Vietnam government allocates pilot emission quotas to 51 cement plants for 2025-26

Vietnam has officially included 51 cement production facilities in its pilot greenhouse gas emission quota allocation for the two-year 2025-2026 period, according to a government statement released Feb. 9.

Vietnam's Deputy Prime Minister Tran Hong Ha signed Decision No. 263/QD-TTg on Feb. 9, approving the pilot total greenhouse gas emission quotas for the two-year period. Under the decision, quotas will be distributed not only to cement producers but also to 34 thermal power plants and 25 iron and steel facilities, together representing major carbon-intensive sectors in Vietnam's economy, the statement read.

The pilot scheme sets the total emission quota for 2025 at 243.08 million metric tons of CO2 equivalent and for 2026 at 268.39 million mtCO2e, with allocations tailored to each included facility. The Ministry of Agriculture and Environment has been tasked with coordinating the quota distribution process alongside the ministries of Industry and Trade and Construction.

The statement did not disclose which specific cement plants are included in the pilot program, nor did it provide a breakdown of quota allocations by company.

Market participants in the Asia region noted that the inclusion of cement producers in the quota pilot reflects growing regulatory focus on carbon management ahead of broader carbon pricing mechanisms planned for implementation from 2028.

"These quotas will drive greater investment in energy efficiency and alternative fuels," said a Vietnam-based producer.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $38/mt on Feb. 5, up from $37.5/mt the previous week. Platts also assessed cement clinker FOB Vietnam at $33.5/mt on Feb. 5, up from $33.25/mt FOB the previous week.