and accessible tools are essential to overcome technical and methodological barriers.
• Legal and policy complexities around credit ownership and export introduce challenges to accessing vital financing pathways for international carbon markets. Proactive legal due diligence, scenario planning, and regulatory engagement are indispensable for export readiness.
• Projects designed to accentuate co-benefits with inclusive, context-specific safeguards and benefit-sharing mechanisms that address social equity and promote long-term community support will be more likely to succeed.

Outlook

Vietnam’s carbon market is moving from concept to reality, with a clear roadmap from pilot phase to official operation in 2029. The BPP partnerships show Vietnam’s strong potential to develop high-quality carbon projects that deliver both climate impact and local benefits. Continued dialogue and coordination among policy makers, businesses, communities, and international partners will help Vietnam’s carbon market develop transparently, equitably, and effectively.

Read the report below:

• In English: BPP Vietnam Carbon Markets: Lessons and Insights Report
• In Vietnamese: BPP Vietnam Carbon Markets: Lessons and Insights Report

With thanks to Allotrope Partners for their support developing the report.