At a workshop organized by HSF’s partner the Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE) on 21st November 2012, ISPONRE’s Director Nguyen Van Tai stressed the importance of Vietnam entering the global carbon market in the near future. The carbon market, created under the Kyoto Protocol, enables the trading of carbon emission allowances between developed countries, with higher levels of carbon emissions than allowed, and developing countries, with low emission levels. This trade is described as a cap-and-trade scheme, which allows developing countries to sell their leftover allowance to developed countries. The carbon market was introduced as an incentive to reduce carbon emissions and has provided a platform for emerging economies to begin implementing carbon pricing and clean energy policies. Vietnam has followed this trend and is scheduled to reduce greenhouse gas emissions by up to 10% by 2020 under the National Strategy on Green Growth. So far, Vietnam has been successful in registering over 160 Clean Development Mechanism (CDM) projects to reduce greenhouse gas emissions. Tai stressed that these were preparatory steps towards Vietnam participating in the global carbon market. Meanwhile, deciding on a national strategy for carbon emission reduction after 2020 as well as improving the legal framework for carbon trading activities are only two of the many challenges facing Vietnam’s policy makers in this field.