The Legal Nature of Emission Rights – International Experience and Vietnamese Law

Abstract

The carbon emission rights market effectively controls emissions activities and develops the economy. The market's stability will depend on determining the legal nature of the objects allowed to circulate in that market. However, carbon trading markets worldwide have yet to reach a consensus in determining the legal nature of carbon emission rights. The article shows that national laws have different approaches to the legal nature of carbon emission rights in one of the following cases: (i) Just an administrative tool; (ii) Is an object of ownership, which is divided into goods or financial instruments; (iii) Is subject to ownership rights but is limited; (iv) Determined flexibly. The article reviews international experience in determining the legal nature of emission rights. Based on that, the article explores the factors determining the legal nature of carbon emission rights. Specifically, the paper determines that the right to emit carbon qualifies as an asset and should be classified as an intangible asset.