CNUDMI - A-CN.9-1216-Add.2

United Nations A/CN.9/1216/Add.2

General Assembly

Distr.: General 9 July 2025

English only

V .25-11255 (E) 100725 1 10725 2511255

United Nations Commission on International Trade Law Fifty-eighth session Vienna, 7–23 July 2025

Additional comments on the UNCITRAL/UNIDROIT study on the legal nature of verified carbon credits issued by independent carbon standard setters

Contents Page

I. Introduction ............................................................... 2

II. Comments submitted by the Government of Viet Nam ............................. 2A/CN.9/1216/Add.2

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I. Introduction

1. Document A/CN.9/1216 reproduce d comment s received by the secretariat as of 16 January 2025 on the revised version of the UNCITRAL/UNIDROIT study on the legal nature of verified carbon credits issued by independent carbon standard setters

(A/CN.9/1191/Rev.1 ). This document supplements that document and reproduces the comments received from the Government of Viet Nam as received by the secretariat .

II. Comments submitted by the Government of Viet Nam

[Original: English] [7 July 2025]

1. Viet Nam is among the countries most severely affected by the adverse impacts of climate change. To address this issue, Viet Nam has issued numerous policies related to climate change response, including greenhouse gas (GHG) emission reduction. The Nationa l Climate Change Strategy to 2050 emphasizes mobilizing resources for climate action and developing financial mechanisms and carbon markets. Viet Nam recognizes that establishing a carbon credit market will generate positive socio -economic, financial, and technological transfer impacts, contributing to emission reduction and environmental protection goals.

reduction. The Nationa l Climate Change Strategy to 2050 emphasizes mobilizing resources for climate action and developing financial mechanisms and carbon markets. Viet Nam recognizes that establishing a carbon credit market will generate positive socio -economic, financial, and technological transfer impacts, contributing to emission reduction and environmental protection goals.

2. The Law on Environmental Protection 2020 affirms that one of the GHG mitigation measures is the organization and development of the domestic carbon market (Article 91). It also provides that the domestic carbon market includes activities such as exchanging GHG emission quotas and carbon credits obtained from domestic and international crediting and offset mechanisms in accordance with national law and international treaties to which Viet Nam is a party (Article 139). The Scheme on Carbon Market Development approved in 2025 outlines a centralized market model operating under strict State management and supervision, ensuring transparency, safety, effectiveness, alignment with national conditions and international practices, and balancing national and market pa rticipants’ interests.

3. The legal framework for carbon credit markets in Viet Nam is provided for in two governmental decrees . First, newly promulgated Decree No. 119/2025/ND -CP dated 09 June 2025 amends and supplements Decree No. 06/2022/ND -CP on GHG mitigation and ozone layer protection. This decree outlines provisions on the compliance carbon market (CCM), including eligible participants, transaction support, development roadmap, launch schedule, verification of tradable carbon credits, and procedures such as transfer, borrowin g, offsetting, and responsibilities of State agencies and the national registry system for emission quotas and carbon credits.

Second, the draft Decree on Domestic Carbon Exchanges, which is expected to be promulgated in the coming months, provides for the trading, clearing, and settlement of emission quotas and carbon credits on the exchange platform. The exchange is designed to accommodate both voluntary and compliance markets, depending on the commodity and participants involved under environmental law. It is expected that stock market infrastructure will provide services for carbon transactions. Recognized tradable commodities include: (i) carbon credits from domestic offsetting

designed to accommodate both voluntary and compliance markets, depending on the commodity and participants involved under environmental law. It is expected that stock market infrastructure will provide services for carbon transactions. Recognized tradable commodities include: (i) carbon credits from domestic offsetting programs/projects; (ii) carbon credits from international offsetting program s/projects; (iii) credits from the Clean Development Mechanism (CDM); (iv) credits from the Joint Crediting Mechanism (JCM); (v) credits from mechanisms under Article 6 of the Paris Agreement. All credits must be verified by a competent authority and registered in the National Registry System before being listed on the Hanoi Stock Exchange. The expected trading method is negotiated transaction. It is evident that Viet Nam is in the process of finalizing its legal framework to launch a domestic carbon credit market, initially focusing on the spot market and later exploring derivative products.

4. Viet Nam notes that while voluntary carbon markets (VCMs) have the potential to contribute to climate and economic and social objectives, they face severalA/CN.9/1216/Add.2

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challenges, including greenwashing, reduced incentives for technological innovation and emission reduction, inaccurate carbon accounting leading to double counting, diminished public and investor trust, market transparency issues, inconsistent project quality, and low credit integrity. There are also equity concerns around benefit -sharing and community participation. Currently, international legal frameworks governing VCMs are still rudimentary. Therefore, a clear, transparent, and detailed legal framework is essential for guiding businesses and investors while mitigating risks and unlocking the market’s potential.

5. Viet Nam highly appreciates the efforts of the UNCITRAL and UNIDROIT Secretariats in preparing the joint study on voluntary carbon credits, which provides valuable reference for countries in formulating relevant legal provisions.

6. Viet Nam recommends that the joint study further clarify: • The responsibilities of V oluntary Carbon Credit (VCC) issuing entities to ensure sustainability and quality of credits; • State oversight and regulatory measures addressing issues like money

valuable reference for countries in formulating relevant legal provisions.

6. Viet Nam recommends that the joint study further clarify: • The responsibilities of V oluntary Carbon Credit (VCC) issuing entities to ensure sustainability and quality of credits; • State oversight and regulatory measures addressing issues like money laundering and terrorism financing; • Supervisory authorities; • Transaction management measures to prevent market manipulation and price distortion; • Disclosure and transparency requirements; • VCC quality control (e.g., developers shifting sectors); and • Dispute resolution mechanisms, including investor -State disputes.

7. Finally, Viet Nam reaffirms its support for UNCITRAL’s initiative to consider and discuss emerging issues in international trade, thereby assisting countries in referencing international best practices and building a favourable , transparent, and secure legal environment for global commerce.