How to Finance Emission Cuts at a Cement Plant in Vietnam

Published 2026-10-13.

Vietnam makes more cement than it can use, and in 2025 it sold more abroad than ever. Exports of cement and clinker rose 25.6 percent to 37.32 million tonnes, according to Vietnam Customs data reported by S&P Global, mostly to Bangladesh, the Philippines, Malaysia and Taiwan. A cut in the clinker export tax from 10 to 5 percent, in force from late May 2025 to the end of 2026, helped.

For most Vietnamese cement plants, the carbon pressure that matters now is not the EU border. It is at home.

Vietnam's carbon quotas

On 9 February 2026, the government approved Decision 263/QĐ-TTg, the first emission quotas for Vietnam's pilot carbon market. It covers 110 facilities: 34 thermal power plants, 51 cement plants and 25 iron and steel producers. Total quotas are 243.08 million tonnes of CO2e for 2025 and 268.39 million tonnes for 2026, allocated per facility using benchmarks and historical emissions.

A plant that emits more than its quota must buy allowances from plants with a surplus, or use eligible carbon credits for up to 30 percent of its quota. The pilot runs to 2028, with a full market planned from 2029. A Vietnam Cement Association official said some producers received quotas close to their recent output while others got well below their actual emissions.

That turns emissions per tonne of clinker into a cost line for 51 plants, and into a possible income for those that do better than their benchmark.

Where the reductions are

Cement emissions come from turning limestone into clinker and from the fuel that heats the kiln. The levers:

Less clinker per tonne of cement, using fly ash, slag or other supplementary materials where standards allow.
Kiln efficiency and alternative fuels in place of coal.
Waste-heat recovery to make electricity from kiln exhaust.
Better metering, so the plant's reported emissions match what it actually burns.

Where green finance fits

Vietnam's national green taxonomy, Decision 21/2025/QĐ-TTg, in force since 22 August 2025, gives banks a legal test for green lending: environmental compliance plus a listed environmental benefit, certified by state or accredited bodies. Ask the bank which category a waste-heat, fuel-switch or clinker-reduction project falls under before you apply.

A plant that can show monthly fuel, clinker and power data, its quota and its expected position under the pilot has a clear story for a lender: the project lowers emissions and the cost of buying allowances.

For buyers in the EU, cement is covered by CBAM, with default values carrying a mark-up when actual data is missing; see CBAM cost per tonne of cement. For the steel side of Vietnam's market, read how Vietnamese steel exporters can finance CBAM readiness.

Confirm current eligibility and terms with the lender before you apply.