This file photo taken on Dec 1, 2021 shows the train running on the Cat Linh-Ha Dong metro line in Hanoi, capital of Vietnam. (PHOTO / XINHUA)

HANOI — Vietnam is slated to establish its first market for trading carbon dioxide emissions in 2028 in a move to enhance the exchange of carbon credit between local and international markets, Vietnam News reported on Tuesday.

Under the plan proposed by the Ministry of Natural Resources and Environment, Vietnam is preparing to develop regulations on carbon credit management and exchange of greenhouse gas emission quotas and carbon credits. The process is due to complete in 2027.

A carbon credit is a permit that represents one ton of carbon dioxide removed from the atmosphere, usually bought to make up for carbon dioxide emissions

The operation of the carbon trade exchange is expected to create a framework for Vietnam to monetize reduced emissions while working toward carbon neutrality by 2050.

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To participate in the carbon market, businesses should develop mitigation measures and meet requirements of reducing greenhouse gas emissions by 2026, said Nguyen Tuan Quang, deputy director of the Department of Climate Change, Ministry of Natural Resources and Environment.

A carbon credit is a permit that represents one ton of carbon dioxide removed from the atmosphere, usually bought to make up for carbon dioxide emissions.

With 14.7 million hectares of forest, Vietnam can sell 57 million carbon credits to international organizations annually with each of credit priced as much as $5.

The authorities hope that the market will encourage more companies to participate in emissions trading and foster de-carbonization in the country.

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The Quang Nam province has asked for the government's permission to be the first in the country to join the voluntary carbon market. It expects to sell some 6 million carbon credits for about $30 million by 2025.