The Business Partnerships Platform (BPP) has released its Carbon Market Lessons and Insights Report, showcasing six pilot projects aimed at accelerating Vietnam’s carbon market. Developed in collaboration with Allotrope Partners, the report shares practical experiences from projects in forestry, agriculture, carbon removal, and coastal ecosystems, highlighting both emissions reduction and social and environmental benefits.

For almost ten years, BPP has partnered with the Australian Government and inclusive businesses to create positive development outcomes while supporting sustainable commercial growth. These partnerships often help businesses improve their operations, develop new products and services that benefit communities, or make supply chains more productive and environmentally friendly.

“Through the BPP Carbon Markets Partnerships round, we’ve worked with international and Vietnamese organisations, universities, local authorities, and communities to test new ideas, create innovative approaches, and build strong partnerships,” says Simon Wilson, BPP Team Leader.

Pilot Projects in Action

Since late 2022, six BPP Carbon Market Partnerships have been testing scalable models across different landscapes—from restoring mangroves to promoting regenerative farming. These projects aim to cut greenhouse gas emissions while improving local livelihoods. They have also helped build local expertise and delivered real benefits to communities, laying the foundation for a domestic carbon market that can attract investment.

Vietnam is moving quickly on carbon market policy. Key steps include updates to the Environmental Protection Law, new regulations (Decrees 06/2022 and 119/2025), and a pilot domestic carbon market scheduled to run from mid-2025 through 2028. Full market operations are expected by 2029.

Early projects are already showing measurable emissions reductions. While the report doesn’t list exact figures, it points to strong potential through verified forest restoration and sustainable land use, supported by robust systems for Measurement, Reporting & Verification (MRV).

Challenges and Opportunities

Despite progress, challenges remain. The report notes issues such as unclear land ownership, questions about who owns carbon credits, complex MRV requirements, rules for exporting credits, and fair benefit-sharing. Projects that aligned land boundaries with official records saw better engagement from regulators and stronger community trust. Similarly, culturally sensitive safeguards helped manage social and reputational risks.

“All of this supports practical progress toward reducing emissions and building Vietnam’s carbon market,” Wilson adds. The report combines on-the-ground experiences, partner interviews, and technical analysis to provide a clear picture of Vietnam’s carbon market journey.

What’s Next for Vietnam

The report calls for continued collaboration among government, businesses, researchers, and civil society to ensure transparency, strong safeguards, and local participation in carbon market design. Building skills, creating easy-to-use tools, and aligning systems will be critical for scaling projects and attracting investment.

“I encourage anyone—whether in government, development, business, or community organizations—who is interested in Vietnam’s carbon market to read this report,” says Wilson.

Vietnam’s plan to pilot carbon trading from 2025 and move to full operations by 2029 puts the country at the forefront of climate action in Southeast Asia. The BPP report offers practical insights into what works and where more support is needed to create a credible, inclusive, and high-integrity carbon market.

As Vietnam moves toward its net-zero goals, the Carbon Market Lessons and Insights Report serves as a guide for governments, investors, developers, and community leaders looking to use carbon finance for sustainable development.