Vietnam has stepped into the lucrative carbon credit market with the potential to generate an impressive $200 million each year, according to estimates by the Department of Forestry. This revenue is expected to come from the sale of approximately 40 million carbon credits (carbon units) annually. Highlighting Vietnam's commitment to environmental sustainability, the country recently entered into an agreement with Emergent, a non-profit entity focused on bridging the gap between tropical forest nations and the corporate sector to finance efforts aimed at reducing deforestation.
Nature photography of Ba Be National Park, Vietnam. AI generated picture.
Under this agreement, Vietnam will sell 5.15 million tonnes of carbon dioxide emissions to Emergent at a minimum price of $10 per tonne from 2022 to 2026, showcasing the country's proactive steps in nature conservation. Furthermore, the Ministry of Agriculture and Rural Development is pushing forward with comprehensive strategies to enhance forestry management, including setting seven key objectives and introducing 11 initiatives to transition from traditional forestry practices to a more business-oriented approach.
Read more: Green goals: Vietnam to launch carbon trade exchange by 2028
Vietnam boasts a significant forest cover of 14.79 million hectares, representing 42% of its territory. The forestry sector has been experiencing a stable growth rate of 4.6%, with revenues from environmental protection services nearing $445.56 million. The nation's foray into the carbon market has already yielded positive results, with over 10 million carbon credits sold last year, generating more than $50 million and placing Vietnam among the top 60 countries for carbon trading capacity. This move not only underscores Vietnam's role in the global efforts for nature restoration but also positions it as a key player in the international carbon credit market.
Read more: Bullish growth projections in the carbon market
At DGB Group, we believe carbon markets are essential in forging a path towards a sustainable and net-zero future. As a frontrunner in nature-based carbon project initiatives, we acknowledge the crucial role these markets hold in propelling worldwide actions to forward nature conservation and realise significant emission reduction targets. We make nature restoration profitable through the carbon market by providing top-quality, verified carbon credits (also known as carbon units) that are generated by our projects.
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